Finding 2024-001 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Significant Deficiency Related to Internal Control over Compliance of the Major Program Condition: During our test of controls over compliance it was noted that one expense charged to the 2023 Hi Quality Instructional Materials grant major program was not an allowable expenses. Criteria: Costs charged to the 2023 Hi Quality Instructional Materials grant major program should meet the requirements as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Context: During our review of expenses charged to the 2023 Hi Quality Instructional Materials grant it was noted that one expense that was charged to the grant whose service period was outside the period of performance and thus an unallowable cost. Effect: Town of Bellingham was not in compliance with the allowable costs/ cost principals requirement as set forth by the Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Questioned Costs: $2,170.00 Cause: The District utilized the FY2023 Hi Quality Instructional Materials grant to fund subscription(s) that support organizational assessment data results for Social & Emotional learning, with the understanding that the subscription started during the grant's timeframe but did not consider that the subscription would extend beyond the grant period. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Bellingham follow procedures to ensure that expenditures charged to the grants are allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles) Responsible for Corrective Plan: Director of Finance Estimated Completion Date: September 1, 2025 Action Taken: The District will not utilize grant funds to support subscriptions that span outside of the grant-funding timeframe.