Center Moriches Union Free School DistrictLocal Government

2020-001. Internal Control Over Compliance 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 updated written documentation of internal control policies and procedures, which include 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 yet completed updating their existing policies and written procedures to conform to Uniform Guidance requirements. Cause: Staffing constraints as well as the District switching to a remote work format due to the State mandated closure of the District as a result of the COVID-19 pandemic limited the District?s ability to develop new policies and procedures. Potential Effect: Not having implemented the updated written policies and procedures weaken the internal controls over the Federal award and could increase the risk of noncompliance with Federal statutes and regulations. Questioned Costs: None reported. Repeat Finding: This was part of a finding from the previous audit referenced as 2019-001. Recommendation: The District must review its existing written policies and procedures and update them as needed in order to comply with requirements of Uniform Guidance. Views of Responsible Officials of Auditee: The District is aware of this finding and is in the process of creating this document and updating procedures as they relate to the document.

Significant Deficiencies 2019-001. Internal Control Over Compliance ? Procurement 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 updated written documentation of internal control policies and procedures, which include 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 limited the District?s ability to perform a timely review and update of its existing policies and written procedures. Potential Effect: Not having updated written policies and procedures weaken the internal controls over the Federal award, and could increase the risk of noncompliance with Federal statutes and regulations. Questioned Costs: None reported. Repeat Finding: This is not a repeat finding from the previous audit. Recommendation: The District must review its existing written policies and procedures and update them as needed in order to comply with requirements of Uniform Guidance. Views of Responsible Officials of Auditee: The District is aware of this finding and is in the process of creating this document and updating procedures as they relate to the document.

2019-002. Internal Control Over Compliance ? Special Tests/Income Verification Child Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Criteria: Federal regulations require that all Local Education Agencies (LEAs) participating in the School Breakfast Program (SBP) or National School Lunch Program (NSLP) verify a sample of their approved free and reduced meal applications each year by November 15th. Child Nutrition program guidelines stipulate how to select the percentage of approved applications that are subject to income verification and how to conduct the verification process including required procedures when responses are not received. Condition: The District determined that the sample size for verification of approved applications for the school year 2018-2019 was three (3). Based on the original applications all three students qualified for free meals. The results of the verification were that one (1) household was considered categorically eligible and the student continued to be eligible for free meals. The remaining two (2) households did not submit support for income verification; and therefore the students in these households should have been classified as full price meals. Upon review of the status of these two students we found that they were classified as free. One family had provided documentation subsequent to the deadline and was therefore eligible for free lunches again, however there was no evidence that the other student was eligible for free lunches and should have paid for meals for the balance of the year. Cause: Based on our inquiries and review of 100% of the applications in the income verification population used by the District, we noted that the District had an error relating to entering the information for this student, and this student was improperly classified for a free price meal, instead of full price meal. Effect: The District claims for reimbursement included one student as free instead of paid from November 15, 2018 to the end of the school year resulting in the overpayment of federal reimbursements for free and reduced price meals. The amount of the overage is limited. Questioned Costs: None reported Repeat Finding: This is not a repeat finding from the previous audit. Recommendation: We recommend that the District review the status of changes required by the verification process and maintain documentation that any changes needed were implemented. Views of Responsible Officials: The District is aware of this finding and in the future upon completion of the verification process by the Senior Office Assistant the business office will review the verification responses and compare the students chosen in the Nutrikids system to verify status has been updated accordingly.