We are in receipt of the Federal Single Audit Report from our external auditors, R.S. Abrams & Company, LLP. I am pleased to report that they found no material weaknesses in our internal controls but have included the following recommendation under Federal Awards (Finding #2022-001). The response and implementation date to the finding is discussed below. In addition, the status of the prior year's findings are provided as well. Finding #2022-001 - According to 34 CFR Section 300.203, and the OMB Compliance Supplement, IDEA Part B funds received by a school district cannot be used, except under certain limited circumstances, to reduce the level of expenditures for the education of children with disabilities made by the school district from local funds, or a combination of state and local funds, below the level of those expenditures for the preceding fiscal year. To meet this requirement, school districts must meet (I) the eligibility standard using budgeted amounts and (2) the compliance standard using prior year's expenditures. Recommendation: We recommend the District develop a system of internal control to have the maintenance of effort calculator reviewed and approved with all supporting documentation by a responsible administrator prior to submitting it to the State. We also recommend the District officials contact the State to verify procedures to file a revised MOE calculation, if considered necessary. District Response: The Business office has made the revisions to the Maintenance of Effort calculator which was resubmitted and approved. Moving forward, the Maintenance of Effort calculator will be reviewed and approved by Beth Rella, the Assistant Superintendent for Business. In addition, the District has established templates to be used for the back-up needed for the Maintenance of Effort calculator. This recommendation is considered implemented as of March 3rd, 2023.