EIN: 026000497
UEI: ZKX1CPHJ9PM5
Audited by: Plodzik & Sanderson, P.A.
Oversight agency: 84 [Department of Education]
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Data as of August 31, 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 (29 days from today).
What is a management decision? →During our testing of expenditures, we identified four invoices totaling $47,884.94 that did not contain evidence of formal supervisory review and approval. Specifically, the invoices were not initialed, signed, or otherwise documented to demonstrate that a compliance review had been performed prior to payment. Although the School District has established procedures requiring review and approval of invoices, these procedures were not consistently followed. As a result, there was no documented evidence to support that the expenditures were reviewed for allowability, allocability, and compliance with applicable Federal requirements prior to disbursement. Cause: This deficiency appear to be the result of inconsistent adherence to established internal control procedures and a lack of effective monitoring to ensure that required review and approval controls are performed and documented. While a review process exists, it is not operating effectively in practice, and responsibilities for documenting approval may not be clearly enforced or consistently applied. Effect: As a result of the lack of documented supervisory review, the School District is unable to demonstrate that expenditures charged to the Child Nutrition Cluster were evaluated for compliance with Federal requirements prior to payment. This control deficiency increases the risk that unallowable, unsupported, or noncompliant costs could be charged to the Federal program and not be detected in a timely manner. In addition, the absence of documented approval weakens the audit trail and reduces transparency and accountability over Federal expenditures, which may result in increased scrutiny from oversight agencies and the potential for questioned or disallowed costs. Questioned Costs: None. No unallowable costs were identified. Identification as Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the School District strengthen its internal controls over Federal expenditures by ensuring that all invoices charged to Federal programs are subject to a documented supervisory review and approval prior to payment. This review should include consideration of allowability, allocability, and compliance with program requirements. Evidence of such review should be consistently documented (e.g., signature, initials, or electronic approval) and retained in accordance with Federal record retention requirements. In addition, management should implement monitoring procedures to verify that established controls are operating effectively and consistently across all applicable transactions. 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 Invoices (Material Weakness) Federal Agency: U.S. Department of Agriculture Pass-through Agency: New Hampshire Department of Education Cluster/Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, & 10.582 Passed-through Identification: N/A Compliance Requirement: Activities Allowed or Unallowable and Allowable Costs / Cost Principles Type of Finding: Internal Control over Compliance – Material Weakness Criteria or Specific Requirement: Per 2 CFR 200.303, non-Federal entities are required to establish and maintain effective internal control over Federal awards that provides reasonable assurance that the entity is managing such awards in compliance with Federal statutes, regulations, and the terms and conditions of the award. These controls should be designed in accordance with established internal control frameworks and include appropriate supervisory review and approval processes. In addition, 2 CFR 200.403 requires that all costs charged to Federal awards be necessary, reasonable, and adequately documented. Adequate documentation includes evidence that expenditures were reviewed and approved by appropriate personnel to ensure allowability, allocability, and compliance with program requirements prior to payment. Condition: During our testing of expenditures, we identified four invoices totaling $47,884.94 that did not contain evidence of formal supervisory review and approval. Specifically, the invoices were not initialed, signed, or otherwise documented to demonstrate that a compliance review had been performed prior to payment. Although the School District has established procedures requiring review and approval of invoices, these procedures were not consistently followed. As a result, there was no documented evidence to support that the expenditures were reviewed for allowability, allocability, and compliance with applicable Federal requirements prior to disbursement. Cause: This deficiency appear to be the result of inconsistent adherence to established internal control procedures and a lack of effective monitoring to ensure that required review and approval controls are performed and documented. While a review process exists, it is not operating effectively in practice, and responsibilities for documenting approval may not be clearly enforced or consistently applied. Effect: As a result of the lack of documented supervisory review, the School District is unable to demonstrate that expenditures charged to the Child Nutrition Cluster were evaluated for compliance with Federal requirements prior to payment. This control deficiency increases the risk that unallowable, unsupported, or noncompliant costs could be charged to the Federal program and not be detected in a timely manner. In addition, the absence of documented approval weakens the audit trail and reduces transparency and accountability over Federal expenditures, which may result in increased scrutiny from oversight agencies and the potential for questioned or disallowed costs. Questioned Costs: None. No unallowable costs were identified. Identification as Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the School District strengthen its internal controls over Federal expenditures by ensuring that all invoices charged to Federal programs are subject to a documented supervisory review and approval prior to payment. This review should include consideration of allowability, allocability, and compliance with program requirements. Evidence of such review should be consistently documented (e.g., signature, initials, or electronic approval) and retained in accordance with Federal record retention requirements. In addition, management should implement monitoring procedures to verify that established controls are operating effectively and consistently across all applicable transactions. Views of Responsible Officials: Management’s views and corrective action plan are included at the end of this report.
The School District strengthened its internal controls over Federal expenditures by ensuring that all invoices are forwarded to the BA upon receipt. The BA will then review and approve before payment is made. The review includes allowability, allocability, and compliance with program requirements. Evidence of such review consists of either signatures, initials, or electronic approval, depending on the form in which the invoice is received. The approved documents will be retained in accordance with Federal record retention requirements. Management will continue to monitor the procedures to verify that the established controls are working effectively and consistently. This corrective action plan was implemented immediately, once it was recognized as a weakness this past fall.
During our testing of payroll expenditures, we identified multiple instances in which the School District lacked sufficient documentation to support both (1) authorized rates of pay, and (2) time and effort worked for employees whose salaries and wages were charged, in whole or in part, to the grant. Specifically: Formal documentation supporting approved compensation rates (e.g., contracts, board approvals, or personnel action forms) was not consistently maintained; Time and effort documentation was either not available or not sufficient to demonstrate that charges accurately reflected the work performed; and In a certain instance, compensation rate charged did not clearly align with the applicable grant agreement, and available support was limited to informal or undocumented approvals. While there is no evidence identified indicating that services were not performed, the absence of adequate documentation prevented us from independently verifying the allowability, allocability, and accuracy of payroll costs charged to the Federal award. Cause: The School District did not consistently design or implement internal controls requiring formalized and documented approval of employee compensation rates or standardized, time and effort reporting for personnel whose salaries and wages are charged to Federal programs. Instead, the School District relied on informal processes and administrative practices, which did not ensure that payroll documentation was complete, consistently maintained, or compliant with Federal requirements. Effect: As a result, the School District is unable to fully demonstrate that payroll expenditures charged to the grant were properly authorized, accurately reflected the work performed, and complied with applicable Federal requirements and grant provisions. This represents noncompliance with Federal cost principles and increases the risk that unallowable or improperly allocated costs may be charged to Federal programs. Additionally, the lack of sufficient documentation resulted in unsupported (questioned) costs and impaired the School District’s ability to substantiate expenditures in the event of monitoring or audit. Questioned Costs: $11,400.50 Identification as Repeat Finding: This is not a repeat finding. Recommendation: We recommend the School District strengthen internal controls over payroll charged to Federal awards by implementing procedures to ensure that all employee compensation rates are formally documented and approved (e.g., through contracts, board-approved pay schedules, or personnel action forms) and that standardized time and effort documentation is consistently maintained to support all payroll charges to Federal programs. In addition, management should establish periodic review procedures to verify that payroll expenditures are supported, properly authorized, and aligned with applicable grant agreements and Federal requirements under Uniform Guidance (2 CFR 200). 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 ▴2025-002 Inadequate Payroll Documentation (Significant Deficiency) Federal Agency: U.S. Department of Education Pass-through Agency: New Hampshire Department of Education Cluster/Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425U Passed-through Identification: 20220149 Compliance Requirement: Activities Allowed or Unallowable and Allowable Costs / Cost Principles Type of Finding: Internal Control over Compliance – Significant Deficiency Noncompliance Criteria or Specific Requirement: In accordance with 2 CFR 200.430, costs charged to Federal awards must be allowable, allocable, reasonable, and adequately documented. Compensation for personal services must be: Based on records that accurately reflect the work performed; Supported by a system of internal control providing reasonable assurance that such charges are accurate, allowable, and properly allocated; and Incorporated into the official records of the non-Federal entity and supported by documentation sufficient to permit independent verification of both the services performed and the applicable of rates of pay. Condition: During our testing of payroll expenditures, we identified multiple instances in which the School District lacked sufficient documentation to support both (1) authorized rates of pay, and (2) time and effort worked for employees whose salaries and wages were charged, in whole or in part, to the grant. Specifically: Formal documentation supporting approved compensation rates (e.g., contracts, board approvals, or personnel action forms) was not consistently maintained; Time and effort documentation was either not available or not sufficient to demonstrate that charges accurately reflected the work performed; and In a certain instance, compensation rate charged did not clearly align with the applicable grant agreement, and available support was limited to informal or undocumented approvals. While there is no evidence identified indicating that services were not performed, the absence of adequate documentation prevented us from independently verifying the allowability, allocability, and accuracy of payroll costs charged to the Federal award. Cause: The School District did not consistently design or implement internal controls requiring formalized and documented approval of employee compensation rates or standardized, time and effort reporting for personnel whose salaries and wages are charged to Federal programs. Instead, the School District relied on informal processes and administrative practices, which did not ensure that payroll documentation was complete, consistently maintained, or compliant with Federal requirements. Effect: As a result, the School District is unable to fully demonstrate that payroll expenditures charged to the grant were properly authorized, accurately reflected the work performed, and complied with applicable Federal requirements and grant provisions. This represents noncompliance with Federal cost principles and increases the risk that unallowable or improperly allocated costs may be charged to Federal programs. Additionally, the lack of sufficient documentation resulted in unsupported (questioned) costs and impaired the School District’s ability to substantiate expenditures in the event of monitoring or audit. Questioned Costs: $11,400.50 Identification as Repeat Finding: This is not a repeat finding. Recommendation: We recommend the School District strengthen internal controls over payroll charged to Federal awards by implementing procedures to ensure that all employee compensation rates are formally documented and approved (e.g., through contracts, board-approved pay schedules, or personnel action forms) and that standardized time and effort documentation is consistently maintained to support all payroll charges to Federal programs. In addition, management should establish periodic review procedures to verify that payroll expenditures are supported, properly authorized, and aligned with applicable grant agreements and Federal requirements under Uniform Guidance (2 CFR 200). Views of Responsible Officials: Management’s views and corrective action plan are included at the end of this report.
The School District has strengthened its internal control over payroll charged to Federal awards by implementing procedures to ensure that all employees' compensation rates are formally documented and approved by using contracts, board-approved pay schedules, or personnel action forms. Standardized time and effort documentation will be consistently maintained to support all payroll charges to Federal programs. Management will periodically review procedures to verify payroll expenditures are supported, properly authorized, and aligned with applicable grant agreements and Federal Requirements. 2 | P a g e This specific situation was approved by the Superintendent despite the Payroll Manager's warning against it. The HR/Payroll Manager and BA have met with all administration to explain what is required and the process that must be met. All positions will have a contract specifying the rate, and that rate must match the approved Federal activity. The BA advised the HR/Payroll manager to seek guidance from the BA if a similar situation arises again, and that the BA will deal directly with the Superintendent. If an administrator were to question payroll against Federal requirements, the administrator would be directed to the BA. This process has been clarified with all involved staff within the district, and contracts will be required for all Federal program positions moving forward. This was implemented immediately after the significant deficiency was recognized this fall.
FAC accepted this audit on March 24, 2025 — management decision was due September 24, 2025.
FAC accepted this audit on April 1, 2024 — management decision was due October 1, 2024.
FAC accepted this audit on March 27, 2023 — management decision was due September 27, 2023.
FAC accepted this audit on May 31, 2022 — management decision was due December 1, 2022.
FAC accepted this audit on August 22, 2021 — management decision was due February 22, 2022.
FAC accepted this audit on April 21, 2021 — management decision was due October 21, 2021.
FAC accepted this audit on October 9, 2019 — management decision was due April 9, 2020.
FAC accepted this audit on January 15, 2019 — management decision was due July 15, 2019.
FAC accepted this audit on July 12, 2017 — management decision was due January 12, 2018.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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