FAC Explorer

Audit 306406

FY End
2023-06-30
Total Expended
$3.54M
Findings
4
Programs
11
Organization: Town of Swansea (MA)
Year: 2023 Accepted: 2024-05-16
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
397024 2023-002 Significant Deficiency - N
397025 2023-003 Significant Deficiency - I
973466 2023-002 Significant Deficiency - N
973467 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $561,546 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $282,292 Yes 0
84.010 Title I Grants to Local Educational Agencies $156,377 - 0
10.553 School Breakfast Program $107,973 - 0
93.778 Medical Assistance Program $73,236 - 0
10.555 National School Lunch Program $62,949 - 0
84.027 Special Education_grants to States $22,389 - 0
84.424 Student Support and Academic Enrichment Program $18,691 - 0
21.019 Coronavirus Relief Fund $13,910 - 0
84.367 Improving Teacher Quality State Grants $12,735 - 0
84.173 Special Education_preschool Grants $3,883 - 0

Contacts

Name Title Type
YDNVLA8EHJH7 Tracy Jo Anderson Auditee
5086782981 Jim Piotrowski Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Basis of Presentation 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 Listing No. 21.019, which follows 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 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, 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). 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.
Title: Note 3 U.S. Department of Agriculture 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 Listing No. 21.019, which follows 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, School Breakfast Program – Cash Assistance, and Supply Chain Assistance programs represent cash receipts from federal reimbursements.
Title: Note 4 U.S. Department of Health and Human Services 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 Listing No. 21.019, which follows 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.

Finding Details

Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: Not available. Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 115-561133-2022-0292 Award Period: October 1, 2021 through September 30, 2024 Compliance Requirement: Special Tests and Provisions Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or Specific Requirement: Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Internal controls should be designed and implemented to prevent or detect noncompliance with this requirement. Condition: The Town had two (2) construction projects funded by the federal program during the fiscal year during which laborers were hired to work on the projects. The Town did not maintain documentation supporting that the appropriate certified payrolls were obtained and reviewed to ensure the prevailing wage rates paid to such laborers were met or exceeded. Questioned Costs: Unknown Context: The Town did not obtain the appropriate certified payrolls nor was any review documented ensuring appropriate wage rates were being charged for the projects. Cause: Internal controls were not implemented to ensure the certified payrolls were obtained, reviewed, and documented in accordance with the provisions of the federal program. Effect: Noncompliance with the federal program occurred. Repeat Finding: No. Recommendation: We recommend the Town implement internal controls to ensure the certified payrolls are received from the contractors on applicable projects and reviewed by appropriate personnel. The review should be documented. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Not available. Pass-Through Agencies: Massachusetts Department of Administration and Finance; Bristol County Pass-Through Number(s): Not Available Award Period: March 3, 2021 through December 31, 2026 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Title 2 of the U.S. Code of Federal Regulations (CFR), Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Internal controls should be designed and implemented to prevent or detect noncompliance with this requirement. Condition: The Town did not obtain evidence supporting their verification that entities were not suspended, debarred, or otherwise excluded from participating in the grant award transactions. Questioned costs: None. Context: The Town did not obtain evidence of verification of the suspension and debarment status for three (3) of four (4) entities to which the Town incurred expenditures in excess of $25,000. Cause: Internal controls were not implemented to ensure documented evidence was obtained regarding the suspension and debarment status for all entities receiving federal funds in excess of $25,000 from the Town. Effect: The Town’s risk of noncompliance with the federal award program was elevated. It was later verified the entities in question were not suspended or debarred. Repeat Finding: No. Recommendation: We recommend the Town ensure documentation be obtained supporting the suspension and debarment status of entities to which the Town expends greater than $25,000. Such documentation could include (1) a history of searching SAM.gov exclusions, (2) certification from the entity, or (3) a clause or condition included in the contract or subaward with the entity. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: Not available. Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 115-561133-2022-0292 Award Period: October 1, 2021 through September 30, 2024 Compliance Requirement: Special Tests and Provisions Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or Specific Requirement: Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Internal controls should be designed and implemented to prevent or detect noncompliance with this requirement. Condition: The Town had two (2) construction projects funded by the federal program during the fiscal year during which laborers were hired to work on the projects. The Town did not maintain documentation supporting that the appropriate certified payrolls were obtained and reviewed to ensure the prevailing wage rates paid to such laborers were met or exceeded. Questioned Costs: Unknown Context: The Town did not obtain the appropriate certified payrolls nor was any review documented ensuring appropriate wage rates were being charged for the projects. Cause: Internal controls were not implemented to ensure the certified payrolls were obtained, reviewed, and documented in accordance with the provisions of the federal program. Effect: Noncompliance with the federal program occurred. Repeat Finding: No. Recommendation: We recommend the Town implement internal controls to ensure the certified payrolls are received from the contractors on applicable projects and reviewed by appropriate personnel. The review should be documented. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Not available. Pass-Through Agencies: Massachusetts Department of Administration and Finance; Bristol County Pass-Through Number(s): Not Available Award Period: March 3, 2021 through December 31, 2026 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Title 2 of the U.S. Code of Federal Regulations (CFR), Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Internal controls should be designed and implemented to prevent or detect noncompliance with this requirement. Condition: The Town did not obtain evidence supporting their verification that entities were not suspended, debarred, or otherwise excluded from participating in the grant award transactions. Questioned costs: None. Context: The Town did not obtain evidence of verification of the suspension and debarment status for three (3) of four (4) entities to which the Town incurred expenditures in excess of $25,000. Cause: Internal controls were not implemented to ensure documented evidence was obtained regarding the suspension and debarment status for all entities receiving federal funds in excess of $25,000 from the Town. Effect: The Town’s risk of noncompliance with the federal award program was elevated. It was later verified the entities in question were not suspended or debarred. Repeat Finding: No. Recommendation: We recommend the Town ensure documentation be obtained supporting the suspension and debarment status of entities to which the Town expends greater than $25,000. Such documentation could include (1) a history of searching SAM.gov exclusions, (2) certification from the entity, or (3) a clause or condition included in the contract or subaward with the entity. Views of Responsible Officials: There is no disagreement with the audit finding.