Audit 310251

FY End
2022-06-30
Total Expended
$5.54M
Findings
16
Programs
15
Organization: Town of Middleborough (MA)
Year: 2022 Accepted: 2024-06-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403123 2022-001 Material Weakness - A
403124 2022-001 Material Weakness - A
403125 2022-001 Material Weakness - A
403126 2022-002 Material Weakness - F
403127 2022-002 Material Weakness - F
403128 2022-002 Material Weakness - F
403129 2022-002 Material Weakness - F
403130 2022-002 Material Weakness - F
979565 2022-001 Material Weakness - A
979566 2022-001 Material Weakness - A
979567 2022-001 Material Weakness - A
979568 2022-002 Material Weakness - F
979569 2022-002 Material Weakness - F
979570 2022-002 Material Weakness - F
979571 2022-002 Material Weakness - F
979572 2022-002 Material Weakness - F

Contacts

Name Title Type
WUMFZPHJUVG2 Susan Nickerson Auditee
5089470928 Mary Sahady Auditor
No contacts on file

Notes to SEFA

Title: Massachusetts Clean Water Trust Obligation Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the Town submits to federal awarding or pass-through entities. De Minimis Rate Used: N Rate Explanation: The Town has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Town had obtained a loan through the Capitalization Grants for Clean Water State Revolving Funds (CFDA #66.458), which were used in conjunction with state matching funds from the Massachusetts Clean Water Trust for the Town’s construction related to water pollution control facility. As of June 30, 2022, the Town had an outstanding loan amount associated with the CWT obligation of $18.3 million.

Finding Details

Condition: Finding Costs Charged to the Federal Program Not Supported by Sufficient Documentation (Material Weakness – Allowable Costs) Information on the Federal Programs: Child Nutrition Cluster: 10.553, 10.555, 10.559 Questioned Costs $33,572 During testing over allowable costs, it was noted that 20 out of 40 transactions of costs charged to the federal program were not supported by documentation as required by the Uniform Guidance (2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles). Criteria: Uniform Guidance 2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles. Per 2 CFR §200.334 Retention Requirements for Records, supporting documentation must be retained for a period of three years. Cause: Documentation was not maintained for costs charged to the federal program to support that expenditures were allowable per 2 CFR 200 Subpart E Cost Principles. Effect: Potential effects include unallowed costs being charged to federal programs resulting in possible reduction in funding. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that the School Department implement a system of controls including policies and procedures on maintaining documentation for costs charged to federal award programs where supporting documentation is accessible by management or other responsible individuals.
Condition: Finding Costs Charged to the Federal Program Not Supported by Sufficient Documentation (Material Weakness – Allowable Costs) Information on the Federal Programs: Child Nutrition Cluster: 10.553, 10.555, 10.559 Questioned Costs $33,572 During testing over allowable costs, it was noted that 20 out of 40 transactions of costs charged to the federal program were not supported by documentation as required by the Uniform Guidance (2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles). Criteria: Uniform Guidance 2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles. Per 2 CFR §200.334 Retention Requirements for Records, supporting documentation must be retained for a period of three years. Cause: Documentation was not maintained for costs charged to the federal program to support that expenditures were allowable per 2 CFR 200 Subpart E Cost Principles. Effect: Potential effects include unallowed costs being charged to federal programs resulting in possible reduction in funding. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that the School Department implement a system of controls including policies and procedures on maintaining documentation for costs charged to federal award programs where supporting documentation is accessible by management or other responsible individuals.
Condition: Finding Costs Charged to the Federal Program Not Supported by Sufficient Documentation (Material Weakness – Allowable Costs) Information on the Federal Programs: Child Nutrition Cluster: 10.553, 10.555, 10.559 Questioned Costs $33,572 During testing over allowable costs, it was noted that 20 out of 40 transactions of costs charged to the federal program were not supported by documentation as required by the Uniform Guidance (2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles). Criteria: Uniform Guidance 2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles. Per 2 CFR §200.334 Retention Requirements for Records, supporting documentation must be retained for a period of three years. Cause: Documentation was not maintained for costs charged to the federal program to support that expenditures were allowable per 2 CFR 200 Subpart E Cost Principles. Effect: Potential effects include unallowed costs being charged to federal programs resulting in possible reduction in funding. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that the School Department implement a system of controls including policies and procedures on maintaining documentation for costs charged to federal award programs where supporting documentation is accessible by management or other responsible individuals.
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.
Condition: Finding Costs Charged to the Federal Program Not Supported by Sufficient Documentation (Material Weakness – Allowable Costs) Information on the Federal Programs: Child Nutrition Cluster: 10.553, 10.555, 10.559 Questioned Costs $33,572 During testing over allowable costs, it was noted that 20 out of 40 transactions of costs charged to the federal program were not supported by documentation as required by the Uniform Guidance (2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles). Criteria: Uniform Guidance 2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles. Per 2 CFR §200.334 Retention Requirements for Records, supporting documentation must be retained for a period of three years. Cause: Documentation was not maintained for costs charged to the federal program to support that expenditures were allowable per 2 CFR 200 Subpart E Cost Principles. Effect: Potential effects include unallowed costs being charged to federal programs resulting in possible reduction in funding. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that the School Department implement a system of controls including policies and procedures on maintaining documentation for costs charged to federal award programs where supporting documentation is accessible by management or other responsible individuals.
Condition: Finding Costs Charged to the Federal Program Not Supported by Sufficient Documentation (Material Weakness – Allowable Costs) Information on the Federal Programs: Child Nutrition Cluster: 10.553, 10.555, 10.559 Questioned Costs $33,572 During testing over allowable costs, it was noted that 20 out of 40 transactions of costs charged to the federal program were not supported by documentation as required by the Uniform Guidance (2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles). Criteria: Uniform Guidance 2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles. Per 2 CFR §200.334 Retention Requirements for Records, supporting documentation must be retained for a period of three years. Cause: Documentation was not maintained for costs charged to the federal program to support that expenditures were allowable per 2 CFR 200 Subpart E Cost Principles. Effect: Potential effects include unallowed costs being charged to federal programs resulting in possible reduction in funding. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that the School Department implement a system of controls including policies and procedures on maintaining documentation for costs charged to federal award programs where supporting documentation is accessible by management or other responsible individuals.
Condition: Finding Costs Charged to the Federal Program Not Supported by Sufficient Documentation (Material Weakness – Allowable Costs) Information on the Federal Programs: Child Nutrition Cluster: 10.553, 10.555, 10.559 Questioned Costs $33,572 During testing over allowable costs, it was noted that 20 out of 40 transactions of costs charged to the federal program were not supported by documentation as required by the Uniform Guidance (2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles). Criteria: Uniform Guidance 2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles. Per 2 CFR §200.334 Retention Requirements for Records, supporting documentation must be retained for a period of three years. Cause: Documentation was not maintained for costs charged to the federal program to support that expenditures were allowable per 2 CFR 200 Subpart E Cost Principles. Effect: Potential effects include unallowed costs being charged to federal programs resulting in possible reduction in funding. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that the School Department implement a system of controls including policies and procedures on maintaining documentation for costs charged to federal award programs where supporting documentation is accessible by management or other responsible individuals.
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.
Condition: Equipment Listing Not Maintained (Material Weakness – Equipment) Information on the Federal Programs: ESSER Programs: 84.425, 84.425D, 84.425W Questioned Costs N/A We noted the School Department did not maintain a complete listing of equipment purchased with federal funds and did not maintain documentation of physical inventories performed every two years. Criteria: The Uniform Guidance 2 CFR §200.313 Equipment, states that records for equipment acquired with federal funds and federally owned equipment shall be maintained and include a description of the property, the source of funding, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sales price of the property. Further, a physical inventory of all Federal equipment is required to be performed and results reconciled with the equipment records at least once every two years. Cause: Controls are not in place to ensure that equipment listings and physical inventory records are maintained and updated in a timely manner. Effect: Failure to maintain equipment and inventory records does not allow for proper tracking of equipment purchased with federal funds which could lead to improper disposition of federally funded equipment. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that management update records for equipment acquired with federal funds according to compliance requirements referenced above and communicate these requirements to employees responsible for managing federal programs.