Findings Citing § 200.512

Finding #2022-001 ? Material Weakness ? Accounting Recordkeeping All programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end consolidated financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1), certain tax returns, and certain grant agreements. Condition During the year ended June 30, 2022, management was unable to provide timely year end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The Organization?s Accounting/Finance Department experienced a backlog of recording transactions and invoicing during the year ended June 30, 2022. This resulted in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, Board members and funders. In addition, due to the delay in the reconciliation process, the Organization restated June 30, 2021 net asset balances to correct a misstatement and was unable to meet the required reporting deadlines noted in 2 CFR Section 200.512(a)(1), certain tax returns, and certain grant agreements. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization?s current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. The Organization is working with external consultants to improve the timeliness of reconciliations and audit preparation. We are continually making accounting policy changes which will correct some of the issues noted. Management is confident that the issues that have been noted will be rectified in the fiscal year ending June 30, 2023.

Finding #2022-001 ? Material Weakness ? Accounting Recordkeeping All programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end consolidated financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1), certain tax returns, and certain grant agreements. Condition During the year ended June 30, 2022, management was unable to provide timely year end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The Organization?s Accounting/Finance Department experienced a backlog of recording transactions and invoicing during the year ended June 30, 2022. This resulted in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, Board members and funders. In addition, due to the delay in the reconciliation process, the Organization restated June 30, 2021 net asset balances to correct a misstatement and was unable to meet the required reporting deadlines noted in 2 CFR Section 200.512(a)(1), certain tax returns, and certain grant agreements. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization?s current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. The Organization is working with external consultants to improve the timeliness of reconciliations and audit preparation. We are continually making accounting policy changes which will correct some of the issues noted. Management is confident that the issues that have been noted will be rectified in the fiscal year ending June 30, 2023.

Finding #2022-001 ? Material Weakness ? Accounting Recordkeeping All programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end consolidated financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1), certain tax returns, and certain grant agreements. Condition During the year ended June 30, 2022, management was unable to provide timely year end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The Organization?s Accounting/Finance Department experienced a backlog of recording transactions and invoicing during the year ended June 30, 2022. This resulted in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, Board members and funders. In addition, due to the delay in the reconciliation process, the Organization restated June 30, 2021 net asset balances to correct a misstatement and was unable to meet the required reporting deadlines noted in 2 CFR Section 200.512(a)(1), certain tax returns, and certain grant agreements. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization?s current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. The Organization is working with external consultants to improve the timeliness of reconciliations and audit preparation. We are continually making accounting policy changes which will correct some of the issues noted. Management is confident that the issues that have been noted will be rectified in the fiscal year ending June 30, 2023.

Finding #2022-001 ? Material Weakness ? Accounting Recordkeeping All programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end consolidated financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1), certain tax returns, and certain grant agreements. Condition During the year ended June 30, 2022, management was unable to provide timely year end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The Organization?s Accounting/Finance Department experienced a backlog of recording transactions and invoicing during the year ended June 30, 2022. This resulted in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, Board members and funders. In addition, due to the delay in the reconciliation process, the Organization restated June 30, 2021 net asset balances to correct a misstatement and was unable to meet the required reporting deadlines noted in 2 CFR Section 200.512(a)(1), certain tax returns, and certain grant agreements. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization?s current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. The Organization is working with external consultants to improve the timeliness of reconciliations and audit preparation. We are continually making accounting policy changes which will correct some of the issues noted. Management is confident that the issues that have been noted will be rectified in the fiscal year ending June 30, 2023.

2022-004 UNTIMELY FILING OF THE DATA COLLECTION FORM ? OTHER NONCOMPLIANCE FINDING TYPE: Other Noncompliance Finding 2022-004 Federal Program: Child Nutrition Cluster ALN: 10.555 Federal Award Number(s) and Year(s): 213ND309N1199, 2022 Federal Agency: U.S. Department of Agriculture Questioned Cost: $0 Condition The Kindred Public School District No. 2 did not submit its Data Collection Form to the Federal Audit Clearinghouse within nine months of its year-end June 30, 2022. Effect The Kindred Public School District No. 2 is not in compliance with the filing requirement deadline. Cause Audited financial statements were not complete; therefore, the Data Collection Form could not be filed timely. Criteria Uniform Guidance 2 CFR 200.512(a) states in part: ?The audit must be completed and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.? Prior Recommendation No. Recommendation We recommend the Kindred Public School District No. 2 comply with the Uniform Guidance 2 CFR 200.512(a) by submitting the Data Collection Form within the allowable time requirements. Kindred Public School District No. 2?s Response See Corrective Action Plan

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Condition ? The District did not file the June 2022 data collection form within the prescribed timeframe set forth by the Office of Management and Budget. Criteria ? The Office of Management and Budget (OMB) Title 2 Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.512 requires auditees to submit a completed form SFSAC, along with one complete reporting package, to the Federal Audit Clearinghouse. Cause ? The audit for fiscal year ended June 30, 2022, was not completed until May 8, 2023. Effect ? The District cannot be considered a low-risk auditee for the year ended June 30, 2023. Recommendation ? Ensure that the audit is completed in time for the submission deadline in future audit years. Client Response ? The District is aware of the importance of filing the data collection forms within the prescribed amount of time and is working to file timely for the fiscal year end 2023 audit.

Finding Number: 2022-002 Repeat Finding: No Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Federal Agency: U.S. Department of Interior Federal Award Number: A19AV00933 Pass-Through Agency: Bureau of Indian Education Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Reporting CRITERIA The Single Audit Reporting Package must have a report submitted nine months after fiscal yearend (2 CFR 200.512). The Hall is required to report cumulative program outlays and program income on the Federal Financial Report, SF-425. Quarterly and semi-annual interim reports shall be submitted no later than 30 days after the end of each reporting period. CONDITION The Hall did not provide all of the audit information for fiscal year 2021-22 in a timely manner to allow sufficient time for the audit to be completed by the deadline. The Hall did not follow federal reporting requirements. CAUSE Hall policies were not always followed or controls were not in place to ensure complete and accurate information could be provided timely. EFFECT The Hall was not always in compliance with federal guidelines. CONTEXT The sample was not intended to be, and was not, a statistically valid sample. The Hall did not provide all of the audit information for fiscal year 2021-22 in a timely manner to allow sufficient time for the audit to be submitted by the deadline. The SF-425 report for reporting period ending September 30, 2021 was not submitted within 30 days of the end of the reporting period. Amounts reported on the SF-425 reports include all income and expense for the Hall rather than just federal receipts and disbursements. In addition, the amounts reported reporting periods ending December 31, 2021, March 31, 2022, and June 30, 2022 were not cumulative. RECOMMENDATION The Hall should design and implement effective internal control procedures to timely close out the trial balance and provide all of the necessary audit evidence to ensure the general ledger, financial statements and related notes are free from material misstatements. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding Number: 2022-002 Repeat Finding: No Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Federal Agency: U.S. Department of Interior Federal Award Number: A19AV00933 Pass-Through Agency: Bureau of Indian Education Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Reporting CRITERIA The Single Audit Reporting Package must have a report submitted nine months after fiscal yearend (2 CFR 200.512). The Hall is required to report cumulative program outlays and program income on the Federal Financial Report, SF-425. Quarterly and semi-annual interim reports shall be submitted no later than 30 days after the end of each reporting period. CONDITION The Hall did not provide all of the audit information for fiscal year 2021-22 in a timely manner to allow sufficient time for the audit to be completed by the deadline. The Hall did not follow federal reporting requirements. CAUSE Hall policies were not always followed or controls were not in place to ensure complete and accurate information could be provided timely. EFFECT The Hall was not always in compliance with federal guidelines. CONTEXT The sample was not intended to be, and was not, a statistically valid sample. The Hall did not provide all of the audit information for fiscal year 2021-22 in a timely manner to allow sufficient time for the audit to be submitted by the deadline. The SF-425 report for reporting period ending September 30, 2021 was not submitted within 30 days of the end of the reporting period. Amounts reported on the SF-425 reports include all income and expense for the Hall rather than just federal receipts and disbursements. In addition, the amounts reported reporting periods ending December 31, 2021, March 31, 2022, and June 30, 2022 were not cumulative. RECOMMENDATION The Hall should design and implement effective internal control procedures to timely close out the trial balance and provide all of the necessary audit evidence to ensure the general ledger, financial statements and related notes are free from material misstatements. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding Number: 2022-002 Repeat Finding: No Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Federal Agency: U.S. Department of Interior Federal Award Number: A19AV00933 Pass-Through Agency: Bureau of Indian Education Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Reporting CRITERIA The Single Audit Reporting Package must have a report submitted nine months after fiscal yearend (2 CFR 200.512). The Hall is required to report cumulative program outlays and program income on the Federal Financial Report, SF-425. Quarterly and semi-annual interim reports shall be submitted no later than 30 days after the end of each reporting period. CONDITION The Hall did not provide all of the audit information for fiscal year 2021-22 in a timely manner to allow sufficient time for the audit to be completed by the deadline. The Hall did not follow federal reporting requirements. CAUSE Hall policies were not always followed or controls were not in place to ensure complete and accurate information could be provided timely. EFFECT The Hall was not always in compliance with federal guidelines. CONTEXT The sample was not intended to be, and was not, a statistically valid sample. The Hall did not provide all of the audit information for fiscal year 2021-22 in a timely manner to allow sufficient time for the audit to be submitted by the deadline. The SF-425 report for reporting period ending September 30, 2021 was not submitted within 30 days of the end of the reporting period. Amounts reported on the SF-425 reports include all income and expense for the Hall rather than just federal receipts and disbursements. In addition, the amounts reported reporting periods ending December 31, 2021, March 31, 2022, and June 30, 2022 were not cumulative. RECOMMENDATION The Hall should design and implement effective internal control procedures to timely close out the trial balance and provide all of the necessary audit evidence to ensure the general ledger, financial statements and related notes are free from material misstatements. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding 2022-002: Late Issuance of the 2022 Single Audit Reporting Package Federal Programs Applicable to all assistance listing numbers (ALN?s) and federal agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2022. Finding The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. Criteria Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Cause This was due to transition in the District?s Treasurer function in fiscal year 2022. Pension information, state grants, e-rate, and voided check transactions caused a net balance due from the Thornton Township School Treasurer that should have been included in the timely reconciliation of pooled cash and investments. Effect Noncompliance with the requirements of Uniform Guidance. Questioned Costs None Context The June 30, 2022 Single Audit package. Identification as a repeat finding, if applicable This is not a repeat finding. Recommendation We recommend that the District ensure timely filing of the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials The District accepts the finding. Procedures have been established to ensure all filings are done timely.

Finding No. 2022-001 Audit Requirements for Auditees ? Report Submission Federal program Clean Water State Revolving Fund Cluster: ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds Name of federal agency U.S. Environmental Protection Agency (EPA) Pass-through entity Puerto Rico Department of Natural and Environmental Resources Category Compliance/Internal Control Compliance requirements Other Criteria As required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), ? 200.512 Report submission (a) (1), ? the audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditors? report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day?. Condition found The data collection form and the reporting package for the year ended on June 30, 2022 was not submitted to the Federal Audit Clearinghouse within the timeframe prescribed by the Uniform Guidance. Cause Accounting and reporting processes are being delayed and thus, the information necessary to complete the financial statement audit procedures was not available within the timeframe prescribed by the Uniform Guidance. Effect As a result of this condition, the EPA may issue warnings and/or impose penalties to the Revolving Fund. Also, the EPA was prevented the use of accurate reporting data, which is critical for the effective administration of the federal program and for EPA budgetary policy analysis. Questioned cost None. Context N/A Identification of a repeat finding This is not a repeat finding from the immediate previous audit. Views of responsible officials and planned corrective actions The management of the Revolving Fund agree with this finding. Please refer to the corrective action plan section on page 44. Recommendation The data collection form and single audit package must be submitted within the required due dates. Also, we strongly suggest the accounting department to take whatever steps necessary to ensure that senior management receives current and accurate financial information on a timely basis. If it is determined that the department is understaffed, steps should be taken to alleviate this problem so that work can remain current without an undue hardship on any one employee. Once up to date, the accounting staff must consistently provide management with the accurate financial reports and information necessary to effectively manage the Revolving Fund?s operations

Finding Number: 2022-003 Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Description: Data Collection Form Late Filing Major Program: NATIONAL SCIENCE FOUNDATION Research Development Cluster (Direct) AL# 47.076 ? Education and Human Resources AL# 47.070 ? Computer and Information Science and Engineering Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Reporting Requirement Condition: The Organization did not submit the fiscal year ended June 30, 2022 data collection form and reporting package to the Federal Audit Clearinghouse in a timely manner. Criteria: The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor?s report or nine months after the end of the audit period. Cause: Due to staff illness and the sudden death of the lead finance staff, the Alliance?s June 30, 2022 audit was not completed prior to the due date. Effect: The Alliance was not in compliance with audit submission requirements, resulting in a non-material noncompliance and significant deficiency in internal controls over compliance. Recommendation: We recommend the Alliance implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.

Finding Number: 2022-003 Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Description: Data Collection Form Late Filing Major Program: NATIONAL SCIENCE FOUNDATION Research Development Cluster (Direct) AL# 47.076 ? Education and Human Resources AL# 47.070 ? Computer and Information Science and Engineering Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Reporting Requirement Condition: The Organization did not submit the fiscal year ended June 30, 2022 data collection form and reporting package to the Federal Audit Clearinghouse in a timely manner. Criteria: The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor?s report or nine months after the end of the audit period. Cause: Due to staff illness and the sudden death of the lead finance staff, the Alliance?s June 30, 2022 audit was not completed prior to the due date. Effect: The Alliance was not in compliance with audit submission requirements, resulting in a non-material noncompliance and significant deficiency in internal controls over compliance. Recommendation: We recommend the Alliance implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.

Condition: The data collection form for the audit year June 30, 2022 was not submitted to the Federal Audit Clearinghouse on a timely basis. Criteria: Per 2 CFR Part 200, Subpart F (2 CFR Section 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Effect: The compliance requirement for reporting was not met. Cause: Delays in audit timing caused by management's slow response to auditor's requests have resulted in the audit being constantly delayed. Recommendation: We recommend that management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit period. Management's Response: Management understands that the data collection was not submitted within 9 months of June 30th year end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.