Audit 383316

2024-004 U.S. Department of Education Passed-through the Commonwealth of Massachusetts Department of Elementary and Secondary Education Special Education Cluster – ALN(s) 84.027 & 84.173 Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award. Condition: Two final financial reports were not filed in a timely manner for Special Education Cluster grants. Cause: A lack of a formal review process for grants in prior years. Effect: The School is not in compliance with federal grant reporting requirements. Questioned Costs: None Repeat Finding from Prior Year: Yes, Finding 2022-001 and 2023-004. Recommendation: We recommend that final financial reports be completed and submitted to the pass-through agency within the prescribed deadlines. Views of Responsible Official: Management agrees with the finding.

2024-005 U.S. Department of Education Passed-through the Commonwealth of Massachusetts Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – ALN 84.425 Material Weakness in Internal Controls over Compliance Criteria: Per the 2024 OMB Compliance Supplement, capital expenditures for general and special purpose equipment purchases and improvements to land, buildings and equipment are subject to prior approval by the pass-through entity. Condition: The Schools’ files did not include documentation of pre-approval for the purchase and installation of alarm systems and security cameras. Cause: A lack of central grant recordkeeping for all federal awards. Effect: The Town did not comply with grant approval requirements for purchases totaling $70,424. Questioned Costs: None. Repeat Finding from Prior Year: No. Recommendation: The Town should implement procedures to maintain all required grant documentation, including pass-through agency approvals, for all grants. Views of Responsible Official: Management agrees with the finding.

2024-006 U.S. Department of Education Passed-through the Commonwealth of Massachusetts Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – ALN 84.425 Criteria: Per 2 CFR section 200.344(a), a subrecipient must submit to the pass-through agency, no later than 90 calendar days after the end date of the period of performance, all financial, performance and other reports as required by the terms and conditions of the Federal award. Condition: One Education Stabilization Fund final financial report has not been submitted that is overdue. Cause: Lack of procedures to timely report financial information to the pass-through agency. Effect: The Town is not in compliance with reporting requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to file all reporting timely and accurately. Views of Responsible Official: Management agrees with the finding.

2024-007 U.S. Department of Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Significant Deficiency in Internal Controls over Compliance and Compliance Finding Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal agency. The compliance supplement identified four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the March 31, 2024 reporting date, the Town’s Project and Expenditure report had reported cumulative expenditures that were approximately $29,900 less than what was recorded in the grant fund on the general ledger. Cause: The Town did not reconcile the Project and Expenditure report with the Town’s general ledger before submitting. Effect: The Town did not properly report grant expenditures in the Project and Expenditure reporting. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2023-008 Recommendation: The Town should implement procedures to reconcile the financial information in the Project and Expenditure reports to the Town’s general ledger before submission. Views of Responsible Official: Management agrees with the finding.