Audit 392071

Provide Adequate Documentation to Support Federal Award Costs Federal Agency: U.S. Department of Education Pass-through Agency: New Hampshire Department of Education Program: Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425 Compliance Requirement: Allowable Costs and Cost Principles Criteria: Title 2, U.S. Code of Federal Regulations, Part 200.101, Subpart E – Cost Principles, requires that the School District provide adequate documentation to support federal award costs. Condition: The School District reported receipt of grant revenues in excess of grant expenditures in its grants fund. Cause: Procedures to properly capture expenditures for the CARES grant were not adequate, resulting in a lack of documentation to identify the expenditures that support the amount of federal funding received. Effect: The School District is not in compliance with the cost principles requirement. Moreover, the School District could be required to pay back the amount of federal funds that is not supported by proper documentation. Questioned Costs: The School District reported $76,081 in costs related to salaries and benefits, supplies, services, and indirect costs that that were not specifically identified within its grant accounting records or other evidence. Recommendation: We recommend that all monthly reporting requests for reimbursement to the State of NH Department of Education be supported by proper documentation and reconciled to the School District’s accounting records. Management’s Response: Management agrees with the finding.

Revise Written Policies and Develop Procedures over Administration of Federal Grants Federal Agency: U.S. Department of Education Pass-through Agency: New Hampshire Department of Education Program: Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425 Compliance Requirements: Activities Allowed or Unallowed; Allowable Costs/Cost Principles; Equipment Management; and Procurement, Suspension and Debarment Criteria: The Uniform Guidance requires nonfederal entities that receive federal awards to establish written policies and procedures as described in the following sections: • Time and effort (2 CFR 200.431) • Equipment (2 CFR 200.313) • General procurement standards (2 CFR 200.318) • Competition (2 CFR 200.319) • Methods of procurement to be followed (2 CFR 200.320) Condition: The School District did not have procedures to comply with its written policies relative to federal awards as required by the Uniform Guidance. Cause: The School District was not aware of these compliance requirements. Effect: The School District is not in compliance with the Uniform Guidance with respect to these written policies. Recommendation: We recommend that the School District update its policies and procedures to comply with the Uniform Guidance requirements stated above. Management’s Response: Management agrees with the finding.