EIN: 116002021
UEI: C72RJDR956K4
Audited by: Cullen & Danowski, LLP
Oversight agency: 84 [Department of Education]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 11, 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 November 11, 2026 (67 days from today).
What is a management decision? →The District submitted Form FS-10F final expenditure reports that included amounts for open encumbrances that were not fully expended after the final reports’ submission; the cumulative expenditures in the District’s accounting records for two of the Education Stabilization Fund (ESF) grants (CRRSA ESSER II, pass-through entity number 5891-21-1490, and ARP ESSER III, pass-through entity number 5880-21- 1490) were less than the amounts claimed by the District on the FS-10Fs. The FS-10F for a third ESF grant (ARP SLR Learning Loss, pass-through entity number 5884-21-1490) included a duplicated amount for purchased services that was the result of a duplicated journal entry in the District’s accounting records. As a result, the expenditures reported on the FS-10F final expenditure reports exceeded the actual expenditures incurred and recorded by the District, and the District received reimbursements from the pass-through entity, New York State Education Department (NYSED) for expenditures it did not incur. Cause: The District lacked adequate internal controls and review procedures to ensure that FS-10F reports were based solely on actual, incurred expenditures, and reported amounts are subsequently reconciled to final general ledger balances in its accounting records. The District’s procedures for reviewing and approving journal entries failed to identify two erroneous entries. Additionally, there was a failure to implement procedures to monitor outstanding encumbrances included in the FS-10F and to communicate adjustments to the NYSED when those encumbrances were not ultimately realized as expenditures. Effect: As a result of the overstatement of expenditures on the FS-10F, the District received reimbursement in excess of allowable amounts. The District may be required to repay the excess funds received. Questioned costs: $52,798 for CRRSA ESSER II grant, $119,095 for ARP ESSER III grant, and $25,667 for ARP SLR Learning Loss grant. Context: For the CRRSA ESSER II grant, a payment of $72,906 to a vendor was charged to the grant in a prior year and included on the FS-10F filed in October 2023, the District subsequently determined that expenditure was not an allowable cost and corrected its accounting records; however, the District did not notify the NYSED of the change and the FS-10F was not revised to reflect this correction. Furthermore, there were $20,107 of expenditures recorded in the District’s accounting records that were not included in the FS- 10F; collectively, these two items resulted in the District reporting expenditures on the FS-10F for the CRRSA ESSER II grant that exceeded actual, allowable expenditures incurred by a net amount of $52,799. For the ARP ESSER III grant, the District included $6,400 related to an open purchase order for architectural and engineering fees on the FS-10F filed in October 2024. The purchase order was originally encumbered for $10,400; however, only $4,000 in actual expenditures were incurred, the remaining $6,400 balance was never expended as the project was completed with no additional invoices received from the engineering firm. Additionally, unliquidated payroll-related encumbrances at June 30, 2025, totaling $112,695 were included in the FS-10F; however, there were no actual expenditures incurred. For the ARP ALR Learning Loss grant, the District recorded a journal entry to reclassify the expenditure for a payment made to a vendor, but duplicated that amount in another journal entry recording expenditure to the grant. The duplicated amount was included in the FS-10F filed in October 2024. Identification of a Repeat Finding: This is not a repeat finding from the immediately prior audit. Recommendation: The District should strengthen its internal controls over grant reporting and reimbursement processes to ensure that expenditures reported on the FS-10F final expenditure reports are accurate, allowable, and fully supported by the accounting records. Journal entries affecting federal grants expenditures The District should perform a comprehensive reconciliation of the FS-10F to the general ledger prior to submission, and again after the grant period ends to confirm all reported amounts were ultimately expended, and establish a formal process to review and clear outstanding encumbrances included in grant reports, ensuring any amounts not realized as expenditures are removed or adjusted. Additionally, the District should develop procedures to identify and track subsequent adjustments, including reclassifications of unallowable costs, and ensure that such changes are timely communicated and corrected with the New York State Education Department, and to require documented supervisory review and approval of all final expenditure reports and their subsequent reconciliations with supporting documentation and final accounting records. Views of Responsible Officials of Auditee: The District acknowledges the finding related to the reporting of expenditures on the FS-10F and agrees that certain encumbrances and subsequently adjusted items were not properly reflected in the final expenditure submissions to the New York State Education Department (SED). The District notes that several of the identified items, including open purchase orders and payroll encumbrances, were initially included in the FS-10F in accordance with prior internal practice and interpretation of reporting guidance at the time of submission. In addition, the District acknowledges that certain post-submission adjustments, including reclassifications of unallowable costs and the liquidation of encumbrances, were not subsequently reflected through amended FS-10F filings. The District further recognizes that these conditions resulted in reporting discrepancies between the FS-10F submissions and actual expenditures incurred, leading to an overstatement of expenditures and excess reimbursement. The District has calculated the net obligation of $52,798.77 and intend to reimburse the NYSED for this amount.
Show full finding ▾Hide full finding ▴2025-002. Allowable Costs/Cost Principles – (Excess Reimbursement Due to Inaccurate Final Expenditure Reporting) United States of Department of Education, Passed Through New York State, Department of Education: COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D Pass-through Entity Number: 5891-21-1490 COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief ALN: 84.425U Pass-through Entity Number: 5880-21-1490 COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief ALN: 84.425U Pass-through Entity Number: 5884-21-1490 Criteria: Per 2 CFR Part 200, specifically §§200.302 and 200.403, financial management systems must ensure that expenditures reported for federal awards are accurate, allowable, and properly supported. Costs charged to federal awards must be incurred and supported by underlying accounting records. Reports and reimbursement requests must be reconciled to the recipient’s accounting records. Additionally, guidance from the pass-through entity, New York State Education Department, requires that the Final Expenditure Report (FS-10F) reflect actual expenditures incurred, not outstanding obligations or encumbrances that have not been fully liquidated (e.g., purchase orders), and that districts revise or adjust claims as necessary if amounts differ from final expenditures. Condition: The District submitted Form FS-10F final expenditure reports that included amounts for open encumbrances that were not fully expended after the final reports’ submission; the cumulative expenditures in the District’s accounting records for two of the Education Stabilization Fund (ESF) grants (CRRSA ESSER II, pass-through entity number 5891-21-1490, and ARP ESSER III, pass-through entity number 5880-21- 1490) were less than the amounts claimed by the District on the FS-10Fs. The FS-10F for a third ESF grant (ARP SLR Learning Loss, pass-through entity number 5884-21-1490) included a duplicated amount for purchased services that was the result of a duplicated journal entry in the District’s accounting records. As a result, the expenditures reported on the FS-10F final expenditure reports exceeded the actual expenditures incurred and recorded by the District, and the District received reimbursements from the pass-through entity, New York State Education Department (NYSED) for expenditures it did not incur. Cause: The District lacked adequate internal controls and review procedures to ensure that FS-10F reports were based solely on actual, incurred expenditures, and reported amounts are subsequently reconciled to final general ledger balances in its accounting records. The District’s procedures for reviewing and approving journal entries failed to identify two erroneous entries. Additionally, there was a failure to implement procedures to monitor outstanding encumbrances included in the FS-10F and to communicate adjustments to the NYSED when those encumbrances were not ultimately realized as expenditures. Effect: As a result of the overstatement of expenditures on the FS-10F, the District received reimbursement in excess of allowable amounts. The District may be required to repay the excess funds received. Questioned costs: $52,798 for CRRSA ESSER II grant, $119,095 for ARP ESSER III grant, and $25,667 for ARP SLR Learning Loss grant. Context: For the CRRSA ESSER II grant, a payment of $72,906 to a vendor was charged to the grant in a prior year and included on the FS-10F filed in October 2023, the District subsequently determined that expenditure was not an allowable cost and corrected its accounting records; however, the District did not notify the NYSED of the change and the FS-10F was not revised to reflect this correction. Furthermore, there were $20,107 of expenditures recorded in the District’s accounting records that were not included in the FS- 10F; collectively, these two items resulted in the District reporting expenditures on the FS-10F for the CRRSA ESSER II grant that exceeded actual, allowable expenditures incurred by a net amount of $52,799. For the ARP ESSER III grant, the District included $6,400 related to an open purchase order for architectural and engineering fees on the FS-10F filed in October 2024. The purchase order was originally encumbered for $10,400; however, only $4,000 in actual expenditures were incurred, the remaining $6,400 balance was never expended as the project was completed with no additional invoices received from the engineering firm. Additionally, unliquidated payroll-related encumbrances at June 30, 2025, totaling $112,695 were included in the FS-10F; however, there were no actual expenditures incurred. For the ARP ALR Learning Loss grant, the District recorded a journal entry to reclassify the expenditure for a payment made to a vendor, but duplicated that amount in another journal entry recording expenditure to the grant. The duplicated amount was included in the FS-10F filed in October 2024. Identification of a Repeat Finding: This is not a repeat finding from the immediately prior audit. Recommendation: The District should strengthen its internal controls over grant reporting and reimbursement processes to ensure that expenditures reported on the FS-10F final expenditure reports are accurate, allowable, and fully supported by the accounting records. Journal entries affecting federal grants expenditures The District should perform a comprehensive reconciliation of the FS-10F to the general ledger prior to submission, and again after the grant period ends to confirm all reported amounts were ultimately expended, and establish a formal process to review and clear outstanding encumbrances included in grant reports, ensuring any amounts not realized as expenditures are removed or adjusted. Additionally, the District should develop procedures to identify and track subsequent adjustments, including reclassifications of unallowable costs, and ensure that such changes are timely communicated and corrected with the New York State Education Department, and to require documented supervisory review and approval of all final expenditure reports and their subsequent reconciliations with supporting documentation and final accounting records. Views of Responsible Officials of Auditee: The District acknowledges the finding related to the reporting of expenditures on the FS-10F and agrees that certain encumbrances and subsequently adjusted items were not properly reflected in the final expenditure submissions to the New York State Education Department (SED). The District notes that several of the identified items, including open purchase orders and payroll encumbrances, were initially included in the FS-10F in accordance with prior internal practice and interpretation of reporting guidance at the time of submission. In addition, the District acknowledges that certain post-submission adjustments, including reclassifications of unallowable costs and the liquidation of encumbrances, were not subsequently reflected through amended FS-10F filings. The District further recognizes that these conditions resulted in reporting discrepancies between the FS-10F submissions and actual expenditures incurred, leading to an overstatement of expenditures and excess reimbursement. The District has calculated the net obligation of $52,798.77 and intend to reimburse the NYSED for this amount.
2025-002. Allowable Costs/Cost Principles – (Excess Reimbursement Due to Inaccurate Final Expenditure Reporting) United States of Department of Education, Passed Through New York State, Department of Education: COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D Pass-through Entity Number: 5891-21-1490 COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief ALN: 84.425U Pass-through Entity Number: 5880-21-1490 COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief ALN: 84.425U Pass-through Entity Number: 5884-21-1490 Condition: The District submitted Form FS-10F final expenditure reports that included amounts for open encumbrances that were not fully expended after the final reports’ submission; the cumulative expenditures in the District’s accounting records for two of the Education Stabilization Fund (ESF) grants (CRRSA ESSER II, pass-through entity number 5891-21-1490, and ARP ESSER III, pass-through entity number 5880-21-1490) were less than the amounts claimed by the District on the FS-10Fs. The FS-10F for a third ESF grant (ARP SLR Learning Loss, pass-through entity number 5884-21-1490) included a duplicated amount for purchased services that was the result of a duplicated journal entry in the District’s accounting records. As a result, the expenditures reported on the FS-10F final expenditure reports exceeded the actual expenditures incurred and recorded by the District, and the District received reimbursements from the pass-through entity, New York State Education Department (NYSED) for expenditures it did not incur. Recommendation: The District should strengthen its internal controls over grant reporting and reimbursement processes to ensure that expenditures reported on the FS-10F final expenditure reports are accurate, allowable, and fully supported by the accounting records. Journal entries affecting federal grants expenditures The District should perform a comprehensive reconciliation of the FS-10F to the general ledger prior to submission, and again after the grant period ends to confirm all reported amounts were ultimately expended, and establish a formal process to review and clear outstanding encumbrances included in grant reports, ensuring any amounts not realized as expenditures are removed or adjusted. Additionally, the District should develop procedures to identify and track subsequent adjustments, including reclassifications of unallowable costs, and ensure that such changes are timely communicated and corrected with the New York State Education Department, and to require documented supervisory review and approval of all final expenditure reports and their subsequent reconciliations with supporting documentation and final accounting records. Planned Corrective Action: The District will strengthen internal controls over grant reporting to ensure that all expenditures reported on Form FS-10F are accurate, fully expended, and supported by the general ledger. Prior to submission, the District will perform a detailed reconciliation between the FS-10F and accounting records, verifying that only actual expenditures—not open encumbrances—are reported. A post-period reconciliation will also be conducted to confirm that all reported amounts were ultimately realized as expenditures. The District will establish a process to identify and track subsequent adjustments, including reclassifications or corrections, and will promptly communicate any necessary amendments to the New York State Education Department (NYSED). Starting from the next grant final cost submission, effective May 1, 2026, a structured review and approval process will be enforced: the Administrative Assistant responsible for grants will serve as the first-level reviewer during FS-10F preparation, and the Financial Officer will serve as the second-level reviewer prior to final submission. All final reports will require documented supervisory approval and supporting documentation, including actual invoices and purchase order amounts, to ensure accuracy and compliance. Responsible Contact Person: Mr. Idowu K. Ogundipe, CPA Assistant Superintendent for Business Freeport Union Free School District 235 North Ocean Avenue Freeport, New York 11520 Tel: (516) 867-5212 Email: iogundipe@freeportschools.org Anticipated Completion Date: May 1, 2026
Payroll expenditures charged to the ARP Summer Learning grant for employees performing security guard duties were incorrectly reported as salaries for professional staff. These positions were not included in the approved grant budget. Cause: An employee responsible for assigning payroll budget codes for employees whose salaries are charged to federal grant awards miscoded the security guards who performed security duties for the summer learning program, mistakenly thinking that they were reimbursable expenditures under the position expenditure object code 150 (instructional). Effect: As a result, $9,343 in grant expenditures were not in accordance with the approved budget and are considered unallowable costs under the ARP Summer Learning grant. The District may be required to return funds received. Questioned Cost: $9,343. Context: Total population of payroll transactions for Education Stabilization Fund grants was 418, we selected a sample of 15%, or sixty-three (63) payroll transactions. Of these, two (2) transactions were for employees performing security guard duties who were charged to the ARP Summer Learning grant as instructional employees. As a result of the exceptions, we expanded our scope and analyzed the payroll detail report for the ARP Summer Learning grant. This analysis identified a total of six (6) employees performing security guard functions who were incorrectly classified as teachers and charged to the ARP Summer Learning grant. These six (6) employees were associated with a total of fifteen (15) payroll transactions, amounting to $9,343. Identification of a Repeat Finding: This is not a repeat finding from the immediately prior audit. Recommendation: The District should strengthen its internal controls over payroll coding and grant expenditure review procedures to ensure that employee classifications accurately reflect actual job duties and are properly aligned with approved grant budgets. Specifically, the District should implement a secondary review process to verify that positions charged to federal awards are consistent with the approved budget prior to posting payroll. In addition, we recommend that the District review payroll coding across all Education Stabilization Fund programs to identify and correct any similar misclassifications. Finally, we recommend that the District reimburse NYSED for the $9,343 in unallowable costs charged to the ARP Summer Learning grant. Views of Responsible Officials of Auditee: The District concurs with the audit finding. The District acknowledges that certain employees performing security-related duties were incorrectly coded as instructional staff and charged to the ARP Summer Learning grant. The District agrees that these costs were not included in the approved grant budget and therefore are unallowable under the program. The District will implement corrective action to ensure proper classification of employees in the accounting system going forward. Additionally, the District will reimburse NYSED for the questioned costs totaling $9,343.
Show full finding ▾Hide full finding ▴2025-003. Allowable Costs/Cost Principles – (Ineligible Security Payroll Costs) COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief ALN: 84.425U Pass-through Entity Number: 5882-21-1490 Criteria: Federal grant funds must be expended in accordance with the approved grant budget and applicable cost principles. Only costs that are properly budgeted, necessary, reasonable, and allowable to the grant may be charged to the program. Condition: Payroll expenditures charged to the ARP Summer Learning grant for employees performing security guard duties were incorrectly reported as salaries for professional staff. These positions were not included in the approved grant budget. Cause: An employee responsible for assigning payroll budget codes for employees whose salaries are charged to federal grant awards miscoded the security guards who performed security duties for the summer learning program, mistakenly thinking that they were reimbursable expenditures under the position expenditure object code 150 (instructional). Effect: As a result, $9,343 in grant expenditures were not in accordance with the approved budget and are considered unallowable costs under the ARP Summer Learning grant. The District may be required to return funds received. Questioned Cost: $9,343. Context: Total population of payroll transactions for Education Stabilization Fund grants was 418, we selected a sample of 15%, or sixty-three (63) payroll transactions. Of these, two (2) transactions were for employees performing security guard duties who were charged to the ARP Summer Learning grant as instructional employees. As a result of the exceptions, we expanded our scope and analyzed the payroll detail report for the ARP Summer Learning grant. This analysis identified a total of six (6) employees performing security guard functions who were incorrectly classified as teachers and charged to the ARP Summer Learning grant. These six (6) employees were associated with a total of fifteen (15) payroll transactions, amounting to $9,343. Identification of a Repeat Finding: This is not a repeat finding from the immediately prior audit. Recommendation: The District should strengthen its internal controls over payroll coding and grant expenditure review procedures to ensure that employee classifications accurately reflect actual job duties and are properly aligned with approved grant budgets. Specifically, the District should implement a secondary review process to verify that positions charged to federal awards are consistent with the approved budget prior to posting payroll. In addition, we recommend that the District review payroll coding across all Education Stabilization Fund programs to identify and correct any similar misclassifications. Finally, we recommend that the District reimburse NYSED for the $9,343 in unallowable costs charged to the ARP Summer Learning grant. Views of Responsible Officials of Auditee: The District concurs with the audit finding. The District acknowledges that certain employees performing security-related duties were incorrectly coded as instructional staff and charged to the ARP Summer Learning grant. The District agrees that these costs were not included in the approved grant budget and therefore are unallowable under the program. The District will implement corrective action to ensure proper classification of employees in the accounting system going forward. Additionally, the District will reimburse NYSED for the questioned costs totaling $9,343.
2025-003. Allowable Costs/Cost Principles – (Ineligible Security Payroll Costs) United States of Department of Education, Passed Through New York State, Department of Education: COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief ALN: 84.425U Pass-through Entity Number: 5882-21-1490 Condition: Payroll expenditures charged to the grant for employees performing security guard duties were incorrectly reported as salaries for professional staff. These positions were not included in the approved grant budget. Recommendation: The District should strengthen its internal controls over payroll coding and grant expenditure review procedures to ensure that employee classifications accurately reflect actual job duties and are properly aligned with approved grant budgets. Specifically, the District should implement a secondary review process to verify that positions charged to federal awards are consistent with the approved budget prior to posting payroll. In addition, we recommend that the District review payroll coding across all Education Stabilization Fund programs to identify and correct any similar misclassifications. Finally, we recommend that the District reimburse NYSED for the $9,343 in unallowable costs charged to the ARP Summer Learning grant. Planned Corrective Action: The District will strengthen internal controls over payroll coding and grant expenditure reporting to ensure that all personnel costs charged to grants are accurate, properly classified, and aligned with the approved grant budget. Employee roles charged to federal programs will be reviewed to confirm that job duties and position classifications are consistent with budgeted categories prior to payroll posting. A secondary review process will be implemented whereby payroll entries related to grant funding are reviewed and approved by a designated supervisor before submission. This review will specifically verify that positions charged to grants are allowable, correctly coded, and included in the approved budget. The District will conduct a comprehensive review of payroll coding across all Education Stabilization Fund (ESF) programs to identify and correct any similar misclassifications. Any discrepancies identified will be promptly adjusted in the accounting records. To address the identified issue, the Assistant Business Administrator will contact the New York State Education Department (NYSED) to determine the appropriate process for refunding or adjusting the $9,343 in unallowable costs charged to the ARP Summer Learning grant and will complete the required reimbursement in a timely manner. This is expected to be completed by June 30, 2026. Documentation of all corrective actions and communications will be maintained. Responsible Contact Person: Mr. Idowu K. Ogundipe, CPA Assistant Superintendent for Business Freeport Union Free School District 235 North Ocean Avenue Freeport, New York 11520 Tel: (516) 867-5212 Email: iogundipe@freeportschools.org Anticipated Completion Date: June 30, 2026
FAC accepted this audit on April 10, 2025 — management decision was due October 10, 2025.
The District did not include COVID grants-funded capital improvements in its capital assets inventory records. Cause: Insufficient internal controls over the tracking and reporting of federally-funded capital improvements. The District recorded expenditures for CRRSA and ARP grants-funded capital improvements and upgrades to its facilities and ventilation systems as contractual/purchased services in the special aid fund based on instructions from the pass-through entity instead of in the capital projects fund. As a result, District personnel compiling annual capital additions information did not identify the COVID grants-funded capital improvements as capital assets that should be added to the capital assets inventory listing. Effect: Failure to include capital improvements acquired with Federal awards in the District’s capital assets inventory records affects its financial reporting in conformity with Generally Accepted Accounting Principles (GAAP) and could lead to improper or non-compliant procedures for assets inventory management, and the subsequent disposal of those capital assets. Questioned Costs: None reported. Context: The District uses specific expenditure codes in its special aid fund to identify and track various categories of expenditures incurred that are reimbursable under various Federal awards, including the ESSER grant awards under the CRRSA Act and ARP. Based on instructions from the pass-through entity, the New York State Education Department (NYSED), the District included eligible capital improvement costs in its CRRSA ESSER 2 and ARP ESSER 3 budget applications as purchased services, which were approved by the NYSED, and recorded the expenditures in its special aid fund’s contractual expenditures object code (.400 code). When District personnel compiled the listing of capital improvements additions for the fiscal year to perform the annual update of the capital assets inventory record, they reviewed and included capital costs from the District’s capital projects fund, but did not review or identify the costs of the various capital improvements that were recorded in the special aid fund’s .400 contractual expenditures code. Identification of a Repeat Finding: This is not a repeat finding from the immediately prior audit. Recommendation: The District should review and revise its existing procedures for compiling annual capital assets additions information to ensure capital expenditures purchased with Federal awards that meet the District’s capitalization threshold are considered and evaluated for inclusion in the District’s annual capital assets inventory records as appropriate. Views of Responsible Officials of Auditee: The District acknowledges but does not fully agree with this finding. federally-funded expenditures were recorded in the Special Aid Fund as purchased services, both on the FS-10 budgets and the purchase orders for portion of the capital improvement projects the PO’s were issued against. These payments are partially payments to contractors for wages, labor, materials, and other items, not necessarily equipment. The methods of financing for all these costs are reported on the State SA-139 Building Project Data Forms as partially funded by grants from ARPA & ESSER and annual district appropriation budget; hence, in the District’s annual capital asset inventory report, they will eventually be reconciled with the final building project cost report and will be added and tracked as part of the whole capital improvement projects.
Show full finding ▾Hide full finding ▴2024-001. Equipment and Real Property Management United States of Department of Education, Passed Through New York State, Department of Education: Education Stabilization Fund COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief ALN: 84.425U Criteria: Education Stabilization Fund (ESF) grant awards authorized under the federal Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act and American Rescue Plan Act of 2021 (ARP) may be used for equipment purchases and capital expenditures, consistent with federal regulations 2 CFR §200.313 and 2 CFR §200.439. In accordance with 2 CFR §200.313, non-federal entities receiving federal awards are required to have procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a federal award, until disposition takes place. This includes maintaining property records that include a description of the property, a serial number or other identification number, the source of funding for the property, including the Federal Award Identification Number (FAIN), and who holds title. In addition, it requires non-federal entities to track the acquisition date and cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of the property acquired with federal awards must also be taken and the results reconciled with the property inventory records at least once every two years. Condition: The District did not include COVID grants-funded capital improvements in its capital assets inventory records. Cause: Insufficient internal controls over the tracking and reporting of federally-funded capital improvements. The District recorded expenditures for CRRSA and ARP grants-funded capital improvements and upgrades to its facilities and ventilation systems as contractual/purchased services in the special aid fund based on instructions from the pass-through entity instead of in the capital projects fund. As a result, District personnel compiling annual capital additions information did not identify the COVID grants-funded capital improvements as capital assets that should be added to the capital assets inventory listing. Effect: Failure to include capital improvements acquired with Federal awards in the District’s capital assets inventory records affects its financial reporting in conformity with Generally Accepted Accounting Principles (GAAP) and could lead to improper or non-compliant procedures for assets inventory management, and the subsequent disposal of those capital assets. Questioned Costs: None reported. Context: The District uses specific expenditure codes in its special aid fund to identify and track various categories of expenditures incurred that are reimbursable under various Federal awards, including the ESSER grant awards under the CRRSA Act and ARP. Based on instructions from the pass-through entity, the New York State Education Department (NYSED), the District included eligible capital improvement costs in its CRRSA ESSER 2 and ARP ESSER 3 budget applications as purchased services, which were approved by the NYSED, and recorded the expenditures in its special aid fund’s contractual expenditures object code (.400 code). When District personnel compiled the listing of capital improvements additions for the fiscal year to perform the annual update of the capital assets inventory record, they reviewed and included capital costs from the District’s capital projects fund, but did not review or identify the costs of the various capital improvements that were recorded in the special aid fund’s .400 contractual expenditures code. Identification of a Repeat Finding: This is not a repeat finding from the immediately prior audit. Recommendation: The District should review and revise its existing procedures for compiling annual capital assets additions information to ensure capital expenditures purchased with Federal awards that meet the District’s capitalization threshold are considered and evaluated for inclusion in the District’s annual capital assets inventory records as appropriate. Views of Responsible Officials of Auditee: The District acknowledges but does not fully agree with this finding. federally-funded expenditures were recorded in the Special Aid Fund as purchased services, both on the FS-10 budgets and the purchase orders for portion of the capital improvement projects the PO’s were issued against. These payments are partially payments to contractors for wages, labor, materials, and other items, not necessarily equipment. The methods of financing for all these costs are reported on the State SA-139 Building Project Data Forms as partially funded by grants from ARPA & ESSER and annual district appropriation budget; hence, in the District’s annual capital asset inventory report, they will eventually be reconciled with the final building project cost report and will be added and tracked as part of the whole capital improvement projects.
Significant Deficiency 2024-001. Equipment and Real Property Management United States Department of Education, Passed Through New York State, Department of Education: Education Stabilization Fund COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief ALN: 84.425U Condition: The District did not include COVID grants-funded capital improvements in its capital assets inventory records. Planned Corrective Action: The District’s Assistant Superintendent for Business will put procedures in place to ensure that capital spending of federal funds are included in the District’s capital assets inventory reports. The federally-funded capital improvements cited in this report will also be added to the capital assets inventory records for financial reporting purposes. Responsible Contact Person: Mr. Idowu K. Ogundipe, CPA Assistant Superintendent for Business Freeport Union Free School District 235 North Ocean Avenue Freeport, New York 11520 Tel: (516) 867-5212 Email: iogundipe@freeportschools.org Anticipated Completion Date: September 1, 2025.
The District received total reimbursement for its 2022-2023 IDEA, Part B (Section 611) Federal grant award that exceeded the program’s final total expenditures, but did not notify the pass-through entity of the overpayment to refund the overpayment. Cause: Some of the amounts reported in the District’s final expenditure report (Form FS-10F) submitted to the pass-through entity, the New York State Education Department (NYSED), for its 2022-2023 IDEA, Part B (Section 611) grant award were for accrued expenditures based on open encumbrances that did not materialize. The District’s Business Office adjusted the records in their accounting system but neglected to contact the pass-through entity for instructions to submit a corrected final expenditure report and refund the overpaid reimbursement. Effect: The failure to notify the pass-through entity of unentitled Federal grant monies and promptly refund unentitled monies is noncompliant with Federal regulations and could affect amounts of future grant awards or their approval. Questioned Costs: $60,184. Context: On its revised Form FS-10F final expenditure report for the 2022-23 IDEA, Part B Section 611 grant award, which was submitted to the NYSED on March 6, 2024, the District reported amounts for three vendors totaling $62,199 that were recorded as accounts payable based on open encumbrances. Subsequently, in October 2024, the District determined that only $2,015 for one vendor was a valid expenditure and outstanding accounts payable, and adjusted its accounting records for the year ended June 30, 2024, while the external audit of its annual financial statements was under way. The District did not contact the NYSED about the invalid expenditures claimed on its Form FS-10F final expenditure report. Identification of a Repeat Finding: This is not a repeat finding from the immediately prior audit. Recommendation: The District should notify the NYSED of the overpayment and obtain instructions for how to refund the overpayment. The District should also implement procedures to ensure discrepancies between amounts reported in final expenditure reports and accounting records are reconciled and corrected final reports are submitted to the NYSED timely. Views of Responsible Officials of Auditee: The District agrees with the finding. The District’s Assistant Business Administrator will contact the NYSED and submit a corrected final expenditure report, and begin the overpayment refund process.
Show full finding ▾Hide full finding ▴Other Matter – Non-Major Federal Award Program 2024-002. Questioned Costs United States of Department of Education, Passed Through New York State, Department of Education: Special Education Cluster Special Education Grants to States: IDEA Part B ALN: 84.027 Pass-through Entity Number: 0032-23-0415 Criteria: Pursuant to Federal regulations 2 CFR §200.344(e), a subrecipient of a Federal award must promptly refund any unobligated funds that the Federal agency or pass-through entity paid that are not authorized to be retained. Condition: The District received total reimbursement for its 2022-2023 IDEA, Part B (Section 611) Federal grant award that exceeded the program’s final total expenditures, but did not notify the pass-through entity of the overpayment to refund the overpayment. Cause: Some of the amounts reported in the District’s final expenditure report (Form FS-10F) submitted to the pass-through entity, the New York State Education Department (NYSED), for its 2022-2023 IDEA, Part B (Section 611) grant award were for accrued expenditures based on open encumbrances that did not materialize. The District’s Business Office adjusted the records in their accounting system but neglected to contact the pass-through entity for instructions to submit a corrected final expenditure report and refund the overpaid reimbursement. Effect: The failure to notify the pass-through entity of unentitled Federal grant monies and promptly refund unentitled monies is noncompliant with Federal regulations and could affect amounts of future grant awards or their approval. Questioned Costs: $60,184. Context: On its revised Form FS-10F final expenditure report for the 2022-23 IDEA, Part B Section 611 grant award, which was submitted to the NYSED on March 6, 2024, the District reported amounts for three vendors totaling $62,199 that were recorded as accounts payable based on open encumbrances. Subsequently, in October 2024, the District determined that only $2,015 for one vendor was a valid expenditure and outstanding accounts payable, and adjusted its accounting records for the year ended June 30, 2024, while the external audit of its annual financial statements was under way. The District did not contact the NYSED about the invalid expenditures claimed on its Form FS-10F final expenditure report. Identification of a Repeat Finding: This is not a repeat finding from the immediately prior audit. Recommendation: The District should notify the NYSED of the overpayment and obtain instructions for how to refund the overpayment. The District should also implement procedures to ensure discrepancies between amounts reported in final expenditure reports and accounting records are reconciled and corrected final reports are submitted to the NYSED timely. Views of Responsible Officials of Auditee: The District agrees with the finding. The District’s Assistant Business Administrator will contact the NYSED and submit a corrected final expenditure report, and begin the overpayment refund process.
Significant Deficiency Other Matter – Non-Major Federal Award Program 2024-002. Questioned Costs United States Department of Education, Passed Through New York State, Department of Education: Special Education Cluster Special Education Grants to States: IDEA Part B ALN: 84.027 Pass-through Entity Number: 0032-23-0415 Condition: The District received total reimbursement for its 2022-2023 IDEA, Part B (Section 611) Federal grant award that exceeded the program’s final total expenditures, but did not notify the pass-through entity of the overpayment to refund the overpayment. Planned Corrective Action: The District’s Assistant Business Administrator will contact the NYSED for instructions to submit a corrected final expenditure report, and begin the overpayment refund process. Responsible Contact Person: Mr. Ivono Stintug Assistant Business Administrator Freeport Union Free School District 235 North Ocean Avenue Freeport, New York 11520 Tel: (516) 867-5235 Email: istintug@freeportschools.org Anticipated Completion Date: April 30, 2025.
FAC accepted this audit on April 11, 2024 — management decision was due October 11, 2024.
FAC accepted this audit on March 29, 2023 — management decision was due September 29, 2023.
FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.
Upon testing of the expenditures charged to the Elementary and Secondary School Emergency Relief (ESSER) funds, it was determined that certain costs charged to the grant would not be allowable based on the nature of the items purchased. Criteria: The District is required to make purchases using federal funds that comply with program guidelines established by federal and state agencies. Cause: While paying for expenditures, the District incorrectly charged costs that were not allowable to the grant. Effect: This could result in the District potentially submitting unallowable expenditures for reimbursement when preparing their final cost report. Questioned Costs: $5,434. Context: Total population size of purchase expenditures was 192. Audit sample size was 15% of population, which totaled 30, haphazardly selected for audit testing. Finding was identified in one audit sample. Identification of a Repeat Finding: This is not a repeat finding from a previous audit. Recommendation: The District should perform a detailed review of expenditures charged to this grant prior to submitting its final cost report to the New York State Education Department for reimbursement. Management?s Response: Management agrees with the finding. The District?s Assistant Superintendent for Business and Assistant Business Administrator will review all costs charged to the program to ensure that they are allowable costs under the guidance provided by state and federal agencies to be charged to the grant.
Show full finding ▾Hide full finding ▴2021-001. Allowable Costs/Cost Principles Department of Education, Passed-through New York State, Department of Education: Education Stabilization Fund (ESF) COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund Assistance Listing (CFDA) No. 84.425D Condition: Upon testing of the expenditures charged to the Elementary and Secondary School Emergency Relief (ESSER) funds, it was determined that certain costs charged to the grant would not be allowable based on the nature of the items purchased. Criteria: The District is required to make purchases using federal funds that comply with program guidelines established by federal and state agencies. Cause: While paying for expenditures, the District incorrectly charged costs that were not allowable to the grant. Effect: This could result in the District potentially submitting unallowable expenditures for reimbursement when preparing their final cost report. Questioned Costs: $5,434. Context: Total population size of purchase expenditures was 192. Audit sample size was 15% of population, which totaled 30, haphazardly selected for audit testing. Finding was identified in one audit sample. Identification of a Repeat Finding: This is not a repeat finding from a previous audit. Recommendation: The District should perform a detailed review of expenditures charged to this grant prior to submitting its final cost report to the New York State Education Department for reimbursement. Management?s Response: Management agrees with the finding. The District?s Assistant Superintendent for Business and Assistant Business Administrator will review all costs charged to the program to ensure that they are allowable costs under the guidance provided by state and federal agencies to be charged to the grant.
2021-001. Allowable Costs/Cost Principles Education Stabilization Fund (ESF) COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund Assistance Listing (CFDA) No. 84.425D Condition: Upon testing of expenditures charged to the Elementary and Secondary School Emergency Relief (ESSER) funds, it was determined that certain costs charged to the grant were not allowable based on the nature of the items purchased. Planned Corrective Action: The District?s Assistant Superintendent for Business and Assistant Business Administrator will review all costs charged to the program to ensure that they are allowable grant costs under the guidance provided by state and federal agencies. Responsible Contact Person: Mr. Idowu K. Ogundipe, CPA, Assistant Superintendent for Business. Anticipated Completion Date: November 30, 2022. Contact Information: Mr. Idowu K. Ogundipe, CPA Assistant Superintendent for Business Freeport Union Free School District 235 N. Ocean Avenue Freeport, New York 11520
FAC accepted this audit on September 28, 2021 — management decision was due March 28, 2022.
The District has not updated their existing purchasing policy to incorporate the Uniform Guidance procurement standards. The District has not adopted written procedures that conform to Uniform Guidance requirements. Cause: Due to turnover at two key Business Office positions, the District did not complete a review of existing policies and written procedures related to the administration of Federal awards. Context: The former Assistant Superintendent for Business responsible for implementing the corrective action and the Assistant Business Administrator both left the employ of the District before the review and updating of existing policies and written procedures were completed. Effect: Having insufficient or non-compliant written policies and procedures weaken the internal controls over the spending of Federal awards, increasing the risk of noncompliance with Federal statutes and regulations. Questioned Costs: None reported. Identification of a Repeat Finding: This is a repeat finding from the previous audit, item # 2019-001. Recommendation: The District must review its existing written policies and procedures and update them as applicable in order to strengthen internal controls and comply with requirements of Uniform Guidance. Views of Responsible Officials of Auditee: The District agrees with the finding and recommendation. The District?s newly-appointed Assistant Superintendent for Business will coordinate the review of District?s policies and written procedures relating to the administration of Federal awards to ensure that written policies and procedures are updated and in compliance with the Uniform Guidance requirements.
Show full finding ▾Hide full finding ▴Significant Deficiency 2020-001. Internal Control Over Compliance Department of Education Passed Through New York State Department of Education Special Education Cluster Special Education Grants to States CFDA No. 84.027 Special Education Preschool Grants CFDA No. 84.173 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 has not updated their existing purchasing policy to incorporate the Uniform Guidance procurement standards. The District has not adopted written procedures that conform to Uniform Guidance requirements. Cause: Due to turnover at two key Business Office positions, the District did not complete a review of existing policies and written procedures related to the administration of Federal awards. Context: The former Assistant Superintendent for Business responsible for implementing the corrective action and the Assistant Business Administrator both left the employ of the District before the review and updating of existing policies and written procedures were completed. Effect: Having insufficient or non-compliant written policies and procedures weaken the internal controls over the spending of Federal awards, increasing the risk of noncompliance with Federal statutes and regulations. Questioned Costs: None reported. Identification of a Repeat Finding: This is a repeat finding from the previous audit, item # 2019-001. Recommendation: The District must review its existing written policies and procedures and update them as applicable in order to strengthen internal controls and comply with requirements of Uniform Guidance. Views of Responsible Officials of Auditee: The District agrees with the finding and recommendation. The District?s newly-appointed Assistant Superintendent for Business will coordinate the review of District?s policies and written procedures relating to the administration of Federal awards to ensure that written policies and procedures are updated and in compliance with the Uniform Guidance requirements.
CORRECTIVE ACTION PLAN For the Year Ended June 30, 2020 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2020-001. Internal Control Over Compliance Department of Education Passed Through New York State Department of Education Special Education Cluster Special Education Grants to States CFDA No. 84.027 Special Education Preschool Grants CFDA No. 84.173 Condition: The District has not updated their existing policies and written procedures to conform to Uniform Guidance requirements. Planned Corrective Action: The District?s newly-appointed Assistant Superintendent for Business will coordinate the review of District?s policies and written procedures relating to the administration of Federal awards to ensure that written policies and procedures are updated and in compliance with the Uniform Guidance requirements. Responsible Contact Person: James R. Pappas, CPA, Assistant Superintendent for Business Anticipated Completion Date: March 31, 2022. Contact Information: James R. Pappas, CPA Assistant Superintendent for Business Freeport Union Free School District 235 N. Ocean Avenue Freeport, New York 11520
2019-001
FAC accepted this audit on September 24, 2020 — management decision was due March 24, 2021.
The District has not updated their existing policies and written procedures to conform to Uniform Guidance requirements. Cause: Staffing constraints and turnover limited the District?s ability to perform a timely review of its existing policies and written procedures. Effect: Having insufficient or non-compliant written policies and procedures weaken the internal controls over the spending of Federal awards, increasing the risk of noncompliance with Federal statutes and regulations. Questioned Costs: None reported. Identification of a Repeat Finding: This is not a repeat finding from the previous audit. Recommendation: The District should review its existing written policies and procedures and update them as needed in order to strengthen its existing controls and comply with requirements of Uniform Guidance. Views of Responsible Officials: The District agrees with the recommendation. The District?s new Assistant Superintendent for Business will review all policies and procedures related to the administering of Federal awards to ensure policies and written procedures are in place and comply with requirements of the Uniform Guidance.
Show full finding ▾Hide full finding ▴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 Department of Education Passed Through New York State, Department of Education English Language Acquisition State Grants CFDA No. 84.365 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 has not updated their existing policies and written procedures to conform to Uniform Guidance requirements. Cause: Staffing constraints and turnover limited the District?s ability to perform a timely review of its existing policies and written procedures. Effect: Having insufficient or non-compliant written policies and procedures weaken the internal controls over the spending of Federal awards, increasing the risk of noncompliance with Federal statutes and regulations. Questioned Costs: None reported. Identification of a Repeat Finding: This is not a repeat finding from the previous audit. Recommendation: The District should review its existing written policies and procedures and update them as needed in order to strengthen its existing controls and comply with requirements of Uniform Guidance. Views of Responsible Officials: The District agrees with the recommendation. The District?s new Assistant Superintendent for Business will review all policies and procedures related to the administering of Federal awards to ensure policies and written procedures are in place and comply with requirements of the Uniform Guidance.
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 Department of Education Passed Through New York State, Department of Education English Language Acquisition State Grants CFDA No. 84.365 Condition: The District has not updated their existing policies and written procedures to conform to Uniform Guidance requirements. Planned Corrective Action: The District?s new Assistant Superintendent for Business will review District?s policies and procedures related to the administering of federal awards and revise them where applicable to ensure policies and written procedures are in place to comply with the Uniform Guidance. Responsible Contact Person: Salvatore Carambia, Assistant Superintendent for Business Anticipated Completion Date: December 31, 2020 Contact Information: Mr. Salvatore Carambia Assistant Superintendent for Business Freeport Union Free School District 235 N. Ocean Avenue Freeport, New York 11520
FAC accepted this audit on March 27, 2019 — management decision was due September 27, 2019.
FAC accepted this audit on March 27, 2018 — management decision was due September 27, 2018.
FAC accepted this audit on March 23, 2017 — management decision was due September 23, 2017.
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