Finding 1205317 (2025-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-03-31

Audit: 397023

Organization: Town of Stoneham, Massachusetts (MA)

Auditor: CLIFTONLARSONALLEN LLP

AI Summary

Core Issue: Expenditures of $64,511 were incorrectly charged to federal grants for costs incurred before the approved start date of October 1, 2024.
Impacted Requirements: Compliance with federal regulations (2 CFR Part 200) regarding allowable costs within the grant's period of performance was violated.
Recommended Follow-Up: Management should establish procedures to ensure all costs charged to federal grants are incurred within the approved timeframes.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Federal Award Identification Number and Year: H027A230076 (10/1/2024 – 9/30/2026), H173A230039 (10/1/2024 – 9/30/2026) Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 240-000558-2025-0284, 262-000559-2025-0284 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Qualified Opinion) Criteria or specific requirement: In accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and the applicable grant agreements, costs charged to federal awards must be incurred within the approved period of performance. Expenditures incurred outside of the grant’s authorized start and end dates are not allowable and should not be charged to the award. Condition: For the year ended June 30, 2025, expenditures were charged to both the Special Education Grants to States (IDEA, Part B) program (ALN 84.027) and the Special Education Preschool Grants program (ALN 84.173) for costs incurred during the period from July 2024 through September 2024. However, the approved period of performance for both grants began on October 1, 2024. These expenditures were charged to the grants through a journal entry, resulting in costs incurred prior to the start of the period of performance being included as federal expenditures. Questioned costs: $64,511 Context: During testing of expenditures charged at the beginning of the period of performance for both the Special Education Grants to States (IDEA, Part B) program and the Special Education Preschool Grants program, it was identified that $64,511 of costs charged to the grants were incurred prior to the start of the award periods on October 1, 2024. Cause: Inadequate review of the grant period of performance prior to transferring costs to the federal programs through journal entries. Effect: Expenditures incurred outside the approved period of performance were charged to federal awards, resulting in noncompliance with federal award requirements related to period of performance. Repeat Finding: No. Recommendation: We recommend management implement procedures to ensure that expenditures charged to federal grants are incurred within the approved period of performance. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

The Stoneham Public Schools are under new fiscal management as of October 29, 2025. As part of this change, grants are being initiated with an information sheet to all grant managers which provides start and end dates for eligible expenditures, as well as MUNIS budget codes for directly expensing reasonable and allocable expenses to the grant via a requisition/purchase order/ AP process used throughout the district. The grant budget codes are established in direct coordination with the approved grant budget at the time of award, and will be updated if amendments are required. The finance office will also receive these grant information sheets, and provide a cross check of the eligibility and coding requirements as requisitions are processed. No expenses shall be allowed in advance of an approved purchase order.

Other Findings in this Audit

1205315 2025-001

Material Weakness Repeat
1205316 2025-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$3.35M
93.276	DRUG-FREE COMMUNITIES SUPPORT PROGRAM GRANTS	$190,020
84.425	EDUCATION STABILIZATION FUND	$136,417
84.010	TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES	$114,629
10.555	NATIONAL SCHOOL LUNCH PROGRAM	$105,761
10.553	SCHOOL BREAKFAST PROGRAM	$53,642
84.367	SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS)	$47,700
84.173	SPECIAL EDUCATION PRESCHOOL GRANTS	$20,704
84.027	SPECIAL EDUCATION GRANTS TO STATES	$8,392
84.424	STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM	$7,750
97.042	EMERGENCY MANAGEMENT PERFORMANCE GRANTS	$5,100