FAC Explorer

Audit 293943

FY End
2023-06-30
Total Expended
$1.17M
Findings
6
Programs
3
Organization: Town of Bridgwater, Vermont (VT)
Year: 2023 Accepted: 2024-03-07
Auditor: Pace & Hawley LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
374344 2023-001 Significant Deficiency - AB
374345 2023-002 Significant Deficiency - AB
374346 2023-003 Significant Deficiency - I
950786 2023-001 Significant Deficiency - AB
950787 2023-002 Significant Deficiency - AB
950788 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $821,456 Yes 3
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $208,910 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $144,001 - 0

Contacts

Name Title Type
YXK6H8Y89KR1 Melissa Spear Auditee
8026723334 Nathan Hawley Auditor
No contacts on file

Notes to SEFA

Title: A. Basis of presentation Accounting Policies: A. Basis of presentation – The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards of the Town of Bridgewater, Vermont under programs of the federal government for the year ended June 30, 2023. 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). B. Summary of significant accounting policies - The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Town and is presented on the modified cash basis of accounting. Under the modified cash basis of accounting, expenditures are reported when paid in cash. However, in addition to cash basis expenditures, the value of the expenditures associated with the Water and Waste Disposal System for Rural Communities includes the value of new loans received. C. Indirect cost rate - The Town did not elect to use the 10% de minimis cost rate. D. Federal loans – The Town included $645,000 in the schedule of federal expenditures for new federal loans received during the year ended June 30, 2023. Federal loan balances at the end of the year were $645,000. De Minimis Rate Used: N Rate Explanation: The entity did not apply any indirect costs to federal programs. Basis of presentation – The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards of the Town of Bridgewater, Vermont under programs of the federal government for the year ended June 30, 2023. 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).
Title: B. Summary of significant accounting policies Accounting Policies: A. Basis of presentation – The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards of the Town of Bridgewater, Vermont under programs of the federal government for the year ended June 30, 2023. 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). B. Summary of significant accounting policies - The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Town and is presented on the modified cash basis of accounting. Under the modified cash basis of accounting, expenditures are reported when paid in cash. However, in addition to cash basis expenditures, the value of the expenditures associated with the Water and Waste Disposal System for Rural Communities includes the value of new loans received. C. Indirect cost rate - The Town did not elect to use the 10% de minimis cost rate. D. Federal loans – The Town included $645,000 in the schedule of federal expenditures for new federal loans received during the year ended June 30, 2023. Federal loan balances at the end of the year were $645,000. De Minimis Rate Used: N Rate Explanation: The entity did not apply any indirect costs to federal programs. Summary of significant accounting policies - The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Town and is presented on the modified cash basis of accounting. Under the modified cash basis of accounting, expenditures are reported when paid in cash. However, in addition to cash basis expenditures, the value of the expenditures associated with the Water and Waste Disposal System for Rural Communities includes the value of new loans received.
Title: C. Indirect cost rate Accounting Policies: A. Basis of presentation – The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards of the Town of Bridgewater, Vermont under programs of the federal government for the year ended June 30, 2023. 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). B. Summary of significant accounting policies - The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Town and is presented on the modified cash basis of accounting. Under the modified cash basis of accounting, expenditures are reported when paid in cash. However, in addition to cash basis expenditures, the value of the expenditures associated with the Water and Waste Disposal System for Rural Communities includes the value of new loans received. C. Indirect cost rate - The Town did not elect to use the 10% de minimis cost rate. D. Federal loans – The Town included $645,000 in the schedule of federal expenditures for new federal loans received during the year ended June 30, 2023. Federal loan balances at the end of the year were $645,000. De Minimis Rate Used: N Rate Explanation: The entity did not apply any indirect costs to federal programs. The Town did not elect to use the 10% de minimis cost rate.
Title: D. Federal loans Accounting Policies: A. Basis of presentation – The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards of the Town of Bridgewater, Vermont under programs of the federal government for the year ended June 30, 2023. 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). B. Summary of significant accounting policies - The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Town and is presented on the modified cash basis of accounting. Under the modified cash basis of accounting, expenditures are reported when paid in cash. However, in addition to cash basis expenditures, the value of the expenditures associated with the Water and Waste Disposal System for Rural Communities includes the value of new loans received. C. Indirect cost rate - The Town did not elect to use the 10% de minimis cost rate. D. Federal loans – The Town included $645,000 in the schedule of federal expenditures for new federal loans received during the year ended June 30, 2023. Federal loan balances at the end of the year were $645,000. De Minimis Rate Used: N Rate Explanation: The entity did not apply any indirect costs to federal programs. A. Federal loans – The Town included $645,000 in the schedule of federal expenditures for new federal loans received during the year ended June 30, 2023. Federal loan balances at the end of the year were $645,000.

Finding Details

Finding 2023-001
Federal program: Water and Waste Disposal Systems for Rural Communities Assistance listing number: 10.760 Federal agency: U.S. Department of Agriculture Pass-through entity: n/a – direct award Pass-through entity identification number: n/a Type of Finding: Significant deficiency in internal control over compliance. Criteria: Per 2 CFR Section 200.302(b)(6), and 200.302(b)(7), a non-federal agency must establish written procedures related to the following: receipt of payment of federal funds and determination of allowability of costs in accordance with Subpart E – Cost Principles, respectively. Condition: The Town has not formally adopted certain required written financial management policies as outlined in the Code of Federal Regulations. Cause: Town personnel were unaware of this requirement. Effect: Transactions could occur that did not comply with federal regulations. Questioned costs: None Repeat finding: The Town of Bridgewater, Vermont was not required to have a Single Audit for its prior fiscal year. Accordingly, this is not a repeat finding. Perspective information: The finding was based on requesting the Town’s written financial policies related to federal compliance and therefore was not the result of a statistical sample. Recommendation: The auditor recommends that the Town obtain an understanding of the required written policies in the Code of Federal Regulations as applicable to its federal programs, create and formally adopt those required policies.
Finding 2023-002
Federal program: Water and Waste Disposal Systems for Rural Communities Assistance listing number: 10.760 Federal agency: U.S. Department of Agriculture Pass-through entity: n/a – direct award Pass-through entity identification number: n/a Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.302 “Financial Management” requires the Town’s accounting system to identify all Federal awards received and expended and the Federal program under which they were received. Condition: The Town’s accounting system did not separate Federal expenditures from non-federal expenditures. Cause: Due to change in personnel, different individuals were involved in the Treasury function of the Town during the fiscal year and therefore employees did not have sufficient time, attention, and knowledge to effectively record federal expenditures in the Town’s accounting system. Effect: Federal expenditures are combined with non-federal expenditures in the general ledger. Questioned costs: None Repeat finding: The Town of Bridgewater, Vermont was not required to have a Single Audit for its prior fiscal year. Accordingly, this is not a repeat finding. Perspective information: The Town normally spends less than $750,000 in federal expenditures and therefore usually is not required to have a Single Audit. For 2023, a Single Audit was required due to an emergency wastewater improvement project. Recommendation: The structure of Town’s accounting system should be modified to separate Federal and non-federal expenditures.
Finding 2023-003
Federal program: Water and Waste Disposal Systems for Rural Communities Assistance listing number: 10.760 Federal agency: U.S. Department of Agriculture Pass-through entity: n/a – direct award Pass-through entity identification number: n/a Type of Finding: Significant deficiency in internal control over compliance. Criteria: Per 2 CFR Section 200.214, non-federal entities are subject to the non-procurement and suspension regulations restricting awards, subawards, and contracts with certain parties that are debarred or suspended. Condition: The Town does not have a formal procedure to determine that contractors are not debarred, suspended or otherwise excluded or ineligible for participation in Federal assistance programs or activities. Cause: Town personnel were unaware of this requirement. Effect: Transactions could occur that did not comply with federal regulations. Questioned costs: None Repeat finding: The Town of Bridgewater, Vermont was not required to have a Single Audit for its prior fiscal year. Accordingly, this is not a repeat finding. Perspective information: The finding was based on requesting the Town’s policies and procedures related to federal compliance and therefore was not the result of a statistical sample. Recommendation: The auditor recommends that the Town obtain an understanding of the required procedures in the Code of Federal Regulations as applicable to its federal programs, create and formally adopt those required procedures.
Finding 2023-001
Federal program: Water and Waste Disposal Systems for Rural Communities Assistance listing number: 10.760 Federal agency: U.S. Department of Agriculture Pass-through entity: n/a – direct award Pass-through entity identification number: n/a Type of Finding: Significant deficiency in internal control over compliance. Criteria: Per 2 CFR Section 200.302(b)(6), and 200.302(b)(7), a non-federal agency must establish written procedures related to the following: receipt of payment of federal funds and determination of allowability of costs in accordance with Subpart E – Cost Principles, respectively. Condition: The Town has not formally adopted certain required written financial management policies as outlined in the Code of Federal Regulations. Cause: Town personnel were unaware of this requirement. Effect: Transactions could occur that did not comply with federal regulations. Questioned costs: None Repeat finding: The Town of Bridgewater, Vermont was not required to have a Single Audit for its prior fiscal year. Accordingly, this is not a repeat finding. Perspective information: The finding was based on requesting the Town’s written financial policies related to federal compliance and therefore was not the result of a statistical sample. Recommendation: The auditor recommends that the Town obtain an understanding of the required written policies in the Code of Federal Regulations as applicable to its federal programs, create and formally adopt those required policies.
Finding 2023-002
Federal program: Water and Waste Disposal Systems for Rural Communities Assistance listing number: 10.760 Federal agency: U.S. Department of Agriculture Pass-through entity: n/a – direct award Pass-through entity identification number: n/a Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.302 “Financial Management” requires the Town’s accounting system to identify all Federal awards received and expended and the Federal program under which they were received. Condition: The Town’s accounting system did not separate Federal expenditures from non-federal expenditures. Cause: Due to change in personnel, different individuals were involved in the Treasury function of the Town during the fiscal year and therefore employees did not have sufficient time, attention, and knowledge to effectively record federal expenditures in the Town’s accounting system. Effect: Federal expenditures are combined with non-federal expenditures in the general ledger. Questioned costs: None Repeat finding: The Town of Bridgewater, Vermont was not required to have a Single Audit for its prior fiscal year. Accordingly, this is not a repeat finding. Perspective information: The Town normally spends less than $750,000 in federal expenditures and therefore usually is not required to have a Single Audit. For 2023, a Single Audit was required due to an emergency wastewater improvement project. Recommendation: The structure of Town’s accounting system should be modified to separate Federal and non-federal expenditures.
Finding 2023-003
Federal program: Water and Waste Disposal Systems for Rural Communities Assistance listing number: 10.760 Federal agency: U.S. Department of Agriculture Pass-through entity: n/a – direct award Pass-through entity identification number: n/a Type of Finding: Significant deficiency in internal control over compliance. Criteria: Per 2 CFR Section 200.214, non-federal entities are subject to the non-procurement and suspension regulations restricting awards, subawards, and contracts with certain parties that are debarred or suspended. Condition: The Town does not have a formal procedure to determine that contractors are not debarred, suspended or otherwise excluded or ineligible for participation in Federal assistance programs or activities. Cause: Town personnel were unaware of this requirement. Effect: Transactions could occur that did not comply with federal regulations. Questioned costs: None Repeat finding: The Town of Bridgewater, Vermont was not required to have a Single Audit for its prior fiscal year. Accordingly, this is not a repeat finding. Perspective information: The finding was based on requesting the Town’s policies and procedures related to federal compliance and therefore was not the result of a statistical sample. Recommendation: The auditor recommends that the Town obtain an understanding of the required procedures in the Code of Federal Regulations as applicable to its federal programs, create and formally adopt those required procedures.