EIN: 026000451
UEI: YH1XUKJDNKA6
Data as of August 20, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 20, 2024. 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 March 20, 2025, which was (518 days ago).
What is a management decision? →MW-2023-03 LACK OF PROPER CONTROLS OVER COMPLIANCE FOR PURCHASES FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION CLUSTER/PROGRAM: COVID-19 - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF (ESSER) FUND AWARD NAME: COVID-19 - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF (ESSER) FUND AL NUMBER(S): 84.425D, 84.425U AWARD YEAR: 2023 COMPLIANCE REQUIREMENT: ACTIVITIES ALLOWED/ALLOWABLE COSTS TYPE OF FINDING Internal Control over Compliance – Material Weakness CRITERIA All purchase orders must be reviewed and approved by a department head prior to submission as per the City’s internal control policies. CONDITION During our audit, we found that the client was unable to provide purchase orders for 7 of the transactions tested under the ESSER program. This indicates a lapse in the adherence to the established review and approval process for expenditures. CAUSE The lack of proper documentation for the specified transactions was due to a breakdown in the internal control process, where purchase orders were either not generated or not retained as required. EFFECT OR POTENTIAL EFFECT Without proper documentation and adherence to the review and approval process, there is an increased risk of unauthorized or inappropriate expenditures. This could lead to financial mismanagement and non-compliance with funding agency requirements, potentially resulting in funding disallowances. SECTION III – FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS (CONTINUED) RECOMMENDATION We recommend that the City reinforces the importance of following established internal control procedures for reviewing and approving all expenditures. This can be achieved through regular training for staff involved in the procurement process and periodic audits to ensure compliance. Additionally, implementing a centralized document retention system for purchase orders and related documents will help in maintaining proper records and facilitating easier retrieval during audits. VIEWS OF RESPONSIBLE OFFICIAL AND PLANNED CORRECTIVE ACTION See accompanying Corrective Action Plan.
LACONIA SCHOOL DISTRICT CORRECTIVE ACTION PLAN Audit Finding Reference MW-2023-03 Planned corrective action: All purchase orders will be approved by an Administrator and the Business Administrator. The current software allows for and audit path of approval, changes will be made to include the above practice in accordance with City and School District policy. Name of Contact person: Diane Clary, Business Administrator dclary@laconiaschools.org Anticipated completion date: September 30, 2024 Example of Planned Corrective Action: School ERP Pro software will be adjusted for an approval path including an Administrator and The Business Administrator.
MW-2023-04 LACK OF SEGREGATION OF DUTIES IN JOURNAL ENTRY PROCESSING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION CLUSTER/PROGRAM: COVID-19 - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF (ESSER) FUND AWARD NAME: COVID-19 - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF (ESSER) FUND AL NUMBER(S): 84.425D AWARD YEAR: 2023 COMPLIANCE REQUIREMENT: ACTIVITIES ALLOWED/ALLOWABLE COSTS TYPE OF FINDING Internal Control over Compliance – Material Weakness CRITERIA Journal entries should be prepared and approved by different individuals to ensure adequate segregation of duties as a part of the City’s internal control process. This is a best practice and helps to prevent the potential for errors and fraud to be undetected. CONDITION During our audit, we observed that the preparer and reviewer for two of the journal entries tested were the same. There was no evidence of approval by an individual other than the preparer before these entries were posted. CAUSE The absence of a secondary approval for journal entries prepared suggests a weakness in the internal control process, where the requirement for independent review and approval is not being enforced. EFFECT OR POTENTIAL EFFECT The lack of segregation of duties increases the risk of undetected errors and unauthorized entries, which could lead to financial misstatements, fraud, and reduced reliability of financial records. This could compromise the integrity of the financial reporting process. RECOMMENDATION We recommend that the client establish a policy requiring that all journal entries be approved by an individual other than the preparer before posting. The School Business Administrator or any other preparer should ensure that a secondary reviewer, such as a senior accountant or another administrator, reviews and approves all journal entries. Implementing this control will strengthen the segregation of duties and enhance the accuracy and integrity of financial reporting. VIEWS OF RESPONSIBLE OFFICIAL AND PLANNED CORRECTIVE ACTION See accompanying Corrective Action Plan.
LACONIA SCHOOL DISTRICT CORRECTIVE ACTION PLAN Audit Finding Reference MW-2023-04 Planned corrective action: All prepared Journal Entries will be reviewed and approved by the preparer and one other business office individual (Payroll Accounting specialist or Accounts Payable coordinator) Name of Contact person: Diane Clary, Business Administrator dclary@laconiaschools.org Anticipated completion date: September 30, 2024 Example of Planned Corrective Action: Journal entries will be printed by the preparer and reviewed and initialed by another business office employee.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 28, 2022. 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 March 28, 2023, which was (1241 days ago).
What is a management decision? →2021-001 Improve Compliance With Controls Over Cash Management Federal Agency: U.S. Department of Education Cluster/Program: N/A Award Name: COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Fund AL Number(s): 84.425D Award Year: 2021 Compliance Requirement: Cash Management Type of Finding Compliance AND Internal Control over Compliance - Material Weakness Criteria or Specific Requirement Grantees must establish written procedures to implement the cash management require?ments of the Uniform Guidance (2 CFR section 200.305). Further, the grantee must minimize the time elapsing between the transfer of funds from the pass-through entity and dis?bursement by the grantee for direct program or project costs. Management of the Organization is also respon?sible for establishing and maintaining effective internal control over compliance with Federal requirements that have a direct and material effect on a Federal program. A deficiency in internal control over compliance exists when the design or operation of a control over com?pliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. Condition and Context We noted a lack of segregation of duties where the individual preparing the requests for reimbursement was the same individual approving those same requests and recording them in the general ledger. In addition, we were unable to trace requests for reimbursements to the corresponding expenditures reported in the general ledger to determine that costs were incurred prior to the request for payment. Cause Weaknesses in the design and operation of controls. Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts requested to be reimbursed under Federal awards could not be allowable or in accordance with appli?cable cost principles. No questioned costs are reported, as they are not quantifiable. Recommendation The District should develop and implement written cash management policies and procedures in accordance with Uniform Guidance requirements. Effectively designed internal control pro-cedures should require that two individuals be involved in requesting reimbursements, and that the review and oversight of reimbursement requests be documented. In addition, the District should establish procedures to better track expenditures in order to provide accurate information when making requests for reimbursement. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
In response to audit finding 2021-001 and 2021-002 Planned Corrective Action ? Laconia School District will/have develop/ed a procedure to ensure that proper action is taken in accordance with CFR Section 200.305, when processing requests, invoices and approvals, at least two individuals will be involved. Both individuals should be at the administrative level, i.e. Building Principal, Assistant Superintendent, Superintendent or Business Administrator. The guidance for this procedure will be in accordance with the District policies DJB and DJ (attached). Additional action taken immediately, dismissal of employee disregarding School District Policy. All Federal expenditures be within the parameters of each Grant and reviewed by 2 Administrators. Contact: Diane Clary, Business Administrator, Guidelines implemented immediately. Procedure manual will be updated and available by 12/31/22
2021-002 Improve Compliance With Controls Over Cash Management Federal Agency: U.S. Department of Agriculture Cluster/Program: N/A Award Name: Child Nutrition Cluster AL Number(s): 10.553/10.555 Award Year: 2021 Federal Agency: U.S. Department of Treasury Cluster/Program: N/A Award Name: COVID-19 ? Coronavirus Relief Fund AL Number(s): 21.019 Award Year: 2021 Federal Agency: U.S. Department of Education Cluster/Program: N/A Award Name: COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Fund AL Number(s): 84.425D Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles, Period of Performance Type of Finding Compliance AND Internal Control over Compliance - Material Weakness Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allow-able activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also re-sponsible for establishing and maintaining effective internal control over compliance with Federal requirements that have a direct and material effect on a Federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of perform?ing their assigned func-tions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. Condition and Context There was a lack of segregation of duties between the employee initiating transactions and the employee approving transactions for each of the Federal programs listed above. Cause Weaknesses in the design and operation of controls. Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to Federal awards could not be allowable or in accordance with applicable cost principles. Known questioned costs are as follows: Questioned CFDA Number(s) Name of Federal Program or Cluster Costs 10.553/10.555 Child Nutrition Cluster $749,407 21.019 COVID-19 ? Coronavirus Relief Fund $1,146,614 84.425D COVID-19 ? Elementary and Secondary School Emergency Relief (ESSER) Fund $687,212 Recommendation The District should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
In response to audit finding 2021-001 and 2021-002 Planned Corrective Action ? Laconia School District will/have develop/ed a procedure to ensure that proper action is taken in accordance with CFR Section 200.305, when processing requests, invoices and approvals, at least two individuals will be involved. Both individuals should be at the administrative level, i.e. Building Principal, Assistant Superintendent, Superintendent or Business Administrator. The guidance for this procedure will be in accordance with the District policies DJB and DJ (attached). Additional action taken immediately, dismissal of employee disregarding School District Policy. All Federal expenditures be within the parameters of each Grant and reviewed by 2 Administrators. Contact: Diane Clary, Business Administrator, Guidelines implemented immediately. Procedure manual will be updated and available by 12/31/22
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on April 29, 2020. 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 29, 2020, which was (2121 days ago).
What is a management decision? →2019-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Federal Agency: All Cluster/Program: All Award Name: All CFDA Number(s): All Award Year: All Compliance Requirement: Document policies and procedure over certain aspects of financial and program management for federal awards. Type of Finding Compliance ? Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance/UG) established significant new requirements related to federal awards. New requirements stipulate federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: ? Cash management ? Determination of allowable costs ? Employee travel ? Procurement ? Subrecipient monitoring and management Condition and Context The City had not formalized written policies and procedures related to federal awards as required under Uniform Guidance during the period under audit. Cause Weakness in the formal documentation of internal controls. Effect There are no questioned costs as a result of this finding, as there are no costs directly associated with this compliance requirement.Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2018- 001. As indicated in the Corrective Action Plan for year ended June 30, 2018, the City did not expect to have formalized policies and procedures until June 30, 2020. Recommendation We found that subsequent to year end, the City adopted formal policies and procedures over federal awards. No further action is necessary. Views of Responsible Official and Planned Corrective Action Management?s views are included at the end of this report after the summary schedule of prior year audit findings and status.
2019 Single Audit Report: Corrective Action Plan; June 30, 2019 Audit Finding Reference: 2019-001 Document Policies and Procedures Federal Program(s) Information: All Federal Programs Criteria or Specific Requirement: OMB's Uniform Administrative Principles, and Audit Requirements for Federal Awards (UG) established requirements related to Federal awards. The new requirements stipulate recipients must document their policies and procedures over certain program management. Specifically, written policies are required for: ? Cash Management ? Determination of allowable Costs ? Employee travel ? Procurement ? Subrecipient monitoring and management Condition and Context: The City had not formalized written policies and procedures related to Federal awards as required under Uniform Guidance for the period under audit. Current Year Status We found that subsequent to year end, the City adopted formal policies and procedures over federal awards. No further action is necessary. Views of Responsible Official We concur that the policies were not in place for the period under audit. The City took the necessary steps during the year to achieve compliance. However, final adoption of Federal Grant Management Policies and Procedures Manual did not occur until after year end, on August 26, 2019.
2018-001
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 28, 2019. 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 September 28, 2019, which was (2518 days ago).
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