UNION PARISH SCHOOL BOARDLocal Government

Reference # and title: 2025-004 Internal Control over Allowable Costs Federal program and specific federal award identification: AL # Grant Year FEDERAL GRANTOR/ PASS-THROUGH GRANTOR/PROGRAM NAME Passed through Louisiana Department of Education Child Nutrition Cluster: School Breakfast Program 10.553 2025 National School Lunch Program 10.555 2025 Summer Food Program 10.559 2025 Criteria or specific requirement: 2 CFR section 200.430(g) requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on a Federal award and a non-Federal award. Condition found: No time certification was completed by Child Nutrition Supervisor for six months of the year. The Child Nutrition Supervisor retired in December 2024. Context: There was no documentation of time spent on the Child Nutrition Program by the Supervisor when the payroll expenditures were tested. Possible asserted effect (cause and effect): Cause: The auditor was unable to determine the cause. Effect: Unallowable costs may have been paid by federal program. Known questioned costs: The known questioned amount of unallowable cost for salary and benefits is $62,078. Known questioned costs were taken from employee’s payroll history for salary and benefits charged to federal program. Recommendation to prevent future occurrences: Monthly and semi-annual certifications of time spent on a federal program should be maintained and verified by program supervisors. Origination date and prior year reference (if applicable): This finding originated in the fiscal year ended June 30, 2025. View of responsible official: See Corrective Action Plan.

Reference # and title: 2023-002 Internal Controls Over Reporting AL#, Federal Award Title, Federal Agency, Federal Award # and Year, and the Name of the Pass-Through Entity: : AL#84.425D: COVID-19 Education Stabilization Fund, 2021: U. S. Department of Education: Passed through the Louisiana Department of Education Criteria or specific requirement: In accordance with the ESSER guidelines, the School Board is required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. The key line items include the School Board’s expenditures by ESSER subgrant, which comes from the periodic expense reports, the number of specific positions supported with ESSER funds, allocation of ESSER funds to schools and criterial used to allocate the funds to the schools and the full-time equivalent positions paid with ESSER funding. Condition found: In testing the information submitted through the Louisiana Department of Education’s portal for the other key line items, it was noted that the support provided by the School Board was not complete or did not agree with submitted information. Context: This finding appears to be systemic. Possible asserted effect (cause effect): Cause: The School Board did not maintain all records in a secure location used to complete the report and did not reconcile the information submitted to the general ledger. Effect: The School Board did not meet all federal compliance requirements regarding special reporting. Recommendations to prevent future occurrences: The School Board should establish procedures to ensure all information used in completing reports to LDOE is not only maintained but also reconciled to their accounting records. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2023. View of Responsible Official: See Corrective Action Plan on pages 108-111.

Reference # and title: 2023-003 Internal Controls Over Procurement, Suspension and Debarment AL#, Federal Award Title, Federal Agency, Federal Award # and Year, and the Name of the Pass-Through Entity: : AL #84.027: Special Education Grants to States (IDEA), 2023: U. S. Department of Education: Passed through the Louisiana Department of Education Criteria or specific requirement: In accordance with Special Education (IDEA) guidelines, for covered transactions the School Board is required to verify that entities are not suspended, debarred, or otherwise excluded from receiving federal funding. Condition found: In testing internal controls it was noted that no documentation was maintained for suspension and debarment searches of vendors. Context: This finding appears to be systemic. Possible asserted effect (cause effect): Cause: The School Board did not maintain records of verification that vendors were not suspended or debarred from federal funding. Effect: The School Board did not meet all federal compliance requirements over procurement, suspension, and debarment. Recommendations to prevent future occurrences: The School Board should establish procedures to ensure all vendors that receive significant federal dollars are not suspended or debarred from federal funding and retain documentation of verification. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2023. View of Responsible Official: See Corrective Action Plan on pages 108-111.

Reference # and title: 2022-005 Child Nutrition Program Income and Expense Report AL#, Federal Award Title, Federal Agency, Federal Award # and Year, and the Name of the Pass-Through Entity: AL#10.553, 10.555, and 10.559: Child Nutrition Cluster: U. S. Department of Agriculture: Passed through the Louisiana Department of Education. Criteria or specific requirement: The Louisiana Department of Education requires the local education agency to file an income and expense report annually. Condition found: The amount reported for federal reimbursement appears to be a keypunch error. The amount reported was $12,015,022 which is overstated. Also, the amount reported for supply chain assistance funds was the emergency cost funds that were received and not the supply chain assistance. Federal revenue in the School Food Service fund was understated $292,873 because receipts during the year for special funds received such as supply chain assistance and emergency costs were not recorded as revenue in the School Food Service fund when received.Context: This report is filed annually. Possible asserted effect (cause and effect): Cause: The report was not reviewed by someone other than the preparer. Effect: The report appears to have a keypunch error. Recommendation to prevent future occurrences: The report should be reviewed by someone other than the preparer. Origination date and prior year reference (if applicable): This finding originated in the current year. View of Responsible Official: See Corrective Action Plan on pages 107-111.

Reference # and title: 2022-006 Internal Controls Over Allowable Costs and Cost Principles AL#, Federal Award Title, Federal Agency, Federal Award # and Year, and the Name of the Pass-Through Entity: AL# 84.287C: 21st Century Community Learning Centers: U. S. Department of Education: Passed Through the Louisiana Department of Education. Criteria or specific requirement: Expenditures should be included in the budget and supported by proper documentation such as a purchase order or contract, and should include a detail of items received. Condition found: A sample of disbursements was selected to test for internal controls over the disbursements. Two of the disbursements selected were not specifically included in the budget for the program. One of the disbursements did not include a detailed list of the payment. One item tested did not include a purchase order or contract. Context: Seventeen vendor disbursements were tested along with thirty-four payroll disbursements. The condition applies only to the vendor disbursements tested.Possible asserted effect (cause and effect): Cause: Documentation was not included in the information provided for testing. Effect: Documentation was lacking for the four disbursements noted above. Recommendation to prevent future occurrences: Adequate documentation should be maintained for each disbursement. Origination date and prior year reference (if applicable): This finding originated in the current fiscal year. View of Responsible Official: See Corrective Action Plan on pages 107-111.

Reference # and title: 2022-007 Maintenance of Equipment Records AL#, Federal Award Title, Federal Agency, Federal Award # and Year, and the Name of the Pass-Through Entity: AL# 84.425D & U: Education Stabilization Fund: U. S. Department of Education: Passed Through the Louisiana Department of Education. Criteria or specific requirement: Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including federal award identification number), the acquisition date, cost of the property, location, and any ultimate disposition data. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition found: The depreciation schedule does not include all the required information for equipment and vehicles purchased with ESSER funds. No documentation was provided of a physical inventory of items on the schedule. Context: This condition pertains to equipment and vehicles.Possible asserted effect (cause and effect): Cause: There currently is no established procedure for maintenance of the depreciation schedule nor is there a procedure for conducting a physical inventory of capital assets. Effect: The depreciation schedule currently does not have all the necessary information for identification of each asset. Recommendation to prevent future occurrences: Someone should be assigned the responsibility of maintaining the schedule and completing the columns that are presently blank. A procedure should be established for maintenance of the schedule which would include review of the general ledger for items that need to be added to the schedule and for a physical inventory of capital assets which includes how often the inventory should be performed. The best practice would be to perform a physical inventory annually.Origination date and prior year reference (if applicable): This finding originated in the current fiscal year. View of Responsible Official: See Corrective Action Plan on pages 107-111.

2021-009 Compliance and Internal Controls over Compliance ? Child Nutrition Cluster Federal Program, Assistance Listing Number and Year, Federal Agency, Pass-Through Entity Child Nutrition Cluster, Assistance Listing #10.555, 10.553, 10.555, 10.559, 2021, U.S. Department of Agriculture, Louisiana Department of Education Criteria The Code of Federal Regulations Title 2 Grants and Agreements Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 200.303 requires the School Board to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the School Board is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Condition The supporting documentation for the accrued salary amount for the year ended June 30, 2021, for Child Nutrition Cluster ($357,199) differed from the trial balance amount ($488,246) by $131,047 (questioned costs), indicating that at least one of the populations is incorrect. These factors, in conjunction with the internal control weaknesses identified in Finding 2021-001, lead us to conclude that accounting records are not accounting for school food accounts in accordance with requirements. It is impossible to identify a complete population for testing activities or costs and that records are insufficient to allow for testing of cash management compliance requirements (also refer to Finding 2021-004 related to cash). The Schedule of Expenditures of Federal Awards and the trial balance are materially misstated with respect to the Child Nutrition Cluster. The School Breakfast Program ALN 10.553 is combined in line and amount with National School Lunch Program ALN 10.555 on the Schedule of Expenditures of Federal Awards. Cause Internal controls over the Child Nutrition Cluster were not appropriately designed, implemented and/or overseen. Effect Noncompliance with the applicable, direct and material compliance requirements of Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Cash Management and Special Tests ? School Food Accounts. Questioned Costs Total $131,047 Perspective Information Material and pervasive Recommendation Effective internal control over the Federal awards should be established and maintained to provide reasonable assurance that the School Board is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of Federal Awards. Management Response Refer to the Corrective Action Plan for Current Year Audit Findings and Questioned Costs

2021-010 Compliance and Internal Controls over Compliance ? Title I Federal Program, Assistance Listing Number and Year, Federal Agency, Pass-Through Entity Title I, Assistance Listing #84.010, 2021, U.S. Department of Education, Louisiana Department of Education Criteria The Code of Federal Regulations Title 2 Grants and Agreements Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 200.303 requires the School Board to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the School Board is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Condition The Schedule of Expenditures of Federal Awards and the trial balance are materially misstated with respect to the Title I program. Per confirmation with LDOE, the School Board received $110,178 (questioned costs) Title 4 SSAE funds that the School Board included in Title I funds. The reimbursement requests posted in eGMS identified $139,179 Title IV SSAE funds disbursed to the School Board. The expenditure reports submitted to LDOE for the Title I fund exceeded the reimbursement request amounts and trial balance amounts for salaries, benefits, and indirect costs by a total of $52,857. The supporting documentation for the accrued salary amount for the year ended June 30, 2021, for Title I ($517,614) differed from the trial balance amount ($537,183) for a questioned amount of $19,569. The amount reported to LDOE on the expenditure reports ($571,986) further indicating that the populations differ. It is impossible to identify a complete population for testing. Two employees known to work across multiple federal programs were charged exclusively (outside one Education Stabilization Funded stipend) to the Title I program. It is impossible to identify how much of the cumulative salaries for these two employees ($110,085 questioned costs) is overcharged to the Title I program. Cause Internal controls over the Title I program were not appropriately designed, implemented and/or overseen. Effect Noncompliance with the applicable, direct and material compliance requirements of Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Matching, Level of Effort, Earmarking and Reporting. Questioned Costs Total $239,832 Title IV funds included in Title I $139,179 Salary amounts in trial balance not supported by payroll system $19,569 Salary amounts of employees working across multiple programs $110,085 Perspective Information Material and pervasive Recommendation Effective internal control over the Federal awards should be established and maintained to provide reasonable assurance that the School Board is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of Federal Awards. Management Response Refer to the Corrective Action Plan for Current Year Audit Findings and Questioned Costs

2021-011 Compliance and Internal Controls over Compliance ? COVID-19 Education Stabilization Funds Federal Program, Assistance Listing Number and Year, Federal Agency, Pass-Through Entity COVID-19 Education Stabilization Fund (ESF), Assistance Listing #84.425, 2021, U.S. Department of Education, Louisiana Department of Education Criteria The Code of Federal Regulations Title 2 Grants and Agreements Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 200.303 requires the School Board to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the School Board is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Condition The School Board reported to us that there were no federal funds passed through to subrecipients. During our audit work, we identified three items in the COVID-19 Education Stabilization Fund reimbursement requests for expenditures of an outside agency, a private religious school. When we inquired, the School Board stated that during the 2020-21 fiscal year, Cares Act funds were budgeted to be passed through to this outside agency as follows: GEERF: $14,474; ESSERF Formula: $76,875; ESSERF Incentive: $11,527. It was believed that the amounts passed through were very close to these amounts although the School Board did not provide actual amounts or documentation to support that these amounts were passed through. The supporting documentation for the accrued salary amount for the year ended June 30, 2021, for COVID-19 Education Stabilization Fund ($436,010) differed from the trial balance amount ($458,119) by $22,109 of which $12,151 was identified as Downsville Charter leaving a remaining discrepancy in the amount of $9,957. This amount for Downsville Charter was requested as part of ESSER reimbursement requests. ESSER reimbursement request for August 2020 requested an additional $5,987 as salaries for Downsville Charter but this is not in the trial balance account for Downsville Charter. Two employees known to work across multiple federal programs were charged exclusively (outside one COVID-19 Education Stabilization Fund stipend) to the Title I program. It is impossible to identify how much of the cumulative salaries for these two employees ($110,085) is undercharged to the ESF program. We would expect that much time would have been dedicated to a large new program comprised of five grants. Cause Internal controls over the COVID-19 Education Stabilization Fund program were not appropriately designed, implemented and/or overseen. Effect Noncompliance with the applicable, direct and material compliance requirements of Activities Allowed or Unallowed, Allowable Costs / Cost Principles, and Cash Management. Questioned Costs Total $120,042 Salary amounts in trial balance not supported by payroll system $9,957 Salary amounts of employees working across multiple programs $110,085 Amounts reimbursed on behalf of outside agency $ unknown Perspective Information Material and pervasive Recommendation Effective internal control over the Federal awards should be established and maintained to provide reasonable assurance that the School Board is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of Federal Awards. Management Response Refer to the Corrective Action Plan for Current Year Audit Findings and Questioned Costs

2020-009 Internal Controls over Accounting Records First Reported 2019 Federal Program, Assistance Listing Number and Year, Federal Agency, Pass-Through Entity Child Nutrition Cluster, Assistance Listing #10.555, 10.553, 10.555, 10.559, 2021, U.S. Department of Agriculture, Louisiana Department of Education Title I, Assistance Listing #84.010, 2021, U.S. Department of Education, Louisiana Department of Education Criteria The Code of Federal Regulations Title 2 Grants and Agreements Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 200.303 requires the School Board to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the School Board is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Condition There was insufficient evidence to form an opinion on the direct and material compliance requirements for each major program due to a failure in internal controls over accounting records including the records of Federal programs. The lack of evidence is both material and pervasive and demonstrates a lack of internal control over compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Cause Internal controls over accounting processes and records were not appropriately designed, implemented and/or overseen. Effect The disclaimed opinion on the financial statement audit resulted from the School Board?s failure to provide quality, accurate records as described in the financial statement audit schedule of findings and question costs findings 2020-001 through 2020-004. The School Board?s internal control failures resulted in the inability to determine what costs were of a federal nature and, thus, we were unable to determine if the costs were allowable, if the associated activities were allowable or if the reports submitted were accurate. For the Child Nutrition Cluster, this effect applies to the direct and material compliance requirements of Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Cash Management, and Special Tests and Provisions. For the Title I program, this effect applies to the direct and material compliance requirements of Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Matching, Level of Effort, Earmarking, Reporting and Special Tests and Provisions. Questioned Costs N/A Recommendation The School Board should immediately seek the services of Certified Public Accountants with school board accounting experience to review and reconcile accounting records to ensure that records are kept in an accurate manner, provide an audit trail of all transactions, and allow for the production of accurate reports within a timely manner. The School Board should review the design and implementation of internal controls over accounting records to ensure that the accounting records are maintained appropriately going forward.

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