CITY OF CAMDEN BOARD OF EDUCATIONLocal Government

Information on the Federal Program U.S. Department of Agriculture Child Nutrition Cluster (Federal Award Year 10/1/23 to 9/30/24): Passed-through N.J. State Department of Agriculture: School Breakfast Program (Assistance Listing 10.553) (FAIN 241NJ304N1099) National School Lunch Program (Assistance Listing 10.555) (FAIN 241NJ3041099) Supply Chain Assistance Award (Assistance Listing 10.555) (FAIN 231NJ3041099) National School Snack Program (Assistance Listing 10.555) (FAIN 241NJ3041099) Child Nutrition Cluster (Federal Award Year 7/1/23 to 6/30/24): Passed-through N.J. State Department of Agriculture: Summer Food Service Program for Children (Assistance Listing 10.559) (FAIN 241NJ304N1099) Passed-through the City of Camden: Summer Food Service Program for Children (Assistance Listing 10.559) (FAIN 241NJ304N1099) Criteria or Specific Requirement The Office of Management and Budget’s Matrix of Compliance Requirements identifies requirements addressed in the Compliance Supplement. One area addressed is reporting. Reporting must be properly completed with supporting documentation. Condition In several instances, the School District’s edit check worksheets did not agree with the number of meals requested for Federal reimbursement. Additionally, there were three instances where the food service daily meal count report did not agree with the School District’s edit check worksheets. Questioned Costs Known and likely questioned costs did not exceed $25,000.00. Context We noted several instances where the monthly edit check sheets did not agree to the number of meals requested for reimbursement. Also, during our testing of meals reported, we noted three instances where the number of meals served did not agree to the monthly edit check worksheets. Effect or Potential Effect The School District did not request reimbursement for the correct number of meals served and, as a result, did not receive the proper amount of Federal reimbursement. Cause Unknown Recommendation That the School District’s food service daily meal count reports agree with the edit check worksheets in order to request the appropriate amount of Federal reimbursement. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Information on the Federal Program U.S. Department of Agriculture Child Nutrition Cluster (Federal Award Year 10/1/23 to 9/30/24): Passed-through N.J. State Department of Agriculture: School Breakfast Program (Assistance Listing 10.553) (FAIN 241NJ304N1099) National School Lunch Program (Assistance Listing 10.555) (FAIN 241NJ3041099) Supply Chain Assistance Award (Assistance Listing 10.555) (FAIN 231NJ3041099) National School Snack Program (Assistance Listing 10.555) (FAIN 241NJ3041099) Child Nutrition Cluster (Federal Award Year 7/1/23 to 6/30/24): Passed-through N.J. State Department of Agriculture: Summer Food Service Program for Children (Assistance Listing 10.559) (FAIN 241NJ304N1099) Passed-through the City of Camden: Summer Food Service Program for Children (Assistance Listing 10.559) (FAIN 241NJ304N1099) Criteria or Specific Requirement The Office of Management and Budget’s Matrix of Compliance Requirements identifies requirements addressed in the Compliance Supplement. One area addressed is reporting. Reporting must be properly completed with supporting documentation. Condition In several instances, the School District’s edit check worksheets did not agree with the number of meals requested for Federal reimbursement. Additionally, there were three instances where the food service daily meal count report did not agree with the School District’s edit check worksheets. Questioned Costs Known and likely questioned costs did not exceed $25,000.00. Context We noted several instances where the monthly edit check sheets did not agree to the number of meals requested for reimbursement. Also, during our testing of meals reported, we noted three instances where the number of meals served did not agree to the monthly edit check worksheets. Effect or Potential Effect The School District did not request reimbursement for the correct number of meals served and, as a result, did not receive the proper amount of Federal reimbursement. Cause Unknown Recommendation That the School District’s food service daily meal count reports agree with the edit check worksheets in order to request the appropriate amount of Federal reimbursement. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Information on the Federal Program U.S. Department of Agriculture Child Nutrition Cluster (Federal Award Year 10/1/23 to 9/30/24): Passed-through N.J. State Department of Agriculture: School Breakfast Program (Assistance Listing 10.553) (FAIN 241NJ304N1099) National School Lunch Program (Assistance Listing 10.555) (FAIN 241NJ3041099) Supply Chain Assistance Award (Assistance Listing 10.555) (FAIN 231NJ3041099) National School Snack Program (Assistance Listing 10.555) (FAIN 241NJ3041099) Child Nutrition Cluster (Federal Award Year 7/1/23 to 6/30/24): Passed-through N.J. State Department of Agriculture: Summer Food Service Program for Children (Assistance Listing 10.559) (FAIN 241NJ304N1099) Passed-through the City of Camden: Summer Food Service Program for Children (Assistance Listing 10.559) (FAIN 241NJ304N1099) Criteria or Specific Requirement The Office of Management and Budget’s Matrix of Compliance Requirements identifies requirements addressed in the Compliance Supplement. One area addressed is reporting. Reporting must be properly completed with supporting documentation. Condition In several instances, the School District’s edit check worksheets did not agree with the number of meals requested for Federal reimbursement. Additionally, there were three instances where the food service daily meal count report did not agree with the School District’s edit check worksheets. Questioned Costs Known and likely questioned costs did not exceed $25,000.00. Context We noted several instances where the monthly edit check sheets did not agree to the number of meals requested for reimbursement. Also, during our testing of meals reported, we noted three instances where the number of meals served did not agree to the monthly edit check worksheets. Effect or Potential Effect The School District did not request reimbursement for the correct number of meals served and, as a result, did not receive the proper amount of Federal reimbursement. Cause Unknown Recommendation That the School District’s food service daily meal count reports agree with the edit check worksheets in order to request the appropriate amount of Federal reimbursement. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Information on the Federal Program U.S. Department of Agriculture Child Nutrition Cluster (Federal Award Year 10/1/23 to 9/30/24): Passed-through N.J. State Department of Agriculture: School Breakfast Program (Assistance Listing 10.553) (FAIN 241NJ304N1099) National School Lunch Program (Assistance Listing 10.555) (FAIN 241NJ3041099) Supply Chain Assistance Award (Assistance Listing 10.555) (FAIN 231NJ3041099) National School Snack Program (Assistance Listing 10.555) (FAIN 241NJ3041099) Child Nutrition Cluster (Federal Award Year 7/1/23 to 6/30/24): Passed-through N.J. State Department of Agriculture: Summer Food Service Program for Children (Assistance Listing 10.559) (FAIN 241NJ304N1099) Passed-through the City of Camden: Summer Food Service Program for Children (Assistance Listing 10.559) (FAIN 241NJ304N1099) Criteria or Specific Requirement The Office of Management and Budget’s Matrix of Compliance Requirements identifies requirements addressed in the Compliance Supplement. One area addressed is reporting. Reporting must be properly completed with supporting documentation. Condition In several instances, the School District’s edit check worksheets did not agree with the number of meals requested for Federal reimbursement. Additionally, there were three instances where the food service daily meal count report did not agree with the School District’s edit check worksheets. Questioned Costs Known and likely questioned costs did not exceed $25,000.00. Context We noted several instances where the monthly edit check sheets did not agree to the number of meals requested for reimbursement. Also, during our testing of meals reported, we noted three instances where the number of meals served did not agree to the monthly edit check worksheets. Effect or Potential Effect The School District did not request reimbursement for the correct number of meals served and, as a result, did not receive the proper amount of Federal reimbursement. Cause Unknown Recommendation That the School District’s food service daily meal count reports agree with the edit check worksheets in order to request the appropriate amount of Federal reimbursement. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2022-002 Information on the Federal Program Child Nutrition Cluster: School Breakfast Program Federal Assistance Listing No. 10.553 National School Lunch Program Federal Assistance Listing No. 10.555 Emergency Operation Cost Reimbursement Program Federal Assistance Listing No. 10.555 Summer Food Service Program for Children Federal Assistance Listing No. 10.559 Criteria or Specific Requirement The Office of Management and Budget?s Matrix of Compliance Requirements identifies requirements addressed in the Compliance Supplement. One area addressed is reporting. Reporting must be properly completed with supporting documentation. Condition In several instances the food service daily meal count report did not agree with the School District?s edit check worksheets that detail the number of meals served and provides the number of meals used to determine the amount of Federal reimbursement. Questioned Costs Known and likely questioned costs did not exceed $25,000 Context During our testing of meals reported, we noted six instances where the number of meals served did not agree to the monthly edit check worksheets. Additionally, in one instance, documentation for the number of meals served at a school for a certain day could not be located. We also noted several instances where the monthly edit check sheets did not agree to the request for reimbursement. Effect or Potential Effect The School District did not request reimbursement for the correct number of meals served and, as a result, did not receive the proper amount of Federal reimbursement. Cause Unknown Identification as a Repeat Finding The condition existed in the immediately preceding fiscal year ? See Finding No. 2021-003. Recommendation That the School District?s food service daily meal count reports agree with the edit check worksheets in an effort to request the appropriate amount of Federal reimbursement. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2022-003 Information on the Federal Program Special Education Cluster: I.D.E.A. Part B ? Basic Federal Assistance Listing No. 84.027 I.D.E.A. Part B ? Preschool Federal Assistance Listing No. 84.173 Criteria or Specific Requirement Individuals with Disabilities Education Act (I.D.E.A.), section CFR 300.203(b)(2) requires that a Local Education Agency must ensure that the amount of funds (local or state/local) budgeted for the education of children with disabilities in the year of the application is at least the same, either in total or per capita, as the amount that is spent for that purpose in the most recent year for which fiscal information is available. Condition The School District incorrectly reported expenditures and budget amounts on its maintenance of effort (M.O.E.) calculation reported to the State. This resulted in the School District not providing accurate information to the State that is used to determine if the maintenance of effort requirements were met as required by the Individuals with Disabilities Education Act (I.D.E.A.), section CFR 300.203(b)(2) Questioned Costs None Context On the I.D.E.A. grant application, maintenance of effort calculation, the School District included numbers as 2019-20 expenditures that did not agree with its audited records for ?Total Special Education Instruction.? Additionally, several budget categories recorded in the 2020-21 and 2021-22 budget columns, did not agree with the School District?s approved budgets for the respective fiscal years. Effect or Potential Effect The School District did not comply with Section CFR 300.203(b)(2) requirements and, by failing to meet the M.O.E. standards, the State may be required to repay the U.S. Department of Education and the State may require reimbursement from the School District. Cause Unknown Identification as a Repeat Finding The condition existed in the immediately preceding fiscal year ? See Finding No. 2021-006. Recommendation That the School District comply with Individuals with Disabilities Education Act (I.D.E.A.), section CFR 300.203(b)(2) requirements by filing an I.D.E.A. grant application, maintenance of effort calculation, that includes expenditures and budget amounts that agree with School District records. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2021-003 Information on the Federal Program Child Nutrition Cluster: School Breakfast Program Federal Assistance Listing No. 10.553 National School Lunch Program Federal Assistance Listing No. 10.555 Emergency Operation Cost Reimbursement Program Federal Assistance Listing No. 10.555 Summer Food Service Program for Children Federal Assistance Listing No. 10.559 Criteria or Specific Requirement The Office of Management and Budget?s Matrix of Compliance Requirements identifies requirements addressed in the Compliance Supplement. One area addressed is program income. Program income must be properly determined and calculated in accordance supporting documentation. Condition One food service daily meal count report did not agree with the School District?s edit check worksheets that detail the number of meals served and provides the number of meals used to determine the amount of Federal reimbursement. Questioned Costs N/A - None Context The School District inadvertently reported 2,871 lunch meals served at the H. B. Wilson School for March 2021. The number of meals served per the School District?s Edit Check Worksheet for the corresponding month was 22,871. Effect or Potential Effect The School District did not request reimbursement for the correct number of meals served and, as a result, did not receive the proper amount of reimbursement. Cause Unknown Identification as a Repeat Finding The condition existed in the immediately preceding fiscal year ? See Finding No. 2020-010. Recommendation That the School District?s food service daily meal count reports agree with the edit check worksheets in an effort to request the appropriate amount of Federal reimbursement. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2021-004 Information on the Federal Program Child Nutrition Cluster: School Breakfast Program Federal Assistance Listing No. 10.553 National School Lunch Program Federal Assistance Listing No. 10.555 Emergency Operation Cost Reimbursement Program Federal Assistance Listing No. 10.555 Summer Food Service Program for Children Federal Assistance Listing No. 10.559 Criteria or Specific Requirement CFR Section 210.14 Resource Management (b) Net cash resources requires a school food authority limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service or an amount approved by the State agency in accordance with CFR Section 210.019(a). Condition The School District did not limit it?s net cash resources to three months average expenditures for it?s school food service fund as required by CFR Section 210.14 Resource Management (b) Net Cash Resources. Questioned Costs N/A - None Context The School District?s food service fund net cash resources at June 30, 2021 was $2,724,121.72 and it?s three month average expenditures was $2,300,972.33, resulting in an excess amount totaling $423,149.39. Effect or Potential Effect The School District is not in compliance with CFR section 210.14 and requirements as prescribed by the Office of School Finance, Department of Education, State of New Jersey Audit Program. Cause The School District?s food service fund revenues increased more than anticipated due to the COVID-19 pandemic. Identification as a Repeat Finding The condition did not exist in the immediately preceding fiscal year. Recommendation That the School District develop a plan to reduce the food service fund?s net cash resources below its three month average expenditures as required by CFR Section 210.14 Resource Management (b) Net Cash Resources. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2021-005 Information on the Federal Program Coronavirus Relief Funds Federal Assistance Listing No. 21.019 Criteria or Specific Requirement Uniform Guidance, Section CFR 200.331(d) requires pass through entities to monitor the activities of a subrecipient to ensure that pass through funds are used for authorized purposes, are in compliance with Federal statutes, regulations, terms and conditions, and that performance goals are met. Condition The School District did not obtain subrecipient monitoring reports for the Coronavirus Relief Funds that were passed through to renaissance schools as required by Uniform Guidance, Section CFR 200.331(d). Questioned Costs None Context The School District was instructed by the State to pass Coronavirus Relief Funds to Renaissance Schools. The School District informed the State, at that time, that it would be difficult to acquire the required reports from the renaissance schools but was instructed to remit the amount provided by the State to the renaissance schools. As noted by the School District, the required reports were not provided by the renaissance schools. Effect or Potential Effect Noncompliance with Uniform Guidance, Section CFR 200.331(d) and there?s a possibility that Coronavirus Relief Funds were not expended for approved purposes. Cause The School District requested information from the renaissance schools but nothing was provided. Identification as a Repeat Finding The condition did not exist in the immediately preceding fiscal year. Recommendation That the School District comply with Uniform Guidance, Section CFR 200.331(d) by obtaining subrecipient monitoring reports for Federal awards that are passed through to renaissance schools. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2021-006 Information on the Federal Program Special Education Cluster: I.D.E.A. Part B ? Basic Federal Assistance Listing No. 84.027 I.D.E.A. Part B ? Preschool Federal Assistance Listing No. 84.173 Criteria or Specific Requirement Individuals with Disabilities Education Act (I.D.E.A.), section CFR 300.203(b)(2) requires that a Local Education Agency must ensure that the amount of funds (local or state/local) it budgets for the education of children with disabilities in the year of the application is at least the same, either in total or per capita, as the amount is spent for that purpose in the most recent year for which fiscal information is available. Condition The School District incorrectly reported expenditures and budget amounts on its maintenance of effort (M.O.E.) calculation reported to the State. This resulted in the School District not providing accurate information to the State that is used to determine if the maintenance of effort requirements were met as required by the Individuals with Disabilities Education Act (I.D.E.A.), section CFR 300.203(b)(2) Questioned Costs None Context On it?s I.D.E.A. grant application, maintenance of effort calculation, the School District included numbers as 2018-19 expenditures that did not agree with it?s audited records for ?Tuition to Other LEAs within the State in a Special Education Program? and ?Contracted Services ? Special Education ESCs, CTSA?. Additionally, several budget categories recorded in the 2019-20 and 2020-21 budget columns, did not agree with the School District?s approved budgets for the respective fiscal years. Effect or Potential Effect The School District did not comply with Section CFR 300.203(b)(2) requirements and by failing to meet the M.O.E. standards, the State may be required to repay the U.S. Department of Education and the State may require reimbursement from the School District. Cause Unknown Identification as a Repeat Finding The condition did not exist in the immediately preceding fiscal year. Recommendation That the School District comply with Individuals with Disabilities Education Act (I.D.E.A.), section CFR 300.203(b)(2) requirements by filing an I.D.E.A. grant application, maintenance of effort calculation, that includes expenditures and budget amounts that agree with School District records . View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2020-002 (See Section 2) Information on the Federal Program E.S.S.A. ? Title I C.F.D.A. No. 84.010 E.S.S.A. ? School Improvement Grants C.F.D.A. No. 84.010 Special Education Cluster: I.D.E.A. Part B ? Basic C.F.D.A. No. 84.027 I.D.E.A. Part B ? Preschool C.F.D.A. No. 84.173 Criteria or Specific Requirement The State Department of Education requires that school districts maintain a capital assets record that accounts for all assets whose historical value or estimated historical value is at least $2,000.00. Condition The School District did not provide a capital asset record that properly accounts for assets owned by the School District, properly calculates depreciation expense, detail depreciation expense by function and identify assets acquired with federal funds for the school year ended June 30, 2020 as required by the State Department of Education. Questioned Costs Could not be determined. Context The School District contracted with an independent company to provide an accounting record for its capital assets that would meet all of the State Department of Education requirements. A review of the record by School District personnel determined that the record was significantly inaccurate and incomplete. As a result, the record was not provided for audit. Effect or Potential Effect Because a capital asset record was not provided for audit, capital assets, depreciation expense and net position?investment in capital assets for the School District?s governmental activities, business-type activities and proprietary-enterprise fund as of and for the school year ended June 30, 2020 are materially misstated. As a result, an adverse opinion is rendered for the School District?s governmental activities, business-type activities and proprietary-enterprise fund. Cause As determined by School District personnel, the independent company?s record of the School District?s capital assets, did not accurately account for the School District?s assets, did not calculate depreciation expense properly, did not provide depreciation expense by function and did not identify capital assets acquired with federal grant funds. Identification as a Repeat Finding The condition existed in the immediately preceding fiscal year ? See Finding No. 2019-002. Recommendation That the School District maintain a capital asset record that accounts for all assets owned by the School District, properly calculates depreciation expense, reports depreciation expense by function and identifies capital assets acquired with federal grant funds as required by the State Department of Education. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2020-009 Information on the Federal Program E.S.S.A. ? Title I C.F.D.A. No. 84.010 E.S.S.A. ? School Improvement Grants C.F.D.A. No. 84.010 Criteria or Specific Requirement Federal CFR 2 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It further states that the records must support the distribution of employee?s salary or wages among specific activities or cost objectives if the employee works more than one federal award or non-federal activity. Condition The School District did not provide proper documentation supporting salaries and wages for the work performed on Title I activities as required by CFR 2 200.430. In addition, documentation supporting stipends and extra compensation paid and charged to Title I was not available. Questioned Costs Known questioned costs totaled $14,713.05. Context Because the School District could not provide adequate documentation, we could not determine if several employee salaries and wages were properly charged to the Title I program. Additionally, original payroll information related to stipends and extra compensation charged to Title I was not available and as a result, our test of these charges could not be performed. Effect or Potential Effect Title I expenses may have been incorrectly charged to the program. Cause Unknown Identification as a Repeat Finding The condition existed in the immediately preceding fiscal year ? See Finding No. 2019-011. Recommendation That the School District require and maintain proper documentation that supports salaries and wages, stipends and extra compensation that are charged to the Title I program as required by CFR 2 200.430. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2020-010 Information on the Federal Program Child Nutrition Cluster: School Breakfast Program C.F.D.A. No. 10.553 National School Lunch Program C.F.D.A. No. 10.555 After School Snack Program C.F.D.A. No. 10.555 Summer Food Service Program for Children C.F.D.A. No. 10.559 Criteria or Specific Requirement The Office of Management and Budget?s Matrix of Compliance Requirements identifies requirements addressed in the Compliance Supplement. One area addressed is program income. Program income must be properly determined and calculated in accordance supporting documentation. Condition Food Service daily meal count reports did not agree with the School District?s edit check worksheets that detail the number of meals served and provide the numbers used to determine the amount of Federal reimbursement. Questioned Costs N/A - None Context Numerous differences were noted during our test of daily cash receipts reports compared to the monthly edit check worksheets. The overall differences were: Breakfast -123 Lunches -102 Effect or Potential Effect The School District did not request reimbursement for the correct number of meals served and as a result did not receive the proper amount of reimbursement. Cause Unknown Identification as a Repeat Finding The condition did not exist in the immediately preceding fiscal year. Recommendation That the School District?s edit check worksheets agree with the food service daily meal count reports in an effort to request the appropriate amount of Federal reimbursement. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2020-011 Information on the Federal Program Special Education Cluster: I.D.E.A. Part B ? Basic C.F.D.A. No. 84.027 I.D.E.A. Part B ? Preschool C.F.D.A. No. 84.173 Criteria or Specific Requirement Federal CFR 2 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It further states that the records must support the distribution of employee?s salary or wages among specific activities or cost objectives if the employee works more than one federal award or non-federal activity. Condition The School District did not provide proper documentation supporting salaries and wages for the work performed on I.D.E.A. activities as required by CFR 2 200.430. In addition, documentation supporting stipends and extra compensation paid and charged to I.D.E.A. was not available. Questioned Costs Known questioned costs totaled $13,516.65. Context Because the School District could not provide adequate documentation, we could not determine if several employee salaries and wages were properly charged to the I.D.E.A. program. Additionally, original payroll information related to stipends and extra compensation charged to I.D.E.A. was not available and as a result, our test of these charges could not be performed. Effect or Potential Effect I.D.E.A. expenses may have been incorrectly charged to the program. Cause Unknown Identification as a Repeat Finding The condition did not exist in the immediately preceding fiscal year. Recommendation That the School District require and maintain proper documentation that supports salaries and wages, stipends and extra compensation that are charged to the I.D.E.A. program as required by CFR 2 200.430. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2019-002 (Finding No. 2018-004) (See Section 2) Information on the Federal and State Program E.S.S.A. ? Title I C.F.D.A. No. 84.010 E.S.S.A. ? School Improvement Grants C.F.D.A. No. 84.010 I.D.E.A. Part B ? Basic C.F.D.A. No. 84.027 I.D.E.A. Part B ? Preschool C.F.D.A. No. 84.173 Criteria or Specific Requirement The State Department of Education requires districts to maintain a capital assets record that accounts for all assets whose historical value or estimated historical value is at least $2,000.00. Condition The School District?s capital asset record for the school year ended June 30, 2019 did not properly account for the assets owned by the School District, did not properly calculate depreciation expense, did not provide depreciation expense by function and did not identify assets purchased with federal funds as required by the State Department of Education. Questioned Costs Could not be determined. Context The capital asset record for the school year ended June 30, 2019 included capital assets (schools) that are no longer School District assets, depreciation expense that was clearly inaccurate and not reported by function and asset values that were incorrect. Additionally, capital assets acquired with federal grant funds were not identified. Because the capital asset record is materially misstated, an audit was not performed for the governmental activities, business-type activities and proprietary?enterprise fund. The capital asset record was provided by an independent company and it was determined that the record was significantly inaccurate and incomplete. Effect Because of the above noted items, capital assets, depreciation expense and net position?investment in capital assets for the School District?s governmental activities, business-type activities and proprietary-enterprise fund as of and for the school year ended June 30, 2019 are materially misstated. As a result, an adverse opinion is rendered for the School District?s governmental activities, business-type activities and proprietary-enterprise fund. Cause The capital asset report provided by the independent company did not accurately account for the School District?s assets, did not calculate depreciation expense properly, did not provide depreciation expense by function and did not identify capital assets acquired with federal grant funds. Recommendation That the School District maintain a capital asset record that accounts for all assets owned by the School District, properly calculates depreciation expense, reports depreciation expense by function and identifies capital assets

Finding No. 2019-011 Information on the Federal Program E.S.S.A. ? Title I C.F.D.A. No. 84.010 E.S.S.A. ? School Improvement Grants C.F.D.A. No. 84.010 Criteria or Specific Requirement Federal CFR 2 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It further states that the records must support the distribution of employee?s salary or wages among specific activities or cost objectives if the employee works more than one federal award or non-federal activity. Condition The School District did not provide proper documentation supporting salaries and wages for the work performed on Title I activities as required by CFR 2 200.430. In addition, documentation supporting stipends and extra compensation paid and charged to Title I was not available. Questioned Costs Known questioned costs totaled $543,291.22. Context Employee salaries, charged 100% to Title I, must complete a semi-annual certification. The School District improperly utilized semi-annual certifications to support employee salaries that were split to other federal and nonfederal activities. Split charges were determined based on the School Districts payroll records. Additionally, original payroll information related to stipends and extra compensation charged to Title I was not available and as a result, our test of these charges could not be performed. Effect Title I expenses may have been incorrectly charged to the program. Cause Unknown Recommendation That the School District require and maintain proper documentation that supports salaries and wages, stipends and extra compensation that are charged to the Title I program as required by CFR 2 200.430. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

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