2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
2024-004 – Material Weakness and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2023-004) U.S. Department of Agriculture Passed through State of Connecticut Department of Education Child Nutrition Cluster Assistance Listing Number: 10.553 Program Name: School Breakfast Program Assistance Listing Number: 10.555 Program Name: National School Lunch Program Assistance Listing Number: 10.560 Program Name: State Administrative Expenses for Child Nutrition Assistance Listing Number: 10.649 Program Name: COVID-19 Pandemic Electronic Benefit (P-EBT) Administrative Costs Department of Homeland Security Passed through the State of Connecticut Emergency Management and Homeland Security Assistance Listing Number: 97.042 Program Name: Emergency Management Performance Grant U.S. Department of Education Passed through the State of Connecticut Department of Education Assistance Listing Number: 84.010 Program Name: Title I Grants to Local Education Agencies Special Education Cluster (IDEA) Assistance Listing Number: 84.027 Program Name: Special Education Grants to States Assistance Listing Number: 84.027 Program Name: COVID-19 Special Education Grants to States Assistance Listing Number: 84.173 Program Name: Special Education Preschool Grants Assistance Listing Number: 84.173 Program Name: COVID-19 Special Education Preschool Grants Assistance Listing Number: 84.048 Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.365 Program Name: English Language Acquisition to State Grants Assistance Listing Number: 84.367 Program Name: Supporting Effective Instruction State Grants Assistance Listing Number: 84.424 Program Name: Student Support and Academic Enrichment Program Education Stabilization Fund: Assistance Listing Number: 84.425D Program Name: COVID-19 Elementary and Secondary School Relief Fund (ESSER) Assistance Listing Number: 84.425U Program Name: COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) U.S. Department of Health and Human Services Passed through the State Department of Public Health Assistance Listing Number: 93.268 Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.323 Program Name: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases U.S. Department of Treasury Passed through the State of Connecticut Department of Education and the State Office of Early Childhood Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery FundsCriteria: Committee of Sponsoring Organizations (COSO) Framework – control activities: Proper review of the schedule of expenditures of federal awards (SEFA) and schedule of expenditure of state awards (SESA) includes the accuracy and completeness of the schedules. The SEFA and SESA balance should be reconciled to the basic financial statements which are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP).The Uniform Guidance (2 CFR 200.510 (b) requires the auditee (the Town) to prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: We identified 16 federal programs and 9 state programs requiring adjustment to the reported expenditures. We identified 4 programs included on the SEFA under the incorrect oversight agency. We also identified 2 programs missing from the SEFA. The Town failed to adequately perform a reconciliation of the SEFA and SESA to the financial statements. In addition, during testing of allowable costs, we discovered $98,252 of costs pertaining to FY2023 transactions that were included in the FY2024 SEFA, with a projected total error of $185,755. Cause: Grant management and reporting is not centralized within the Town and are left to the individual departments. Underlying accounting records are maintained on a budgetary basis until year end-reporting. Additionally, management as well as department heads are unfamiliar with grant accounting in accordance with U.S. GAAP. Effect or potential effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. Additionally, an inaccurate SEFA/SESA can result in incorrect identification of major programs leading to further delays and inefficiencies in the audit. Recommendation: We recommend that Town management, in coordination with the departments; establish policy and procedures to help to make certain all federal and state expended funds are captured timely and appropriately in the correct fiscal year in the SEFA and SESA. Questioned costs: None Context: See condition above. Repeat finding: This is a repeat of finding 2023-001. View of responsible official: We agree with the finding. See corrective action plan.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: Title 2 of the Code of Federal Regulations (CFR) 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) specifies that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During the audit, it was noted that Solvista Health does not reconcile federal awards with the expenditures used and revenue earned. Additionally, Solvista Health did not prepare an accurate SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures and related revenue, along with the absence of an accurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and non-compliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: 2 CFR 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) mandates that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During our audit procedures performed over the current year SEFA, it was noted that Solvista Health improperly excluded expenditures for two federal awards from its June 30, 2023 SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures, along with an incomplete and inaccurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and noncompliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Additionally, the omission of federal awards from the June 30, 2023 SEFA resulted in noncompliance with federal reporting requirements and inaccurate representation of Solvista Health’s federal award activity. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Criteria or Specific Requirement: 2 CFR 200.302(b)(4) requires non-federal entities to maintain effective internal control over federal programs. Specifically, the organization must reconcile its federal awards with expenditures incurred and revenue received. Additionally, 2 CFR Part 200.510(b)(1-6) mandates that a Schedule of Expenditures of Federal Awards (SEFA) be prepared for each fiscal year in accordance with the applicable federal regulations. The SEFA must include, at a minimum, total federal awards expended for each individual federal program and must accurately report all federal expenditures received and expended during the fiscal year. Condition and Context: During our audit procedures performed over the current year SEFA, it was noted that Solvista Health improperly excluded expenditures for two federal awards from its June 30, 2023 SEFA. Questioned Costs: N/A Cause: Solvista Health’s accounting and internal control systems were not designed and implemented to ensure reconciliation of federal awards with expenditures and revenue, and the preparation of an accurate SEFA. Effect: Failure to reconcile federal awards with expenditures, along with an incomplete and inaccurate SEFA, could lead to incorrect reporting of federal funds, misstatement of financial information, and noncompliance with federal requirements. This represents a potential risk for improper use of federal funds and an inability to meet compliance and reporting obligations. Additionally, the omission of federal awards from the June 30, 2023 SEFA resulted in noncompliance with federal reporting requirements and inaccurate representation of Solvista Health’s federal award activity. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend Solvista Health design and implement internal control procedures to reconcile federal awards with the expenditures and revenue received to ensure completeness and accuracy in financial reporting. Additionally, management should prepare and maintain an accurate SEFA in accordance with 2 CFR 200.510 to ensure proper documentation and compliance with federal reporting requirements. Additionally, we recommend that Solvista Health train appropriate personnel on the requirements related to federal award reconciliations and SEFA preparation to mitigate the risk of noncompliance in the future.
Condition: The Organization tracks grants by individual cost-centers, which allows for total revenue and total expenditures by grant to be easily identifiable. In preparation of the Schedule of Expenditures of Federal Awards (SEFA), the Organization did not include a significant grant that is sourced from federal funds and required for testing. Criteria: Section 2 CFR 200.510(b) of the Uniform Guidance requires that an auditee prepare a schedule of expenditures of federal awards, which includes individual federal programs by federal agency and total federal awards expended for each individual federal program and Assistance Listing Number. Management is responsible for establishing and maintaining an effective system of internal control to allow for complete and accurate preparation of the SEFA. Cause: The Organization received a new one-time agreement during 2024, and the granting agency did not provide sufficient information for the Organization to clarify the funds were derived from federal funds. As such, the finance team did not include the grant expenditures in the schedule of expenditures of federal awards. Effect: Inaccurate reporting of federal expenditures could result inaccurate major program determinations, risk assessments, identification of compliance requirements, and ultimately incomplete reporting of federal funds expended to granting agencies. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Findings From Prior Year: No. Recommendation: We recommend management review all new grant agreements for indicators of federal awards (such as an Assistance Listing or CFDA number, references to federal regulations, references to federal laws or bills, etc.), and communicate with granting agencies for clarity. We recommend management receive confirmation in writing from any granting agencies about the source of any grants, when there is doubt about whether a grant is federally-sourced or not. Management Response: Management agrees with the recommendation and will ensure both program and financial staff understand the importance of determining the source of new grant funds, to ensure the schedule of expenditure of federal awards is accurately prepared.
PREPARATION OF SCHEDULE OF EXPENDITURES AND FEDERAL AWARDS QUESTIONED COSTS: N/A Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants along with the amount of funds disbursed to sub-recipients. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the identification of federal expenditures, timely and accurate preparation and review of the amounts reported on the SEFA. Condition: The initial SEFA prepared by the School Bord’s did not accurately include or identify all the federal award expenditures. The initial SEFA provided for audit included $119,736,508 of expenditures while the final SEFA included $186,491,326. This finding is repeated from the prior year. See the Summary Schedule of Prior Year Findings and Questioned Cost item 2023-003. Universe/ Population: None Sample size: None Cause: The grant awards or agreements were not properly interpreted or reviewed to identify or determine the proper amount to be reported as expenditures or SEFA. The 2 CFR Part 200, Appendix XI, Compliance Supplement publishes and distributed by the President of the United States’ Office of Management and Budget includes requirements for SEFA reporting that were not complied with. Effect: The SEFA provided to us for audit did not contain all the federal programs or the correct amounts of federal expenditures based on the terms of the grant awards and requirements to reporting on some of the federal programs reported. Inaccuracies or excluding information on the SEFA causes delays in completing the single audit and risks filing a SEFA that is incomplete or inaccurate. In addition, auditors may not identify and test the correct major federal programs in accordance with the Uniform Guidance. Recommendation: The School Board should strengthen its controls including its review and approval processes over the identification of federal programs, and the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal expenditures. View of Responsible Official: Management agrees with finding. Disaster Grants through FEMA are managed by rules and processes that are not easily accounted for in traditional accounting systems. Procedures will be strengthened to fully and accurately identify all federal program expenditures and record in the appropriate accounting funds.
Assistance Listing Number, Federal Agency, and Program Name 21.011, U.S. Department of the Treasury Capital Magnet Fund Federal Award Identification Number and Year Year ended June 30, 2024 Pass through Entity Ohio Department of Development Supportive Housing Program Finding Type Significant deficiency Repeat Finding No Criteria Per 2 CFR Section 200.510(b), the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with Section 200.502. Condition The expenditures were reported for the Capital Magnet Fund throughout the award period from the year ended June 30, 2019 to the year ended June 30, 2024 on the schedule of expenditures of federal awards (SEFA) but did not accurately report the amount of administrative expenditures incurred during the performance period, and, therefore, the SEFA was not complete and accurate for the year ended June 30, 2019 to the year ended June 30, 2024. Questioned Costs None If Questioned Costs are Not Determinable, Description of Why Known Questioned Costs were Undetermined or Otherwise Could Not be Reported N/A Identification of How Questioned Costs Were Computed N/A Context The Organization did not accurately report the administration costs on the SEFA. The Organization incorrectly omitted $375,000 of administration costs that were incurred during the year ended June 30, 2019; however, management implemented controls during the year ended June 30, 2024 that discovered the error, and, therefore, the $375,000 of omitted costs were included on the SEFA during the year ended June 30, 2024. Cause and Effect The Organization did not review all previously reported expenditures on the schedule of expenditures of federal awards for the Capital Magnet Program over the award period and omitted $375,000 of expenditures related to funding received from the Capital Magnet Fund for administrative costs. Recommendation We recommend the Organization implement a process and controls to have additional review of the SEFA compared to the Capital Magnet Performance Report to ensure the expenditures on the SEFA are complete and accurate and any errors are discovered and corrected timely. Views of Responsible Officials and Corrective Action Plan Management has implemented procedures and controls to ensure reports are reviewed prior to submission and distributed funds are reported properly and in the correct period.
Reference Number 2024-005 – Incomplete Schedule of Expenditures of Federal Awards Evaluation of Finding Material Weakness and Noncompliance – Various Federal Programs Criteria According to the Government Auditing Standards (Yellow Book) and the Uniform Guidance, 2 CFR Part 200, Subpart F—Audit Requirements, sections 200.508 and 200.510, entities receiving federal awards must prepare and submit a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) as part of their annual financial reporting. This schedule is crucial for auditors to determine major programs and conduct the necessary audits in compliance with federal regulations. Condition The City failed to provide a complete SEFA for the fiscal year, leading to inaccuracies pertaining to the ARPA program. This omission resulted in a direct impact on the determination of major programs. Cause The incomplete SEFA was caused by a lack of oversight and insufficient internal controls within the City's financial management department. Effect or Potential Effect The failure to provide a complete SEFA has significant implications, including: • Inaccurate determination of major programs, which can affect the scope and quality of the audit process. • Increased risk of non-compliance with federal regulations, potentially leading to financial penalties and loss of federal funding. Context The City did not submit a complete SEFA for the year ended June 30, 2024, as required by federal guidelines. This incomplete reporting could compromise transparency, affect audit procedures, and hinder compliance with federal regulations. Repeat Finding Yes, in relation to reconciliation of grant activity. Recommendation To address this material weakness, the following actions are recommended: • Develop detailed procedures and timelines: Establish and enforce comprehensive procedures and timelines for the preparation and submission of the SEFA to ensure completeness and accuracy. • Enhance staffing and resources: Allocate adequate staffing and resources to the financial management department to support the accurate compilation and timely submission of the SEFA. • Provide comprehensive training: Offer training to financial management staff on the requirements and importance of the SEFA, including techniques for ensuring its accuracy and completeness.. • Regularly audit the SEFA preparation process: Conduct regular audits of the SEFA preparation process to ensure compliance with established policies and procedures and address any deficiencies promptly. This should be completed monthly and at a minimum quarterly. By implementing these recommendations, the City can strengthen its internal controls, improve the accuracy of its financial reporting, and ensure compliance with Government Auditing Standards and other regulatory requirements. Management Response Management agrees with the finding and recommendations. The City will begin to implement policies and procedures to assist with monthly reconciliations and review processes to mitigate these errors in the future. Reference Number 2024-005 – Incomplete Schedule of Expenditures of Federal Awards Material Weakness and Noncompliance Assistance Listing Number: All Federal Programs reported on the SEFA Criteria Refer to finding 2024-005 in section II above. Condition Refer to finding 2024-005 in section II above. Cause of Condition Refer to finding 2024-005 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-005 in section II above. Questioned costs None. Context Refer to finding 2024-005 in section II above. Repeat Finding Refer to finding 2024-005 in section II above. Recommendation Refer to finding 2024-005 in section II above. Management Response Refer to finding 2024-005 in section II above.
Reference Number 2024-005 – Incomplete Schedule of Expenditures of Federal Awards Evaluation of Finding Material Weakness and Noncompliance – Various Federal Programs Criteria According to the Government Auditing Standards (Yellow Book) and the Uniform Guidance, 2 CFR Part 200, Subpart F—Audit Requirements, sections 200.508 and 200.510, entities receiving federal awards must prepare and submit a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) as part of their annual financial reporting. This schedule is crucial for auditors to determine major programs and conduct the necessary audits in compliance with federal regulations. Condition The City failed to provide a complete SEFA for the fiscal year, leading to inaccuracies pertaining to the ARPA program. This omission resulted in a direct impact on the determination of major programs. Cause The incomplete SEFA was caused by a lack of oversight and insufficient internal controls within the City's financial management department. Effect or Potential Effect The failure to provide a complete SEFA has significant implications, including: • Inaccurate determination of major programs, which can affect the scope and quality of the audit process. • Increased risk of non-compliance with federal regulations, potentially leading to financial penalties and loss of federal funding. Context The City did not submit a complete SEFA for the year ended June 30, 2024, as required by federal guidelines. This incomplete reporting could compromise transparency, affect audit procedures, and hinder compliance with federal regulations. Repeat Finding Yes, in relation to reconciliation of grant activity. Recommendation To address this material weakness, the following actions are recommended: • Develop detailed procedures and timelines: Establish and enforce comprehensive procedures and timelines for the preparation and submission of the SEFA to ensure completeness and accuracy. • Enhance staffing and resources: Allocate adequate staffing and resources to the financial management department to support the accurate compilation and timely submission of the SEFA. • Provide comprehensive training: Offer training to financial management staff on the requirements and importance of the SEFA, including techniques for ensuring its accuracy and completeness.. • Regularly audit the SEFA preparation process: Conduct regular audits of the SEFA preparation process to ensure compliance with established policies and procedures and address any deficiencies promptly. This should be completed monthly and at a minimum quarterly. By implementing these recommendations, the City can strengthen its internal controls, improve the accuracy of its financial reporting, and ensure compliance with Government Auditing Standards and other regulatory requirements. Management Response Management agrees with the finding and recommendations. The City will begin to implement policies and procedures to assist with monthly reconciliations and review processes to mitigate these errors in the future. Reference Number 2024-005 – Incomplete Schedule of Expenditures of Federal Awards Material Weakness and Noncompliance Assistance Listing Number: All Federal Programs reported on the SEFA Criteria Refer to finding 2024-005 in section II above. Condition Refer to finding 2024-005 in section II above. Cause of Condition Refer to finding 2024-005 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-005 in section II above. Questioned costs None. Context Refer to finding 2024-005 in section II above. Repeat Finding Refer to finding 2024-005 in section II above. Recommendation Refer to finding 2024-005 in section II above. Management Response Refer to finding 2024-005 in section II above.
Reference Number 2024-005 – Incomplete Schedule of Expenditures of Federal Awards Evaluation of Finding Material Weakness and Noncompliance – Various Federal Programs Criteria According to the Government Auditing Standards (Yellow Book) and the Uniform Guidance, 2 CFR Part 200, Subpart F—Audit Requirements, sections 200.508 and 200.510, entities receiving federal awards must prepare and submit a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) as part of their annual financial reporting. This schedule is crucial for auditors to determine major programs and conduct the necessary audits in compliance with federal regulations. Condition The City failed to provide a complete SEFA for the fiscal year, leading to inaccuracies pertaining to the ARPA program. This omission resulted in a direct impact on the determination of major programs. Cause The incomplete SEFA was caused by a lack of oversight and insufficient internal controls within the City's financial management department. Effect or Potential Effect The failure to provide a complete SEFA has significant implications, including: • Inaccurate determination of major programs, which can affect the scope and quality of the audit process. • Increased risk of non-compliance with federal regulations, potentially leading to financial penalties and loss of federal funding. Context The City did not submit a complete SEFA for the year ended June 30, 2024, as required by federal guidelines. This incomplete reporting could compromise transparency, affect audit procedures, and hinder compliance with federal regulations. Repeat Finding Yes, in relation to reconciliation of grant activity. Recommendation To address this material weakness, the following actions are recommended: • Develop detailed procedures and timelines: Establish and enforce comprehensive procedures and timelines for the preparation and submission of the SEFA to ensure completeness and accuracy. • Enhance staffing and resources: Allocate adequate staffing and resources to the financial management department to support the accurate compilation and timely submission of the SEFA. • Provide comprehensive training: Offer training to financial management staff on the requirements and importance of the SEFA, including techniques for ensuring its accuracy and completeness.. • Regularly audit the SEFA preparation process: Conduct regular audits of the SEFA preparation process to ensure compliance with established policies and procedures and address any deficiencies promptly. This should be completed monthly and at a minimum quarterly. By implementing these recommendations, the City can strengthen its internal controls, improve the accuracy of its financial reporting, and ensure compliance with Government Auditing Standards and other regulatory requirements. Management Response Management agrees with the finding and recommendations. The City will begin to implement policies and procedures to assist with monthly reconciliations and review processes to mitigate these errors in the future. Reference Number 2024-005 – Incomplete Schedule of Expenditures of Federal Awards Material Weakness and Noncompliance Assistance Listing Number: All Federal Programs reported on the SEFA Criteria Refer to finding 2024-005 in section II above. Condition Refer to finding 2024-005 in section II above. Cause of Condition Refer to finding 2024-005 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-005 in section II above. Questioned costs None. Context Refer to finding 2024-005 in section II above. Repeat Finding Refer to finding 2024-005 in section II above. Recommendation Refer to finding 2024-005 in section II above. Management Response Refer to finding 2024-005 in section II above.
Reference Number 2024-005 – Incomplete Schedule of Expenditures of Federal Awards Evaluation of Finding Material Weakness and Noncompliance – Various Federal Programs Criteria According to the Government Auditing Standards (Yellow Book) and the Uniform Guidance, 2 CFR Part 200, Subpart F—Audit Requirements, sections 200.508 and 200.510, entities receiving federal awards must prepare and submit a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) as part of their annual financial reporting. This schedule is crucial for auditors to determine major programs and conduct the necessary audits in compliance with federal regulations. Condition The City failed to provide a complete SEFA for the fiscal year, leading to inaccuracies pertaining to the ARPA program. This omission resulted in a direct impact on the determination of major programs. Cause The incomplete SEFA was caused by a lack of oversight and insufficient internal controls within the City's financial management department. Effect or Potential Effect The failure to provide a complete SEFA has significant implications, including: • Inaccurate determination of major programs, which can affect the scope and quality of the audit process. • Increased risk of non-compliance with federal regulations, potentially leading to financial penalties and loss of federal funding. Context The City did not submit a complete SEFA for the year ended June 30, 2024, as required by federal guidelines. This incomplete reporting could compromise transparency, affect audit procedures, and hinder compliance with federal regulations. Repeat Finding Yes, in relation to reconciliation of grant activity. Recommendation To address this material weakness, the following actions are recommended: • Develop detailed procedures and timelines: Establish and enforce comprehensive procedures and timelines for the preparation and submission of the SEFA to ensure completeness and accuracy. • Enhance staffing and resources: Allocate adequate staffing and resources to the financial management department to support the accurate compilation and timely submission of the SEFA. • Provide comprehensive training: Offer training to financial management staff on the requirements and importance of the SEFA, including techniques for ensuring its accuracy and completeness.. • Regularly audit the SEFA preparation process: Conduct regular audits of the SEFA preparation process to ensure compliance with established policies and procedures and address any deficiencies promptly. This should be completed monthly and at a minimum quarterly. By implementing these recommendations, the City can strengthen its internal controls, improve the accuracy of its financial reporting, and ensure compliance with Government Auditing Standards and other regulatory requirements. Management Response Management agrees with the finding and recommendations. The City will begin to implement policies and procedures to assist with monthly reconciliations and review processes to mitigate these errors in the future. Reference Number 2024-005 – Incomplete Schedule of Expenditures of Federal Awards Material Weakness and Noncompliance Assistance Listing Number: All Federal Programs reported on the SEFA Criteria Refer to finding 2024-005 in section II above. Condition Refer to finding 2024-005 in section II above. Cause of Condition Refer to finding 2024-005 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-005 in section II above. Questioned costs None. Context Refer to finding 2024-005 in section II above. Repeat Finding Refer to finding 2024-005 in section II above. Recommendation Refer to finding 2024-005 in section II above. Management Response Refer to finding 2024-005 in section II above.
Reference Number 2024-005 – Incomplete Schedule of Expenditures of Federal Awards Evaluation of Finding Material Weakness and Noncompliance – Various Federal Programs Criteria According to the Government Auditing Standards (Yellow Book) and the Uniform Guidance, 2 CFR Part 200, Subpart F—Audit Requirements, sections 200.508 and 200.510, entities receiving federal awards must prepare and submit a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) as part of their annual financial reporting. This schedule is crucial for auditors to determine major programs and conduct the necessary audits in compliance with federal regulations. Condition The City failed to provide a complete SEFA for the fiscal year, leading to inaccuracies pertaining to the ARPA program. This omission resulted in a direct impact on the determination of major programs. Cause The incomplete SEFA was caused by a lack of oversight and insufficient internal controls within the City's financial management department. Effect or Potential Effect The failure to provide a complete SEFA has significant implications, including: • Inaccurate determination of major programs, which can affect the scope and quality of the audit process. • Increased risk of non-compliance with federal regulations, potentially leading to financial penalties and loss of federal funding. Context The City did not submit a complete SEFA for the year ended June 30, 2024, as required by federal guidelines. This incomplete reporting could compromise transparency, affect audit procedures, and hinder compliance with federal regulations. Repeat Finding Yes, in relation to reconciliation of grant activity. Recommendation To address this material weakness, the following actions are recommended: • Develop detailed procedures and timelines: Establish and enforce comprehensive procedures and timelines for the preparation and submission of the SEFA to ensure completeness and accuracy. • Enhance staffing and resources: Allocate adequate staffing and resources to the financial management department to support the accurate compilation and timely submission of the SEFA. • Provide comprehensive training: Offer training to financial management staff on the requirements and importance of the SEFA, including techniques for ensuring its accuracy and completeness.. • Regularly audit the SEFA preparation process: Conduct regular audits of the SEFA preparation process to ensure compliance with established policies and procedures and address any deficiencies promptly. This should be completed monthly and at a minimum quarterly. By implementing these recommendations, the City can strengthen its internal controls, improve the accuracy of its financial reporting, and ensure compliance with Government Auditing Standards and other regulatory requirements. Management Response Management agrees with the finding and recommendations. The City will begin to implement policies and procedures to assist with monthly reconciliations and review processes to mitigate these errors in the future. Reference Number 2024-005 – Incomplete Schedule of Expenditures of Federal Awards Material Weakness and Noncompliance Assistance Listing Number: All Federal Programs reported on the SEFA Criteria Refer to finding 2024-005 in section II above. Condition Refer to finding 2024-005 in section II above. Cause of Condition Refer to finding 2024-005 in section II above. Effect or Potential Effect of Condition Refer to finding 2024-005 in section II above. Questioned costs None. Context Refer to finding 2024-005 in section II above. Repeat Finding Refer to finding 2024-005 in section II above. Recommendation Refer to finding 2024-005 in section II above. Management Response Refer to finding 2024-005 in section II above.
Condition: During our audit we reviewed the expenditures included on the Organization’s schedule of expenditures of federal awards. We noted the Organization did not include all federal expenditures incurred during the reporting period. Criteria: As described in 2 CFR § 200.510(b) the Organization is required to prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements. This schedule must include total federal awards expended. Cause: The Organization utilizes an outsourced accountants to assist with the management of the Organization’s finances. During the year the Organization received a grant related to the construction of a community center. The Organization hired another contractor to assist with the construction of the community center. There are multiple entities with unique understanding of the finances tied to the federal program selected for testing. Effect: Due to not including all federal expenditures on the schedule of expenditures of federal awards this caused the schedule to be understated to a material degree. Recommendation: After thoroughly reviewing the unique circumstance that led to this audit finding, we have determined that it is highly unlikely to recur. Given the organization's strong compliance history and familiarity with SEFA reporting under Uniform Guidance, we do not see a cost-effective benefit to revamping internal controls specifically for this issue. Instead, we recommend continuing to; review government awards, provide refresher trainings to staff, and conduct periodic reviews of internal controls to ensure ongoing compliance. These measures will effectively address the finding without incurring unnecessary costs. Views of Resposible Officials: Management agrees with the finding.
2024-001 Improve Internal Controls over the Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Program(s) Information Federal Agency: Environmental Protection Agency Award Name: Drinking Water State Revolving Fund Assistance Listing Number: 66.468 Award Year: 2024 Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Per 2 CFR 200.510(b), auditees must prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must identify all federal awards expended, organized by federal program and Assistance Listing Number (ALN), and include all required disclosures. Condition and Context While preparing its draft SEFA, the City incorrectly classified $3,473,784 in federal expenditures as Drinking Water State Revolving Fund when those expenditures should have been classified as Coronavirus State and Local Fiscal Recovery Fund program expenditures. As a result of the initial improper expenditure amounts, the auditors’ assessment over major program determination was impacted. The misclassification was limited to the preparation of the SEFA and there was no impact on amounts reported to and/or claims for reimbursement from the respective funding source(s). This classification error was corrected for purposes of the final SEFA. Cause The City did not have adequate controls in place in order to ensure the complete and accurate preparation of the SEFA, including reconciling federal expenditures reported in the general ledger with the information included on the SEFA and verifying the correct allocation to the proper federal programs. SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) Effect or Potential Effect Due to the weakness in internal controls noted above, there is a risk that amounts reported on the SEFA are not complete and accurate. The lack of a complete and accurate SEFA may impact the determination if a single audit is required, as well as major program determination. Recommendation The City should ensure that adequate procedures and controls are in place to ensure that the SEFA is complete and accurate. This should include controls requiring the reconciliation of federal expenditures to the appropriate supporting documentation (e.g., general ledger, grant reports, etc.) and formal review by a knowledgeable individual following preparation of the SEFA. Views of Responsible Official Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
Finding 2024-004 Accounting for Grants, Schedule of Expenditures of Federal Awards, and Fiscal Man-agement (Material Weakness) Assistance Listing Number and Title: 84.041 Impact Aid Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 84.010 Title I Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 10.553 and 10.555 National School Lunch Breakfast and Lunch Name of Federal Agency: U.S. Department of Agriculture Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Sched-ule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the to-tal Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipi-ents. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger, and contained inaccuracies, including: • Overclaimed revenues for Title I • Inability to provide sufficient documentation of Impact Aid revenues and specific Impact Aid program infor-mation • Incorrect reporting of state and federal revenues for National School Lunch Program. Cause: The District does not have effective internal control over the preparation of the Schedule of Expenditures of Federal Awards. The district did not reconcile the expenditures reported on the SEFA with the amounts reported on the district's general ledger. Effect or Potential Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected and corrected. Because the SEFA was completed incorrectly, and not reconciled to the general ledger, the financial statements were materially misstated prior to the auditor's adjust-ments. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting re-sulted in the following: SEFA was originally presented for auditors with incorrect information, and not reconciled to the general ledger Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or cor-rect errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and re-view the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identi-fied and reported accurately on future SEFAs. Planned Implementation Date: August 1, 2025 Responsible Person: District Business Manager Section IV—Summary Schedule of Prior Audit Findings There were no findings for the fiscal year ended June 30, 2023.
Finding 2024-004 Accounting for Grants, Schedule of Expenditures of Federal Awards, and Fiscal Man-agement (Material Weakness) Assistance Listing Number and Title: 84.041 Impact Aid Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 84.010 Title I Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 10.553 and 10.555 National School Lunch Breakfast and Lunch Name of Federal Agency: U.S. Department of Agriculture Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Sched-ule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the to-tal Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipi-ents. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger, and contained inaccuracies, including: • Overclaimed revenues for Title I • Inability to provide sufficient documentation of Impact Aid revenues and specific Impact Aid program infor-mation • Incorrect reporting of state and federal revenues for National School Lunch Program. Cause: The District does not have effective internal control over the preparation of the Schedule of Expenditures of Federal Awards. The district did not reconcile the expenditures reported on the SEFA with the amounts reported on the district's general ledger. Effect or Potential Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected and corrected. Because the SEFA was completed incorrectly, and not reconciled to the general ledger, the financial statements were materially misstated prior to the auditor's adjust-ments. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting re-sulted in the following: SEFA was originally presented for auditors with incorrect information, and not reconciled to the general ledger Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or cor-rect errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and re-view the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identi-fied and reported accurately on future SEFAs. Planned Implementation Date: August 1, 2025 Responsible Person: District Business Manager Section IV—Summary Schedule of Prior Audit Findings There were no findings for the fiscal year ended June 30, 2023.
Finding 2024-004 Accounting for Grants, Schedule of Expenditures of Federal Awards, and Fiscal Man-agement (Material Weakness) Assistance Listing Number and Title: 84.041 Impact Aid Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 84.010 Title I Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 10.553 and 10.555 National School Lunch Breakfast and Lunch Name of Federal Agency: U.S. Department of Agriculture Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Sched-ule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the to-tal Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipi-ents. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger, and contained inaccuracies, including: • Overclaimed revenues for Title I • Inability to provide sufficient documentation of Impact Aid revenues and specific Impact Aid program infor-mation • Incorrect reporting of state and federal revenues for National School Lunch Program. Cause: The District does not have effective internal control over the preparation of the Schedule of Expenditures of Federal Awards. The district did not reconcile the expenditures reported on the SEFA with the amounts reported on the district's general ledger. Effect or Potential Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected and corrected. Because the SEFA was completed incorrectly, and not reconciled to the general ledger, the financial statements were materially misstated prior to the auditor's adjust-ments. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting re-sulted in the following: SEFA was originally presented for auditors with incorrect information, and not reconciled to the general ledger Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or cor-rect errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and re-view the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identi-fied and reported accurately on future SEFAs. Planned Implementation Date: August 1, 2025 Responsible Person: District Business Manager Section IV—Summary Schedule of Prior Audit Findings There were no findings for the fiscal year ended June 30, 2023.
Finding 2024-004 Accounting for Grants, Schedule of Expenditures of Federal Awards, and Fiscal Man-agement (Material Weakness) Assistance Listing Number and Title: 84.041 Impact Aid Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 84.010 Title I Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 10.553 and 10.555 National School Lunch Breakfast and Lunch Name of Federal Agency: U.S. Department of Agriculture Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Sched-ule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the to-tal Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipi-ents. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger, and contained inaccuracies, including: • Overclaimed revenues for Title I • Inability to provide sufficient documentation of Impact Aid revenues and specific Impact Aid program infor-mation • Incorrect reporting of state and federal revenues for National School Lunch Program. Cause: The District does not have effective internal control over the preparation of the Schedule of Expenditures of Federal Awards. The district did not reconcile the expenditures reported on the SEFA with the amounts reported on the district's general ledger. Effect or Potential Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected and corrected. Because the SEFA was completed incorrectly, and not reconciled to the general ledger, the financial statements were materially misstated prior to the auditor's adjust-ments. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting re-sulted in the following: SEFA was originally presented for auditors with incorrect information, and not reconciled to the general ledger Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or cor-rect errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and re-view the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identi-fied and reported accurately on future SEFAs. Planned Implementation Date: August 1, 2025 Responsible Person: District Business Manager Section IV—Summary Schedule of Prior Audit Findings There were no findings for the fiscal year ended June 30, 2023.
Finding 2024-004 Accounting for Grants, Schedule of Expenditures of Federal Awards, and Fiscal Man-agement (Material Weakness) Assistance Listing Number and Title: 84.041 Impact Aid Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 84.010 Title I Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 10.553 and 10.555 National School Lunch Breakfast and Lunch Name of Federal Agency: U.S. Department of Agriculture Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Sched-ule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the to-tal Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipi-ents. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger, and contained inaccuracies, including: • Overclaimed revenues for Title I • Inability to provide sufficient documentation of Impact Aid revenues and specific Impact Aid program infor-mation • Incorrect reporting of state and federal revenues for National School Lunch Program. Cause: The District does not have effective internal control over the preparation of the Schedule of Expenditures of Federal Awards. The district did not reconcile the expenditures reported on the SEFA with the amounts reported on the district's general ledger. Effect or Potential Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected and corrected. Because the SEFA was completed incorrectly, and not reconciled to the general ledger, the financial statements were materially misstated prior to the auditor's adjust-ments. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting re-sulted in the following: SEFA was originally presented for auditors with incorrect information, and not reconciled to the general ledger Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or cor-rect errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and re-view the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identi-fied and reported accurately on future SEFAs. Planned Implementation Date: August 1, 2025 Responsible Person: District Business Manager Section IV—Summary Schedule of Prior Audit Findings There were no findings for the fiscal year ended June 30, 2023.
Finding 2024-004 Accounting for Grants, Schedule of Expenditures of Federal Awards, and Fiscal Man-agement (Material Weakness) Assistance Listing Number and Title: 84.041 Impact Aid Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 84.010 Title I Name of Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 10.553 and 10.555 National School Lunch Breakfast and Lunch Name of Federal Agency: U.S. Department of Agriculture Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Sched-ule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the to-tal Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipi-ents. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger, and contained inaccuracies, including: • Overclaimed revenues for Title I • Inability to provide sufficient documentation of Impact Aid revenues and specific Impact Aid program infor-mation • Incorrect reporting of state and federal revenues for National School Lunch Program. Cause: The District does not have effective internal control over the preparation of the Schedule of Expenditures of Federal Awards. The district did not reconcile the expenditures reported on the SEFA with the amounts reported on the district's general ledger. Effect or Potential Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected and corrected. Because the SEFA was completed incorrectly, and not reconciled to the general ledger, the financial statements were materially misstated prior to the auditor's adjust-ments. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting re-sulted in the following: SEFA was originally presented for auditors with incorrect information, and not reconciled to the general ledger Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or cor-rect errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and re-view the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identi-fied and reported accurately on future SEFAs. Planned Implementation Date: August 1, 2025 Responsible Person: District Business Manager Section IV—Summary Schedule of Prior Audit Findings There were no findings for the fiscal year ended June 30, 2023.