Audit 415155

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: SLFRP1095 Pass-Through Agency: State of Rhode Island Department of Administration Pass-Through Number(s): Unknown Award Period: March 3, 2021 – December 31, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: In accordance with 2 CFR 200.328 and 31 CFR section 35.4(c), the City is required to submit quarterly “Project and Expenditure Reports” which are due 30 days after the end of each quarterly period. Condition: During our testing, we noted the City did not have adequate internal controls designed to ensure the quarterly reports were completed accurately. Questioned costs: None Context: During our testing, it was noted that the City did not accurately report the current period expenses and cumulative expenditures, or the revenue loss calculations for each of the quarterly reports. Cause: Lack of controls surrounding the preparation of quarterly reports. Effect: Failure to comply with Uniform Guidance and Treasury reporting requirements may result in questioned costs, audit findings, and potential recoupment of federal funds. Repeat Finding: 2024-003 Recommendation: We recommend the City implement procedures to ensure the accuracy of quarterly reporting and maintain supporting documentation for each of the amounts reported. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Education Federal Program Name: Title I Assistance Listing Number: 84.010 Federal Award Identification Number and Year: Unknown Pass-Through Agency: RI Department of Education Pass-Through Number(s): 2725-11702-501 Award Period: July 1, 2024 – September 30, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), specifically 2 CFR §200.430(i), charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, the non-Federal entity is required to have written procedures and a system of internal controls to ensure that charges for compensation are accurate, allowable, and properly allocated to each applicable cost objective. Condition: The school department did not maintain adequate time and effort documentation to support payroll costs charged to the program. Questioned costs: None Context: During testing of payroll expenditures, it was identified that the school department was not able to provide the time and effort documentation required for all tested payroll expenditures. Cause: School department procedures for monitoring and retaining time and effort documentation were not consistently implemented. In addition, management oversight procedures did not ensure that required certifications were completed timely, reviewed for accuracy, and retained in accordance with federal requirements. Effect: This condition increases the risk that federal funds may have been charged for costs not properly supported or not benefiting the program, resulting in noncompliance with federal grant requirements. Recommendation: Establish and formally document procedures to ensure time and effort documentation is completed in accordance with federal requirements. Require periodic review of procedures by management to verify accuracy and completeness. Ensure all time and effort documentation is properly retained and readily available for audit purposes. Provide training to applicable staff on federal time and effort documentation requirements. Views of responsible officials: There is no disagreement with the audit finding.