FAC Explorer

Audit 5592

FY End
2022-06-30
Total Expended
$2.04M
Findings
4
Programs
7
Organization: King Philip Regional School District (MA)
Year: 2022 Accepted: 2023-12-06
Auditor: Lynch Marini & Associates INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3578 2022-001 Significant Deficiency - P
3579 2022-002 - - P
580020 2022-001 Significant Deficiency - P
580021 2022-002 - - P

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $748,312 - 0
21.019 Coronavirus Relief Fund $455,364 Yes 2
93.U12 Center for Disease Control-Drug Free Communities $82,394 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $63,513 - 0
84.010 Title I Grants to Local Educational Agencies $44,099 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
84.027 Special Education_grants to States $9,348 - 0

Contacts

Name Title Type
EZ1KL7H4XHM3 Larry Azer Auditee
5085207991 Grady Connor Auditor
No contacts on file

Notes to SEFA

Title: Cash and Non-cash assistance - Child Nutrition Cluster Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The following define the cash and non-cash assiatnce provided by the U.S. Department of Agriculture's Child Nutrition Cluster - National School Lunch Program (AL#10.555).Cash assistance - expenditures represent federal reimbursement for meals during the year. Non-cash assistance - represent food commodities received under a state distribution formula and are valued at federally published wholesale prices for purposes of this schedule. Such commodities are not recorded in the financial records, although memorandum records are maintained.
Title: Subrecipients Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The District did not have any subrecipients for the year ended June 30, 2022.
Title: COVID-19 pandemic related funding Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the District submits to federal awarding or pass-through entities. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Programs identified in the accompanying Schedule of Expenditures of Federal Awards which have been funded pursuant to federal legislation as a result of the coronavirus pandemic have been specifically indicated with the prefix- COVID-19.

Finding Details

Finding 2022-001
Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award's compliance requirement on an annual basis. Condition: During the current year audit, we noted original budge lines to the grant were not amended from the original submission to correspond with actual costs incurred. Accordingly, final costs reported to the pass-through entity were reported in the original budget categories, rather than classifications within the accounting records. Additionally, there was a $4,300 variance between the general ledger and the final report. Based upon our expenditures tested (approximately $300,00), no unallowed costs were noted. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, primarily as a result of COVID-19 pandemic related funding. The District had established general procedures surrounding administration of grant awards in accordance with district processes and pass-through agency procedures; however, the District had not yet established more formalized policies and procedures which more specifically address the compliance requirements within the Uniform Guidance and provide for an overall centralized monitoring of grants and compliance. This had been reported as a finding in the prior year (2021-001). Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Cause: The District's managers did not amend the applicable grants budget with the pass-through entity with actual costs incurred and postings within the underlying accounting records. An overall formalized grants management policy manual and monitoring thereof had not been implemented during fiscal year 2022. Questioned costs: None reported in the current year. Repeat Finding: As noted above, the finding is a partial repeat finding from the prior year. Auditor's recommendation: We continue to recommend the District establish more formalized policies and procedures surrounding the administration of federal grants and award programs, which specifically address compliance requirements of all grants received and a centralized monitoring thereof. Established policies and procedures should provide for routine monitoring and evaluation of adopted internal control policies and procedures to ensure requirements are met. Moreover, we recommend additional review and approval of journal entries posted within the accounting system through grants managers and officials reclassifying from original postings and approvals. We have been informed by management that a grants manual has been implemented during fiscal year 2023.
Finding 2022-002
Criteria: OMB guidelines generally requires the District's Single Audit to be completed and filed by March 31 of the following year (march 31, 2023). Condition: The District was unable to meet the filing deadline in the current year. Cause: The District was not timely with the audit. Effect: The District's filing is considered late by OMB. Auditor's Recommendation: We recommend the District work to meet the required filing deadline.
Finding 2022-001
Criteria: The District should have established internal control policies and procedures surrounding the administration of federal grants which address each federal award's compliance requirement on an annual basis. Condition: During the current year audit, we noted original budge lines to the grant were not amended from the original submission to correspond with actual costs incurred. Accordingly, final costs reported to the pass-through entity were reported in the original budget categories, rather than classifications within the accounting records. Additionally, there was a $4,300 variance between the general ledger and the final report. Based upon our expenditures tested (approximately $300,00), no unallowed costs were noted. The District had not been subject to the Single Audit threshold of expenditures of $750,000 or more on an annual basis prior to fiscal year 2021, primarily as a result of COVID-19 pandemic related funding. The District had established general procedures surrounding administration of grant awards in accordance with district processes and pass-through agency procedures; however, the District had not yet established more formalized policies and procedures which more specifically address the compliance requirements within the Uniform Guidance and provide for an overall centralized monitoring of grants and compliance. This had been reported as a finding in the prior year (2021-001). Potential Effect: Costs may be disallowed. Furthermore, noncompliance with specific compliance requirements applicable to a federal award could occur. Cause: The District's managers did not amend the applicable grants budget with the pass-through entity with actual costs incurred and postings within the underlying accounting records. An overall formalized grants management policy manual and monitoring thereof had not been implemented during fiscal year 2022. Questioned costs: None reported in the current year. Repeat Finding: As noted above, the finding is a partial repeat finding from the prior year. Auditor's recommendation: We continue to recommend the District establish more formalized policies and procedures surrounding the administration of federal grants and award programs, which specifically address compliance requirements of all grants received and a centralized monitoring thereof. Established policies and procedures should provide for routine monitoring and evaluation of adopted internal control policies and procedures to ensure requirements are met. Moreover, we recommend additional review and approval of journal entries posted within the accounting system through grants managers and officials reclassifying from original postings and approvals. We have been informed by management that a grants manual has been implemented during fiscal year 2023.
Finding 2022-002
Criteria: OMB guidelines generally requires the District's Single Audit to be completed and filed by March 31 of the following year (march 31, 2023). Condition: The District was unable to meet the filing deadline in the current year. Cause: The District was not timely with the audit. Effect: The District's filing is considered late by OMB. Auditor's Recommendation: We recommend the District work to meet the required filing deadline.