Audit 397023

Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A - Direct Pass-Through Number: N/A - Direct Award Period: March 3, 2021 – December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) require non-federal entities to accurately and completely report federal expenditures for the entire applicable reporting period. Expenditure reports must include all eligible costs incurred during the period of performance and since the end of the prior reporting period. Condition: Current period expenditures reported for the Coronavirus State and Local Fiscal Recovery Funds program were understated by $279,451 on the March 31, 2025, Project and Expenditure report which should report expenditures from April 1, 2024 through March 31, 2025. Questioned costs: None. Context: The March 31, 2025 Project and Expenditure Report only included current period expenditures for the period July 1, 2024 through March 31, 2025; expenditures, totaling $279,451, incurred between April 1, 2024 through June 30, 2024 were erroneously excluded. Cause: The understatement occurred due to an error in determining the appropriate reporting period. Management did not ensure that expenditures incurred between April 1, 2024 and June 30, 2024 were included in the current period Project and Expenditure report. Effect: Current period expenditures reported were understated by $279,451, resulting in inaccurate reporting and noncompliance with federal reporting requirements. Repeat Finding: No. Recommendation: We recommend management implement procedures to ensure all eligible costs are reported in the current period expenditures section of the Project and Expenditure report. This may include maintaining a reconciliation between internal accounting records and amounts reported on the Project and Expenditure report and performing a supervisory review of the document prior to submission. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Federal Award Identification Number and Year: H027A230076 (10/1/2024 – 9/30/2026), H173A230039 (10/1/2024 – 9/30/2026) Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 240-000558-2025-0284, 262-000559-2025-0284 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Qualified Opinion) Criteria or specific requirement: In accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and the applicable grant agreements, costs charged to federal awards must be incurred within the approved period of performance. Expenditures incurred outside of the grant’s authorized start and end dates are not allowable and should not be charged to the award. Condition: For the year ended June 30, 2025, expenditures were charged to both the Special Education Grants to States (IDEA, Part B) program (ALN 84.027) and the Special Education Preschool Grants program (ALN 84.173) for costs incurred during the period from July 2024 through September 2024. However, the approved period of performance for both grants began on October 1, 2024. These expenditures were charged to the grants through a journal entry, resulting in costs incurred prior to the start of the period of performance being included as federal expenditures. Questioned costs: $64,511 Context: During testing of expenditures charged at the beginning of the period of performance for both the Special Education Grants to States (IDEA, Part B) program and the Special Education Preschool Grants program, it was identified that $64,511 of costs charged to the grants were incurred prior to the start of the award periods on October 1, 2024. Cause: Inadequate review of the grant period of performance prior to transferring costs to the federal programs through journal entries. Effect: Expenditures incurred outside the approved period of performance were charged to federal awards, resulting in noncompliance with federal award requirements related to period of performance. Repeat Finding: No. Recommendation: We recommend management implement procedures to ensure that expenditures charged to federal grants are incurred within the approved period of performance. Views of responsible officials: There is no disagreement with the audit finding.