FAC Explorer

Audit 51497

FY End
2022-06-30
Total Expended
$22.62M
Findings
268
Programs
17
Organization: Board of Education of Allegany County (MD)
Year: 2022 Accepted: 2023-01-31
Auditor: Huber Michaels & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51419 2022-004 Material Weakness - A
51420 2022-001 Significant Deficiency Yes P
51421 2022-002 Material Weakness Yes P
51422 2022-003 Significant Deficiency - I
51423 2022-004 Material Weakness - A
51424 2022-001 Significant Deficiency Yes P
51425 2022-002 Material Weakness Yes P
51426 2022-003 Significant Deficiency - I
51427 2022-004 Material Weakness - A
51428 2022-001 Significant Deficiency Yes P
51429 2022-002 Material Weakness Yes P
51430 2022-003 Significant Deficiency - I
51431 2022-004 Material Weakness - A
51432 2022-001 Significant Deficiency Yes P
51433 2022-002 Material Weakness Yes P
51434 2022-003 Significant Deficiency - I
51435 2022-004 Material Weakness - A
51436 2022-001 Significant Deficiency Yes P
51437 2022-002 Material Weakness Yes P
51438 2022-003 Significant Deficiency - I
51439 2022-004 Material Weakness - A
51440 2022-001 Significant Deficiency Yes P
51441 2022-002 Material Weakness Yes P
51442 2022-003 Significant Deficiency - I
51443 2022-004 Material Weakness - A
51444 2022-001 Significant Deficiency Yes P
51445 2022-002 Material Weakness Yes P
51446 2022-003 Significant Deficiency - I
51447 2022-004 Material Weakness - A
51448 2022-001 Significant Deficiency Yes P
51449 2022-002 Material Weakness Yes P
51450 2022-003 Significant Deficiency - I
51451 2022-004 Material Weakness - A
51452 2022-001 Significant Deficiency Yes P
51453 2022-002 Material Weakness Yes P
51454 2022-003 Significant Deficiency - I
51455 2022-004 Material Weakness - A
51456 2022-001 Significant Deficiency Yes P
51457 2022-002 Material Weakness Yes P
51458 2022-003 Significant Deficiency - I
51459 2022-004 Material Weakness - A
51460 2022-001 Significant Deficiency Yes P
51461 2022-002 Material Weakness Yes P
51462 2022-003 Significant Deficiency - I
51463 2022-004 Material Weakness - A
51464 2022-001 Significant Deficiency Yes P
51465 2022-002 Material Weakness Yes P
51466 2022-003 Significant Deficiency - I
51467 2022-004 Material Weakness - A
51468 2022-001 Significant Deficiency Yes P
51469 2022-002 Material Weakness Yes P
51470 2022-003 Significant Deficiency - I
51471 2022-004 Material Weakness - A
51472 2022-001 Significant Deficiency Yes P
51473 2022-002 Material Weakness Yes P
51474 2022-003 Significant Deficiency - I
51475 2022-004 Material Weakness - A
51476 2022-001 Significant Deficiency Yes P
51477 2022-002 Material Weakness Yes P
51478 2022-003 Significant Deficiency - I
51479 2022-004 Material Weakness - A
51480 2022-001 Significant Deficiency Yes P
51481 2022-002 Material Weakness Yes P
51482 2022-001 Significant Deficiency Yes P
51483 2022-002 Material Weakness Yes P
51484 2022-001 Significant Deficiency Yes P
51591 2022-001 Significant Deficiency Yes P
51592 2022-002 Material Weakness Yes P
51593 2022-003 Significant Deficiency - I
51594 2022-004 Material Weakness - A
51595 2022-001 Significant Deficiency Yes P
51596 2022-002 Material Weakness Yes P
51597 2022-003 Significant Deficiency - I
51598 2022-004 Material Weakness - A
51599 2022-001 Significant Deficiency Yes P
51600 2022-002 Material Weakness Yes P
51601 2022-003 Significant Deficiency - I
51602 2022-004 Material Weakness - A
51603 2022-001 Significant Deficiency Yes P
51604 2022-002 Material Weakness Yes P
51605 2022-003 Significant Deficiency - I
51606 2022-004 Material Weakness - A
51607 2022-001 Significant Deficiency Yes P
51608 2022-002 Material Weakness Yes P
51609 2022-003 Significant Deficiency - I
51610 2022-004 Material Weakness - A
51611 2022-001 Significant Deficiency Yes P
51612 2022-002 Material Weakness Yes P
51613 2022-003 Significant Deficiency - I
51614 2022-004 Material Weakness - A
51615 2022-001 Significant Deficiency Yes P
51616 2022-002 Material Weakness Yes P
51617 2022-003 Significant Deficiency - I
51618 2022-004 Material Weakness - A
51619 2022-001 Significant Deficiency Yes P
51620 2022-002 Material Weakness Yes P
51621 2022-003 Significant Deficiency - I
51622 2022-004 Material Weakness - A
51623 2022-001 Significant Deficiency Yes P
51624 2022-002 Material Weakness Yes P
51625 2022-003 Significant Deficiency - I
51626 2022-004 Material Weakness - A
51627 2022-001 Significant Deficiency Yes P
51628 2022-002 Material Weakness Yes P
51629 2022-003 Significant Deficiency - I
51773 2022-002 Material Weakness Yes P
51774 2022-001 Significant Deficiency Yes P
51775 2022-002 Material Weakness Yes P
51776 2022-001 Significant Deficiency Yes P
51777 2022-002 Material Weakness Yes P
51778 2022-001 Significant Deficiency Yes P
51779 2022-002 Material Weakness Yes P
51908 2022-001 Significant Deficiency Yes P
51909 2022-002 Material Weakness Yes P
51910 2022-001 Significant Deficiency Yes P
51911 2022-002 Material Weakness Yes P
51912 2022-001 Significant Deficiency Yes P
51913 2022-002 Material Weakness Yes P
51914 2022-003 Significant Deficiency - I
51915 2022-001 Significant Deficiency Yes P
51916 2022-002 Material Weakness Yes P
51917 2022-003 Significant Deficiency - I
51918 2022-001 Significant Deficiency Yes P
51919 2022-002 Material Weakness Yes P
51920 2022-003 Significant Deficiency - I
51921 2022-001 Significant Deficiency Yes P
51922 2022-002 Material Weakness Yes P
51923 2022-003 Significant Deficiency - I
51924 2022-001 Significant Deficiency Yes P
51925 2022-002 Material Weakness Yes P
51926 2022-003 Significant Deficiency - I
51927 2022-001 Significant Deficiency Yes P
51928 2022-002 Material Weakness Yes P
51929 2022-003 Significant Deficiency - I
627861 2022-004 Material Weakness - A
627862 2022-001 Significant Deficiency Yes P
627863 2022-002 Material Weakness Yes P
627864 2022-003 Significant Deficiency - I
627865 2022-004 Material Weakness - A
627866 2022-001 Significant Deficiency Yes P
627867 2022-002 Material Weakness Yes P
627868 2022-003 Significant Deficiency - I
627869 2022-004 Material Weakness - A
627870 2022-001 Significant Deficiency Yes P
627871 2022-002 Material Weakness Yes P
627872 2022-003 Significant Deficiency - I
627873 2022-004 Material Weakness - A
627874 2022-001 Significant Deficiency Yes P
627875 2022-002 Material Weakness Yes P
627876 2022-003 Significant Deficiency - I
627877 2022-004 Material Weakness - A
627878 2022-001 Significant Deficiency Yes P
627879 2022-002 Material Weakness Yes P
627880 2022-003 Significant Deficiency - I
627881 2022-004 Material Weakness - A
627882 2022-001 Significant Deficiency Yes P
627883 2022-002 Material Weakness Yes P
627884 2022-003 Significant Deficiency - I
627885 2022-004 Material Weakness - A
627886 2022-001 Significant Deficiency Yes P
627887 2022-002 Material Weakness Yes P
627888 2022-003 Significant Deficiency - I
627889 2022-004 Material Weakness - A
627890 2022-001 Significant Deficiency Yes P
627891 2022-002 Material Weakness Yes P
627892 2022-003 Significant Deficiency - I
627893 2022-004 Material Weakness - A
627894 2022-001 Significant Deficiency Yes P
627895 2022-002 Material Weakness Yes P
627896 2022-003 Significant Deficiency - I
627897 2022-004 Material Weakness - A
627898 2022-001 Significant Deficiency Yes P
627899 2022-002 Material Weakness Yes P
627900 2022-003 Significant Deficiency - I
627901 2022-004 Material Weakness - A
627902 2022-001 Significant Deficiency Yes P
627903 2022-002 Material Weakness Yes P
627904 2022-003 Significant Deficiency - I
627905 2022-004 Material Weakness - A
627906 2022-001 Significant Deficiency Yes P
627907 2022-002 Material Weakness Yes P
627908 2022-003 Significant Deficiency - I
627909 2022-004 Material Weakness - A
627910 2022-001 Significant Deficiency Yes P
627911 2022-002 Material Weakness Yes P
627912 2022-003 Significant Deficiency - I
627913 2022-004 Material Weakness - A
627914 2022-001 Significant Deficiency Yes P
627915 2022-002 Material Weakness Yes P
627916 2022-003 Significant Deficiency - I
627917 2022-004 Material Weakness - A
627918 2022-001 Significant Deficiency Yes P
627919 2022-002 Material Weakness Yes P
627920 2022-003 Significant Deficiency - I
627921 2022-004 Material Weakness - A
627922 2022-001 Significant Deficiency Yes P
627923 2022-002 Material Weakness Yes P
627924 2022-001 Significant Deficiency Yes P
627925 2022-002 Material Weakness Yes P
627926 2022-001 Significant Deficiency Yes P
628033 2022-001 Significant Deficiency Yes P
628034 2022-002 Material Weakness Yes P
628035 2022-003 Significant Deficiency - I
628036 2022-004 Material Weakness - A
628037 2022-001 Significant Deficiency Yes P
628038 2022-002 Material Weakness Yes P
628039 2022-003 Significant Deficiency - I
628040 2022-004 Material Weakness - A
628041 2022-001 Significant Deficiency Yes P
628042 2022-002 Material Weakness Yes P
628043 2022-003 Significant Deficiency - I
628044 2022-004 Material Weakness - A
628045 2022-001 Significant Deficiency Yes P
628046 2022-002 Material Weakness Yes P
628047 2022-003 Significant Deficiency - I
628048 2022-004 Material Weakness - A
628049 2022-001 Significant Deficiency Yes P
628050 2022-002 Material Weakness Yes P
628051 2022-003 Significant Deficiency - I
628052 2022-004 Material Weakness - A
628053 2022-001 Significant Deficiency Yes P
628054 2022-002 Material Weakness Yes P
628055 2022-003 Significant Deficiency - I
628056 2022-004 Material Weakness - A
628057 2022-001 Significant Deficiency Yes P
628058 2022-002 Material Weakness Yes P
628059 2022-003 Significant Deficiency - I
628060 2022-004 Material Weakness - A
628061 2022-001 Significant Deficiency Yes P
628062 2022-002 Material Weakness Yes P
628063 2022-003 Significant Deficiency - I
628064 2022-004 Material Weakness - A
628065 2022-001 Significant Deficiency Yes P
628066 2022-002 Material Weakness Yes P
628067 2022-003 Significant Deficiency - I
628068 2022-004 Material Weakness - A
628069 2022-001 Significant Deficiency Yes P
628070 2022-002 Material Weakness Yes P
628071 2022-003 Significant Deficiency - I
628215 2022-002 Material Weakness Yes P
628216 2022-001 Significant Deficiency Yes P
628217 2022-002 Material Weakness Yes P
628218 2022-001 Significant Deficiency Yes P
628219 2022-002 Material Weakness Yes P
628220 2022-001 Significant Deficiency Yes P
628221 2022-002 Material Weakness Yes P
628350 2022-001 Significant Deficiency Yes P
628351 2022-002 Material Weakness Yes P
628352 2022-001 Significant Deficiency Yes P
628353 2022-002 Material Weakness Yes P
628354 2022-001 Significant Deficiency Yes P
628355 2022-002 Material Weakness Yes P
628356 2022-003 Significant Deficiency - I
628357 2022-001 Significant Deficiency Yes P
628358 2022-002 Material Weakness Yes P
628359 2022-003 Significant Deficiency - I
628360 2022-001 Significant Deficiency Yes P
628361 2022-002 Material Weakness Yes P
628362 2022-003 Significant Deficiency - I
628363 2022-001 Significant Deficiency Yes P
628364 2022-002 Material Weakness Yes P
628365 2022-003 Significant Deficiency - I
628366 2022-001 Significant Deficiency Yes P
628367 2022-002 Material Weakness Yes P
628368 2022-003 Significant Deficiency - I
628369 2022-001 Significant Deficiency Yes P
628370 2022-002 Material Weakness Yes P
628371 2022-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.559 Summer Food Service Program for Children $4.84M - 0
84.010 Title I Grants to Local Educational Agencies $2.95M - 0
10.555 National School Lunch Program $455,210 - 0
84.367 Improving Teacher Quality State Grants $346,284 Yes 2
10.560 State Administrative Expenses for Child Nutrition $159,988 - 0
10.558 Child and Adult Care Food Program $150,478 - 0
84.424 Student Support and Academic Enrichment Program $57,754 - 0
10.582 Fresh Fruit and Vegetable Program $52,125 - 0
93.575 Child Care and Development Block Grant $42,765 - 0
23.011 Appalachian Research, Technical Assistance, and Demonstration Projects $32,122 - 0
84.181 Special Education-Grants for Infants and Families $21,275 - 0
84.051 Career and Technical Education -- National Programs $13,047 - 0
84.173 Special Education_preschool Grants $13,035 Yes 4
21.027 Coronavirus State and Local Fiscal Recovery Funds $11,144 Yes 3
84.027 Special Education_grants to States $7,411 Yes 4
84.048 Career and Technical Education -- Basic Grants to States $6,741 - 0
84.425 Education Stabilization Fund $4,154 Yes 2

Contacts

Name Title Type
UDVMRHKJAQM1 Lawrence McKenzie, CPA Auditee
3017592024 Edward G. Huber, Jr. Auditor
No contacts on file

Notes to SEFA

Title: SCOPE OF AUDIT PURSUANT TO UNIFORM GUIDANCE Accounting Policies: BASIS OF PRESENTATION - THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INCLUDES ALL FEDERAL GRANTS WHICH HAD FINANCIAL ACTIVITY DURING THE FISCAL YEAR ENDED JUNE 30, 2022. THIS STATEMENT HAS BEEN PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. De Minimis Rate Used: N Rate Explanation: THE BOARD HAS ELECTED NOT TO USE THE 10% DE MINIMIS INDIRECT COST RATE. THE AUDITEE'S OINDIRECT COST RATE IS APPROVED ANNUALLY BY THE MARYLAND STATE DEPARTMENT OF EDUCATION FOR THE YEAR ENDED JUNE 30, 2022, THE INDIRECT COST RATE FOR RESTRICTED FUNDS WAS 1.78% All federal awards programs operated by the Board of Education of Allegany County are included in the scope of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) audit.The Maryland State Department of Education is the Board of Education of Allegany County's oversight agency for the single audit.
Title: FISCAL PERIOD AUDITED Accounting Policies: BASIS OF PRESENTATION - THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INCLUDES ALL FEDERAL GRANTS WHICH HAD FINANCIAL ACTIVITY DURING THE FISCAL YEAR ENDED JUNE 30, 2022. THIS STATEMENT HAS BEEN PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. De Minimis Rate Used: N Rate Explanation: THE BOARD HAS ELECTED NOT TO USE THE 10% DE MINIMIS INDIRECT COST RATE. THE AUDITEE'S OINDIRECT COST RATE IS APPROVED ANNUALLY BY THE MARYLAND STATE DEPARTMENT OF EDUCATION FOR THE YEAR ENDED JUNE 30, 2022, THE INDIRECT COST RATE FOR RESTRICTED FUNDS WAS 1.78% Single audit testing procedures were performed for program transactions occurring during the fiscal year ended June 30, 2022.
Title: REVENUE RECONCILIATION Accounting Policies: BASIS OF PRESENTATION - THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INCLUDES ALL FEDERAL GRANTS WHICH HAD FINANCIAL ACTIVITY DURING THE FISCAL YEAR ENDED JUNE 30, 2022. THIS STATEMENT HAS BEEN PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. De Minimis Rate Used: N Rate Explanation: THE BOARD HAS ELECTED NOT TO USE THE 10% DE MINIMIS INDIRECT COST RATE. THE AUDITEE'S OINDIRECT COST RATE IS APPROVED ANNUALLY BY THE MARYLAND STATE DEPARTMENT OF EDUCATION FOR THE YEAR ENDED JUNE 30, 2022, THE INDIRECT COST RATE FOR RESTRICTED FUNDS WAS 1.78% Revenue recognized from federal sources per the schedule of expenditures of federal awards does not include fee for service revenue. Federal revenue from the Medical Assistance Program (CFDA number 93.778) and Medicare Part D totaled $982,483 for the year ended June 30, 2022.Total revenue from federal sources per the basic financial statements is $23,435,179. Total revenue from federal sources per the schedule of expenditures of federal awards is $22,622,809. The fee for service revenue accounts for part of this difference. The remaining difference of $170,113 is attributable to variances in USDA Commodities and timing differences related to COVID-19 relief grants for Food Services as follows:USDA Commodities per MSDE $455,210 Unspent produce (3)Unspent commodities(19,632)USDA Commodities per Financial StatementS $435,575 USDA Variance(19,635)Child Nutrition Emergency Operational Costs Reimbursement Grant(150,478)SEFA vs. Financial Statements Variance $(170,113)
Title: SUBRECIPIENTS Accounting Policies: BASIS OF PRESENTATION - THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INCLUDES ALL FEDERAL GRANTS WHICH HAD FINANCIAL ACTIVITY DURING THE FISCAL YEAR ENDED JUNE 30, 2022. THIS STATEMENT HAS BEEN PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. De Minimis Rate Used: N Rate Explanation: THE BOARD HAS ELECTED NOT TO USE THE 10% DE MINIMIS INDIRECT COST RATE. THE AUDITEE'S OINDIRECT COST RATE IS APPROVED ANNUALLY BY THE MARYLAND STATE DEPARTMENT OF EDUCATION FOR THE YEAR ENDED JUNE 30, 2022, THE INDIRECT COST RATE FOR RESTRICTED FUNDS WAS 1.78% The Board did not pass-through any federal awards to subrecipients for the year ended June 30, 2022.

Finding Details

Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-004
2022-004 Lack of Internal Controls over Activities Allowed or UnallowedFederal Programs: Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Governmental entities are required to maintain a system of internal controls such that all compliance requirements are fulfilled. Condition: The Board is required to submit an annual IDEA Excess Cost Requirement Calculation Template and Certification to determine if activities are allowed or unallowed. The Board?s SFY 2022 submission contained errors. Cause: The Board did not diligently complete the SFY 2022 IDEA Excess Cost Requirement Calculation Template and Certification, and the form could not be relied upon to show compliance with activities allowed or unallowed. Effect: Preparing an inaccurate Template and Certification could result in the Board mistakenly concluding they were in compliance when they were not. Completion of a revised Template and Certification indicated the Board was in compliance with activities allowed or unallowed. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend that staff maintain detailed worksheets with the prepared Template and Certification and that the report and supporting worksheets be reviewed by a second member of the finance staff. Views of Responsible Officials and Planned Corrective Action: Board finance staff will implement a review process prior to signing off on the annual Special Education IDEA Excess Cost Template and Certification. The Board acknowledges the importance of the accuracy of the report it certifies.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.
Finding 2022-001
2022-001 Monitoring of Internal Controls Criteria: Management should have a formal system in place to monitor the adequacy and effectiveness of the Board?s system of internal controls. Condition: Management does not have an adequate system in place to provide ongoing or separate evaluations of the effectiveness of the Board?s system of internal controls. The current system does not routinely monitor and test the controls in place and is performed by the Finance Department who reports to management rather than directly to the governing board. Cause: The Board does not have an employee independent of the Finance Department who is responsible for monitoring the system of internal controls and who reports directly to the governing Board. Effect: The Board?s system of internal controls may not be designed or operating effectively or as intended. Monitoring of internal controls is essential to provide reasonable assurance that controls will prevent or detect material misstatements in the financial statements in a timely manner. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-001). Recommendation: We recommend the Board of Education employ an individual to perform internal audit functions on a periodic basis. The individual should be from outside the finance department and would report directly to the Board Officials. Views of Responsible Officials and Planned Corrective Action: The Board acknowledges the value of an audit/monitoring function. However, as a result of budget constraints, the Board does not plan to implement in internal audit/monitoring function.
Finding 2022-002
2022-002 Material Adjustments to the Financial Statements were Required Criteria: Governmental entities are required to maintain a system of internal controls such that all material transactions are properly recorded as to amount, account, and period. Condition: Material adjustments to the Board?s financial statements were required. Material adjustment to the Restricted Fund resulted from the purchase of multi-year subscriptions and licenses that were fully expensed in the current year. Per generally accepted accounting principles, the portion of multi-year contracts that is attributable to future periods is to be record as prepaid expense. Cause: For the current year adjustment, there was a lack of recognition for the purchase of multi-year contracts as to the period of benefit. Effect: Revenues and expenditures were overstated by a material amount in the Restricted Fund. If the adjustments were not made, the financial statements would be materially misstated and could have improperly influenced the users of the financial statements. Repeat Finding: This finding is a repeat of a finding in the prior year audit (Finding 2021-002). Recommendation: We recommend that staff be more cognizant of the terms of multi-year contracts to ensure that expenditures are recognized in the proper period. Views of Responsible Officials and Planned Corrective Action: The Board entered into multi-year contracts to garner additional savings for the district during the contractual period. The Board has developed allocation schedules to ensure a more appropriate matching of expense to the financial period. The Board may continue to enter into multi-year agreements for contractual savings but will expense only the portion of the contract in the period of performance.
Finding 2022-003
2022-003 Noncompliance with Procurement Requirements Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CFDA No. 21.027) and Special Education (CFDA No.?s 84.027 and 84.173) Criteria: Recipients are required to comply with 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. The Board follows the Annotated Code of Maryland, the Education Article, and Board Policy DJB with respect to procurement. For purchases between $3,501 and $25,000, two written oral quotes must be acquired. Condition: Seven purchases between $3,501 and $25,000 were noted for which there was not documentation of two quotes or supporting documentation of single sourcing. Cause: The individuals in charge of purchasing did not document their procedures. Effect: The Board is not in compliance with the procurement requirements of the grant which could affect future funding. Repeat Finding: This finding was not a finding in FY21. Recommendation: We recommend the grants administrators communicate procurement requirements, including documentation requirements, to purchasing agents in order to avoid future misinterpretations and noncompliance. Views of Responsible Officials and Planned Corrective Action: The Board will communicate procurement requirements to purchasing agents in order to avoid future misinterpretation and noncompliance. In most instances, evidence of procurement requirement compliance was observed, but not documented appropriately for compliance requirements.