FAC Explorer

Audit 28206

FY End
2022-06-30
Total Expended
$3.59M
Findings
4
Programs
14
Organization: Town of Swansea (MA)
Year: 2022 Accepted: 2023-05-07
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32380 2022-002 Material Weakness - H
32381 2022-001 Material Weakness - F
608822 2022-002 Material Weakness - H
608823 2022-001 Material Weakness - F

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $249,233 - 0
10.553 School Breakfast Program $186,633 - 0
21.019 Covid-19 Coronavirus Aid, Relief, and Economic Security Act (cares) $151,265 Yes 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $136,787 - 0
93.778 Medical Assistance Program $115,172 - 0
84.027 Special Education_grants to States $92,711 - 0
21.019 Covid-19 Coronavirus Relief Fund School Reopening $62,619 Yes 1
84.425 Covid-19 Education Stabilization Fund $15,847 Yes 0
84.367 Improving Teacher Quality State Grants $11,250 - 0
84.196 Education for Homeless Children and Youth $6,809 - 0
84.173 Special Education_preschool Grants $6,719 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4,597 - 0
10.555 National School Lunch Program $2,929 - 0
84.424 Student Support and Academic Enrichment Program $578 - 0

Contacts

Name Title Type
YDNVLA8EHJH7 Tracy Jo Anderson Auditee
5086796489 James Piotrowski Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 U.S. DEPARTMENT OF AGRICULTURE Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Swansea, Massachusetts under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Swansea, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Swansea, Massachusetts. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with the exception of Assistance Listings 21.019 and 21.027, which follow criteria determined by the United States Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Town of Swansea, Massachusetts did not elect to use the 10-percent de minimis indirect cost rate identified in ?200.414 of the Uniform Guidance The amount reported for the National School Lunch Program Noncash Assistance (Commodities) represents non-monetary assistance and is reported in the schedule at the fair market value of the commodities received. The amounts reported for the National School Lunch Program Cash Assistance, and School Breakfast Program Cash Assistance programs represent cash receipts from federal reimbursements.
Title: NOTE 4 U.S DEPARTMENT OF HEALTH AND HUMAN SERVICES Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Swansea, Massachusetts under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Swansea, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Swansea, Massachusetts. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with the exception of Assistance Listings 21.019 and 21.027, which follow criteria determined by the United States Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Town of Swansea, Massachusetts did not elect to use the 10-percent de minimis indirect cost rate identified in ?200.414 of the Uniform Guidance The amount reported for the School-Based Medicaid Reimbursement Program represents federal reimbursements for the Administrative Activity Claims.
Title: NOTE 5 U.S. DEPARTMENT OF HOMELAND SECURITY Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Swansea, Massachusetts under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Swansea, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Swansea, Massachusetts. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with the exception of Assistance Listings 21.019 and 21.027, which follow criteria determined by the United States Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Town of Swansea, Massachusetts did not elect to use the 10-percent de minimis indirect cost rate identified in ?200.414 of the Uniform Guidance The amounts reported for the Emergency Management Performance Grant Programs represent cash receipts from federal reimbursements.

Finding Details

Finding 2022-002
2022 ? 002 ? Period of Performance Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus Relief Funds Assistance Listing Number: 21.019 Federal Award Identification Number and Year: Not Avaialble Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): Not Available Award Period: July 1, 2021-December 31, 2021 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Noncompliance (Other Matter) Criteria or specific requirement: The compliance supplement developed by the U.S. Department of the Treasury indicates the Coronavirus Relief Fund was available to eligible local governments to cover costs which were incurred during the period from March 1, 2020 through December 31, 2021. Condition: The Town charged expenditures to the Coronavirus Relief Fund for expenditures incurred outside of the approved time period. Questioned costs: Known questioned costs total $2,714. Context: Our testing of allowable costs/cost principles identified expenditures obligated subsequent to December 31, 2021. Cause: The Town?s internal controls over compliance did not prevent the expenditures from being charged to Coronavirus Relief Funds after the approved time period. Effect: Noncompliance with period of performance compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend the Town strengthen its internal controls over compliance to ensure allowable costs charged to federal programs are incurred during approved performance periods. Views of responsible officials: Understood.
Finding 2022-001
2022 ? 001 ? Equipment/Real Property Management Federal Agency: U.S. Department of Education Federal Program Name: Elementary and Secondary School Emergency Relief Funds (ESSER) Assistance Listing Number: 84.425D and 84.425U Federal Award Identification Number and Year: Not Available. Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 113-377682-2021-0292; 115-497747-2021-0292; 115-561133-2022-0292 Award Period: July 1, 2021-June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The management requirements of Title 2 of the U.S. Code of Federal Regulations, ?200.313(d) indicate that property records must be maintained for equipment acquired under a federal award. Such property records should include the acquisition date, location, use, condition, identification number, and the cost and source of funding of the property. Condition: The Town?s ESSER grant awards included expenditures for heating, ventilation, and air conditioning (HVAC) building improvements at the Town?s various public schools. The Town did not maintain property records for such building improvements in accordance with the management requirements of ?200.313(d). Questioned costs: None identified. Context: Our testing of allowable costs/cost principles identified various expenditures for building improvements. While such costs were allowable and approved by the awarding agency, the related building improvements were not added to the property records based on our inquiries with management. Cause: The Town did not apply its standard procedures for other property and equipment purchased with federal awards in a similar manner to the HVAC building improvements. Effect: Material noncompliance with equipment and real property management compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend the Town apply its procedures for the management of equipment and real property purchased with federal awards to all expenditures of this type; including HVAC and other building improvements. Views of responsible officials: All purchases that need to be identified as equipment and asset tagged will have the proper labeling.
Finding 2022-002
2022 ? 002 ? Period of Performance Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus Relief Funds Assistance Listing Number: 21.019 Federal Award Identification Number and Year: Not Avaialble Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): Not Available Award Period: July 1, 2021-December 31, 2021 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Noncompliance (Other Matter) Criteria or specific requirement: The compliance supplement developed by the U.S. Department of the Treasury indicates the Coronavirus Relief Fund was available to eligible local governments to cover costs which were incurred during the period from March 1, 2020 through December 31, 2021. Condition: The Town charged expenditures to the Coronavirus Relief Fund for expenditures incurred outside of the approved time period. Questioned costs: Known questioned costs total $2,714. Context: Our testing of allowable costs/cost principles identified expenditures obligated subsequent to December 31, 2021. Cause: The Town?s internal controls over compliance did not prevent the expenditures from being charged to Coronavirus Relief Funds after the approved time period. Effect: Noncompliance with period of performance compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend the Town strengthen its internal controls over compliance to ensure allowable costs charged to federal programs are incurred during approved performance periods. Views of responsible officials: Understood.
Finding 2022-001
2022 ? 001 ? Equipment/Real Property Management Federal Agency: U.S. Department of Education Federal Program Name: Elementary and Secondary School Emergency Relief Funds (ESSER) Assistance Listing Number: 84.425D and 84.425U Federal Award Identification Number and Year: Not Available. Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 113-377682-2021-0292; 115-497747-2021-0292; 115-561133-2022-0292 Award Period: July 1, 2021-June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The management requirements of Title 2 of the U.S. Code of Federal Regulations, ?200.313(d) indicate that property records must be maintained for equipment acquired under a federal award. Such property records should include the acquisition date, location, use, condition, identification number, and the cost and source of funding of the property. Condition: The Town?s ESSER grant awards included expenditures for heating, ventilation, and air conditioning (HVAC) building improvements at the Town?s various public schools. The Town did not maintain property records for such building improvements in accordance with the management requirements of ?200.313(d). Questioned costs: None identified. Context: Our testing of allowable costs/cost principles identified various expenditures for building improvements. While such costs were allowable and approved by the awarding agency, the related building improvements were not added to the property records based on our inquiries with management. Cause: The Town did not apply its standard procedures for other property and equipment purchased with federal awards in a similar manner to the HVAC building improvements. Effect: Material noncompliance with equipment and real property management compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend the Town apply its procedures for the management of equipment and real property purchased with federal awards to all expenditures of this type; including HVAC and other building improvements. Views of responsible officials: All purchases that need to be identified as equipment and asset tagged will have the proper labeling.