EIN: 026000420
UEI: PDKMM5D84XX1
Audited by: Plodzik & Sanderson, P.A.
Oversight agency: 84 [Department of Education]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 31, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 1, 2026 (31 days from today).
What is a management decision? →During our testing of payroll expenditures charged to the Child Nutrition Cluster, we selected a sample of nine employees. For two of the employees selected, we noted that timesheets were not formally reviewed and approved by appropriate supervisory personnel. Cause: The issue appears to be the result of administrative oversight and inconsistent execution of established review procedures. While the District has a timesheet review process in place, it was not consistently performed during the period under audit. Subsequent to our audit procedures, management implemented an enhanced multi-level review process whereby timesheets are first reviewed by site managers, then by the Food Service Director, and finally by the finance office prior to processing. Effect: The lack of documented supervisory approval over timesheets reduces the effectiveness of internal controls over payroll and increases the risk that hours charged to the Federal program may not be accurate, properly supported, or allowable. Without evidence of review, there is no assurance that the time reported was actually worked or appropriately allocated to the Child Nutrition Cluster. Questioned Costs: None. While a control deficiency was identified, our testing did not identify any instances of noncompliance or unallowable costs charged to the program. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management continue to strengthen and consistently apply its timesheet review and approval controls to ensure full compliance with Federal requirements. Specifically, all employee timesheets should be reviewed and formally approved by appropriate supervisory personnel prior to payroll processing. The School District should also monitor adherence to the enhanced multi-level review process to ensure it is operating effectively throughout the fiscal year. Views of Responsible Officials: Management’s views and corrective action plan are included at the end of this report.
Show full finding ▾Hide full finding ▴2025-001 Approval of Timesheets (Significant Deficiency) Federal Agency: U.S. Department of Agriculture Pass-through Agency: New Hampshire Department of Education Cluster/Program: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555 Passed-through Identification: N/A Compliance Requirement: Allowable Activities or Unallowed Activities Type of Finding: Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement: In accordance with 2 CFR 200.303, the School District, as a recipient of Federal funds, is required to establish and maintain effective internal controls over Federal awards that provide reasonable assurance the entity is managing those awards in compliance with Federal statutes, regulations, and the terms and conditions of the award. Such internal controls should be designed to ensure accuracy, allowability, and proper documentation of all expenditures charged to Federal programs. Further, pursuant to 2 CFR 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated; Be incorporated into the official records of the non-Federal entity; Reasonably reflect the total activity for which the employee is compensated, not exceeding 100% of compensated activities; and Support the distribution of the employee’s salary or wages among specific activities or cost objectives when the employee works on multiple activities, including both Federal and non-Federal programs. Effective supervisory review and approval of timesheets is a key control to ensure compliance with these requirements, as it provides verification that reported hours were actually worked and appropriately charged. Condition: During our testing of payroll expenditures charged to the Child Nutrition Cluster, we selected a sample of nine employees. For two of the employees selected, we noted that timesheets were not formally reviewed and approved by appropriate supervisory personnel. Cause: The issue appears to be the result of administrative oversight and inconsistent execution of established review procedures. While the District has a timesheet review process in place, it was not consistently performed during the period under audit. Subsequent to our audit procedures, management implemented an enhanced multi-level review process whereby timesheets are first reviewed by site managers, then by the Food Service Director, and finally by the finance office prior to processing. Effect: The lack of documented supervisory approval over timesheets reduces the effectiveness of internal controls over payroll and increases the risk that hours charged to the Federal program may not be accurate, properly supported, or allowable. Without evidence of review, there is no assurance that the time reported was actually worked or appropriately allocated to the Child Nutrition Cluster. Questioned Costs: None. While a control deficiency was identified, our testing did not identify any instances of noncompliance or unallowable costs charged to the program. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management continue to strengthen and consistently apply its timesheet review and approval controls to ensure full compliance with Federal requirements. Specifically, all employee timesheets should be reviewed and formally approved by appropriate supervisory personnel prior to payroll processing. The School District should also monitor adherence to the enhanced multi-level review process to ensure it is operating effectively throughout the fiscal year. Views of Responsible Officials: Management’s views and corrective action plan are included at the end of this report.
We are appreciative of the Plodzik team bringing the child nutrition timesheet approvals to our attention. Management has discussed with the food services director, and she with her team, the need for a more thorough review process. Timesheets are now reviewed by the food services director for accuracy and both signatures prior to entry into payroll by her administrative assistant. Another review is done by the payroll coordinator when original timesheets are turned. In previous years, food service held all timesheets until the end of the school year, then provide them to payroll for retention purposes. As a final review, before payroll is processed and funds dispersed, the finance director reviews all entries and timesheets for accuracy and completeness.
FAC accepted this audit on February 11, 2025 — management decision was due August 11, 2025.
FAC accepted this audit on February 19, 2024 — management decision was due August 19, 2024.
During review of the food service unassigned fund balance, it was noted that the balance exceeded three months’ average expenditures. The fund balance in the food service fund amounted to $655,749 whereas three months’ average expenditures is $419,360. This generates excess fund balance of $236,389. Effect: The District is not in compliance with CFR Title 7, 210.14(b) by maintaining fund balance more than three months average expenditures. Cause: Lack of administrative oversight. Questioned Costs: $236,389. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the School District take immediate steps to reduce its net cash resources by having an acceptable, approved plan for using surplus fund balance. Since program funds must be used only for program purposes, excess fund balance must be reduced by improving the quality of food served or purchasing needed supplies, services, or equipment unless otherwise directed by the State of New Hampshire Department of Education. Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.
Show full finding ▾Hide full finding ▴Excess Food Service Fund Balance (Material Weakness) Federal Agency: U.S. Department of Agriculture Pass-through Agency: New Hampshire Department of Education Cluster/Program: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Passed-through Identification: N/A Compliance Requirement: Special Tests and Provisions Type of Finding: Internal Control over Compliance – Material Weakness Material Noncompliance Criteria or Specific Requirement: Federal regulations 2 CFR 200.303 states, the School District, as a recipient of Federal funds, must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, under 7 CFR, 210.14(b), Net Cash Resources, “the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service.” Condition: During review of the food service unassigned fund balance, it was noted that the balance exceeded three months’ average expenditures. The fund balance in the food service fund amounted to $655,749 whereas three months’ average expenditures is $419,360. This generates excess fund balance of $236,389. Effect: The District is not in compliance with CFR Title 7, 210.14(b) by maintaining fund balance more than three months average expenditures. Cause: Lack of administrative oversight. Questioned Costs: $236,389. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the School District take immediate steps to reduce its net cash resources by having an acceptable, approved plan for using surplus fund balance. Since program funds must be used only for program purposes, excess fund balance must be reduced by improving the quality of food served or purchasing needed supplies, services, or equipment unless otherwise directed by the State of New Hampshire Department of Education. Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.
Audit Finding Reference: 2023-001 Management's View and Planned Corrective Action: Due to the extension of the federal funding for free school meals in the prior year, the District is aware of the fund balance greater than three (3) months of its average expenditures. We are looking to reserve the program fund balance to support the potential renovation that will take place over the summer of 2024 should Warrant Article 6 Renovate the Checkers Kitchen at Alvirne pass. This special warrant article is recommended by both the Hudson School Board and Budget Committee. This is allowable from the NH Department of Education's Office of Nutrition Programs and Services (ONPS). Name of Contact Person and Completion Date: Karen Atherton, Food Service Director Melissa Van Sickle, Finance Director Anticipated completion date: If supply issues are not a factor, December 31, 2024; otherwise, June 30, 2025.
FAC accepted this audit on February 6, 2023 — management decision was due August 6, 2023.
FAC accepted this audit on January 31, 2022 — management decision was due July 31, 2022.
FAC accepted this audit on February 2, 2021 — management decision was due August 2, 2021.
FAC accepted this audit on January 1, 2020 — management decision was due July 1, 2020.
FAC accepted this audit on January 10, 2019 — management decision was due July 10, 2019.
FAC accepted this audit on February 4, 2018 — management decision was due August 4, 2018.
FAC accepted this audit on February 9, 2017 — management decision was due August 9, 2017.
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