Finding 1170256 (2024-005)

Material Weakness Repeat Finding
Requirement
F
Questioned Costs
-
Year
2024
Accepted
2026-01-22

AI Summary

  • Core Issue: The Town failed to obtain necessary pre-approval for $70,424 in purchases related to alarm systems and security cameras.
  • Impacted Requirements: Compliance with OMB guidelines requiring prior approval for capital expenditures from the pass-through entity.
  • Recommended Follow-up: Establish procedures to ensure all grant documentation, including approvals, is properly maintained for future compliance.

Finding Text

2024-005 U.S. Department of Education Passed-through the Commonwealth of Massachusetts Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – ALN 84.425 Material Weakness in Internal Controls over Compliance Criteria: Per the 2024 OMB Compliance Supplement, capital expenditures for general and special purpose equipment purchases and improvements to land, buildings and equipment are subject to prior approval by the pass-through entity. Condition: The Schools’ files did not include documentation of pre-approval for the purchase and installation of alarm systems and security cameras. Cause: A lack of central grant recordkeeping for all federal awards. Effect: The Town did not comply with grant approval requirements for purchases totaling $70,424. Questioned Costs: None. Repeat Finding from Prior Year: No. Recommendation: The Town should implement procedures to maintain all required grant documentation, including pass-through agency approvals, for all grants. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Material Weakness in Internal Controls over Compliance Condition: The Schools’ files did not include documentation of pre-approval for the purchase and installation of alarm systems and security cameras. Corrective Action Planned: The District is in the process of implementing a standardized checklist and updated purchasing controls to ensure all federally funded equipment and facility-related purchases are properly documented before procurement. Relevant staff have been informed of the requirement, and no purchase orders for such items will be released without the required approvals. Anticipated Completion Date: March 31, 2026 Contact: Liz Latoria, School Director of Finance and Operations

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1170245 2024-004
    Material Weakness Repeat
  • 1170246 2024-004
    Material Weakness Repeat
  • 1170247 2024-004
    Material Weakness Repeat
  • 1170248 2024-004
    Material Weakness Repeat
  • 1170249 2024-004
    Material Weakness Repeat
  • 1170250 2024-004
    Material Weakness Repeat
  • 1170251 2024-004
    Material Weakness Repeat
  • 1170252 2024-004
    Material Weakness Repeat
  • 1170253 2024-005
    Material Weakness Repeat
  • 1170254 2024-005
    Material Weakness Repeat
  • 1170255 2024-005
    Material Weakness Repeat
  • 1170257 2024-006
    Material Weakness Repeat
  • 1170258 2024-006
    Material Weakness Repeat
  • 1170259 2024-006
    Material Weakness Repeat
  • 1170260 2024-006
    Material Weakness Repeat
  • 1170261 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $555,247
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $546,348
10.553 SCHOOL BREAKFAST PROGRAM $243,801
10.555 NATIONAL SCHOOL LUNCH PROGRAM $72,180
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $47,423
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $14,965
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $3,390
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $2,579
84.027 SPECIAL EDUCATION GRANTS TO STATES $628
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $39