Finding 514258 (2024-001)

Significant Deficiency and Material Instance of Non-Compliance: Finding 2024-001 Annual Performance Report This finding impacts the reporting compliance requirement for the major program, Assistance Listing Number 84.425U, COVID-19 - Education Stabilization Fund, funded by the Department of Education and passed through by the Commonwealth of Massachusetts, Department of Elementary and Secondary Education (DESE). Criteria: The School must follow the monitoring and reporting program performance requirements set out in the Uniform Guidance Section 200.239. The School must submit an annual performance report (OMB. No. 1810-0749) for the Elementary and Secondary School Emergency Relief (ESSER) funding with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory/reservations. The expenditures disclosed on the report must match the expenditures stated in the Schedule of Expenditures of Federal Awards (SEFA). Condition: During our compliance testing, we reviewed the ESSER annual performance reports submitted by the School. The total ESSER expenditures reported within the annual performance report did not agree back to the ESSER expenditures recorded on the SEFA for the year ended June 30, 2023, by approximately $77,000. Cause: The School combined non-ESSER expenditures with ESSER expenditures in the annual performance report for the year ended June 30, 2023. Effect: Incorrect expenditure reported on the annual performance report for the year ended June 30, 2023, by approximately $77,000. This non-compliance with the Uniform Guidance requirement could potentially impact future Federal funding. Questioned Costs: There were no questioned costs as a result of this finding. Was the finding a repeat of a finding in the immediately prior year?: No Recommendation: AAFCPAs recommends that management follows its internal controls as intended to ensure the annual performance reports agrees back to the SEFA for applicable reporting periods. Management’s Response: During the audit, it was discovered that the fiscal year 2023 ESSER Data Collection Report was filed with ESSSER 3 information that included amounts reported on the 2023 SEFA from ESSER 2 and ESSER 3. Management acknowledges this and has taken measures to ensure that all Federal reports will be filed in compliance with and in agreement by program as reported on the SEFA in the future.