Finding 1179557 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-03-16

Audit: 391927

Organization: Town of Nantucket, Massachusetts (MA)

Auditor: ROSELLI CLARK AND ASSOCIATES

AI Summary

Core Issue: Costs were charged to federal grants for services and payroll incurred before the grant period started.
Impacted Requirements: Compliance with 2 CFR section 200.309, which mandates that funds can only be used after grant approval and within the grant period.
Recommended Follow-up: The School should establish better monitoring procedures for grant performance dates to avoid future questioned costs.

Finding Text

2025-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster (IDEA) – ALN 84.027 & 84.173 Criteria: Per 2 CFR section 200.309 grant funds may only be obligated upon the date of approval by the awarding agency through the end of the grant period. Condition: Costs were charged to the grants for invoices with service dates prior to the start of the grant period and payroll and related benefits earned prior to the start of the grant period. Cause: Two grants were approved approximately three weeks after the start of the school year. Effect: The School expended funds outside of the period of performance which resulted in questioned costs. Questioned Costs: $26,586 Repeat Finding from Prior Year: Yes; finding 2024-003 Recommendation: The School should implement procedures to properly monitor award performance dates to ensure that goods and services charged to federal grants are within the period of performance for each award. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Costs were charged to the grants for invoices with service dates prior to the start of the grant period and payroll and related benefits earned prior to the start of the grant period. Corrective Action Planned: We had budgeted the full cost of one teacher and four teaching assistances in the IDEA 240 grant for 2025. The approval process for the grant took longer than expected, our intent was always to comply, but we do realize we should have waited for the approval to be in place prior to charging the costs of these employees to the grant. In the future we will wait for the approval process to be complete and will then charge the employees there. Anticipated Completion Date: Completed Contact: Martin Anguelov, Chief Financial Officer for Nantucket Public Schools and Deb Gately, Director of Special Education for Nantucket Public Schools

Other Findings in this Audit

1179553 2025-001

Material Weakness Repeat
1179554 2025-001

Material Weakness Repeat
1179555 2025-001

Material Weakness Repeat
1179556 2025-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$602,687
20.205	HIGHWAY PLANNING AND CONSTRUCTION	$290,362
20.939	SAFE STREETS AND ROADS FOR ALL	$173,757
16.922	EQUITABLE SHARING PROGRAM	$132,853
10.553	SCHOOL BREAKFAST PROGRAM	$72,528
84.425	EDUCATION STABILIZATION FUND	$57,434
84.367	SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS)	$37,124
10.555	NATIONAL SCHOOL LUNCH PROGRAM	$35,340
20.106	AIRPORT IMPROVEMENT PROGRAM, COVID-19 AIRPORTS PROGRAMS, AND INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS	$12,118
84.173	SPECIAL EDUCATION PRESCHOOL GRANTS	$10,197
84.027	SPECIAL EDUCATION GRANTS TO STATES	$8,670
15.616	CLEAN VESSEL ACT	$7,674
97.042	EMERGENCY MANAGEMENT PERFORMANCE GRANTS	$7,090
84.010	TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES	$6,212
84.365	ENGLISH LANGUAGE ACQUISITION STATE GRANTS	$1,726