Audit 44459

SCHEDULE II REGIONAL SCHOOL UNIT #67 Schedule of Findings and Questioned Costs For the Year Ended June 30, 2022 A. SUMMARY OF AUDITOR?S RESULTS 1. The auditor?s report expresses unmodified opinions on the financial statements of Regional School Unit #67. 2. No material weaknesses or significant deficiencies relating to the audit of the financial statements is reported in the Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 3. One instance of noncompliance material to the financial statements of Regional School Unit #67 was discovered during the audit. 4. One material weakness relating to the audit of the major federal award programs are reported in the Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance. 5. The auditor?s report on compliance for the major federal award programs for Regional School Unit #67 expresses an unmodified opinion. 6. Audit findings relative to the major federal award programs for Regional School Unit #67 are reported in Part C of this schedule. 7. The programs tested as major programs include: ALN #84.027 - Special Education Grants to States ALN #84.425D - COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act ? ESSERF ALN #84.425D - COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act ? ESSERF II ALN #84.425U - COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act ? ARP 8. The threshold for distinguishing Types A and B programs was $750,000. 9. Regional School Unit #67 was not determined to be a low-risk auditee. B. FINDINGS ? FINANCIAL STATEMENT AUDIT NONE C. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT 2022-001 Equipment and Real Property Management Criteria: Per 2 CFR section 200.313(c) through (e), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: The School Unit did not maintain property records or complete a physical inventory as described above. Cause: The School Unit was not aware of this compliance requirement for this new grant. 85 Effect: The School Unit is not in compliance with equipment and real property management requirements. Questioned Costs: None. Recommendation: We recommend the School Unit create property records for the federal grant. We also recommend management performs inventory at least once every two years. Response: Management concurs with the recommendation. During the time of audit fieldwork, the School Unit created a binder with property records for all equipment purchased with the grant money.

SCHEDULE II REGIONAL SCHOOL UNIT #67 Schedule of Findings and Questioned Costs For the Year Ended June 30, 2022 A. SUMMARY OF AUDITOR?S RESULTS 1. The auditor?s report expresses unmodified opinions on the financial statements of Regional School Unit #67. 2. No material weaknesses or significant deficiencies relating to the audit of the financial statements is reported in the Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 3. One instance of noncompliance material to the financial statements of Regional School Unit #67 was discovered during the audit. 4. One material weakness relating to the audit of the major federal award programs are reported in the Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance. 5. The auditor?s report on compliance for the major federal award programs for Regional School Unit #67 expresses an unmodified opinion. 6. Audit findings relative to the major federal award programs for Regional School Unit #67 are reported in Part C of this schedule. 7. The programs tested as major programs include: ALN #84.027 - Special Education Grants to States ALN #84.425D - COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act ? ESSERF ALN #84.425D - COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act ? ESSERF II ALN #84.425U - COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act ? ARP 8. The threshold for distinguishing Types A and B programs was $750,000. 9. Regional School Unit #67 was not determined to be a low-risk auditee. B. FINDINGS ? FINANCIAL STATEMENT AUDIT NONE C. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT 2022-001 Equipment and Real Property Management Criteria: Per 2 CFR section 200.313(c) through (e), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition: The School Unit did not maintain property records or complete a physical inventory as described above. Cause: The School Unit was not aware of this compliance requirement for this new grant. 85 Effect: The School Unit is not in compliance with equipment and real property management requirements. Questioned Costs: None. Recommendation: We recommend the School Unit create property records for the federal grant. We also recommend management performs inventory at least once every two years. Response: Management concurs with the recommendation. During the time of audit fieldwork, the School Unit created a binder with property records for all equipment purchased with the grant money.