Islip Union Free School DistrictLocal Government

Significant Deficiency 2019-001. Internal Control Over Compliance Department of Agriculture Passed through New York State, Department of Education Child Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Criteria: 2 CFR Section 200.303 of the Uniform Guidance requires non-Federal entities receiving Federal awards to establish and maintain internal control over the Federal awards 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. Under the Uniform Guidance, Federal awards recipients must maintain written documentation of internal control policies and procedures, such as procurement policies that adhere to state and local law as well as federal regulations and statutes; procedures for documenting how costs are to be allocated to federal awards, documenting actual time and effort for payroll costs charged to federal awards; cash management procedures to minimize the time elapsed between the receipts and disbursements of federal funds; and how to safeguard personally identifiable information. Condition: The District did not update its existing policies or document in writing its procedures for managing and administering Federal awards to conform to Uniform Guidance requirements. Cause: The District was awaiting guidance and assistance from the New York State Education Department and the New York State Association of School Business Officials on how to implement. Effect: Having insufficient or non-compliant written policies and procedures weaken the internal controls over the Federal award, increasing the risk of noncompliance with Federal statutes and regulations. Questioned Costs: None noted. Context: During our audit, we reviewed the District?s policies and noted that its current procurement policy did not incorporate the Uniform Guidance procurement standards. Although the District does have procedures and controls in place for the management of Federal awards and related expenditures, they were not documented in writing as required by the Uniform Guidance. Identification of a Repeat Finding: This is not a repeat finding from the previous audit. Recommendation: The District must review its existing written policies and procedures and prepare or update them as needed in order to comply with requirements of the Uniform Guidance. View of Responsible Officials of Auditee: The District is in agreement with the auditor?s finding and recommendation.