FAC Explorer

Audit 313217

FY End
2022-06-30
Total Expended
$1.21M
Findings
2
Programs
6
Organization: Town of Rutland, Massachusetts (MA)
Year: 2022 Accepted: 2023-09-18
Auditor: Marcum LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
447682 2022-001 Significant Deficiency - AN
1024124 2022-001 Significant Deficiency - AN

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $999,462 Yes 1
97.083 Staffing for Adequate Fire and Emergency Response (safer) $144,718 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $57,918 - 0
21.019 Coronavirus Relief Fund $9,039 - 0
97.042 Emergency Management Performance Grants $2,900 - 0
16.607 Bulletproof Vest Partnership Program $959 - 0

Contacts

Name Title Type
G6HMH4VJB6Q3 Donna Couture Auditee
5088864103 Tanya Campbell Auditor
No contacts on file

Notes to SEFA

Title: Note 3. Donated Personal Protective Equipment (PPE) (Unaudited) Accounting Policies: ?The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Town of Rutland, Massachusetts (the Town) under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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, it is not intended to and does not present the financial position, changes in net position or cash flows of the Town.?Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. ?Expenditures awarded from the Federal Emergency Management Agency (FEMA), must be presented on the Schedule when; 1) FEMA has approved the Towns project worksheet (PW) and 2) the Town has incurred the eligible expenditures. The $57,918 reported for Disaster Grants Public Assistance (Publicly Declared Disasters), AL 97.036, represents expenditures incurred in prior years that were approved by FEMA during fiscal year 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During fiscal year 2022 the Town did not receive donated PPE from federal sources.
Title: Note 5. Subrecipients Accounting Policies: ?The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Town of Rutland, Massachusetts (the Town) under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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, it is not intended to and does not present the financial position, changes in net position or cash flows of the Town.?Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. ?Expenditures awarded from the Federal Emergency Management Agency (FEMA), must be presented on the Schedule when; 1) FEMA has approved the Towns project worksheet (PW) and 2) the Town has incurred the eligible expenditures. The $57,918 reported for Disaster Grants Public Assistance (Publicly Declared Disasters), AL 97.036, represents expenditures incurred in prior years that were approved by FEMA during fiscal year 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Of the federal expenditures presented in the Schedule, the Town did not provide federal awards to subrecipients.

Finding Details

Finding 2022-001
2022-001 Document Policies and Procedures Over Federal AwardsFederal Program(s) InformationCluster/Program: All federal programsType of FindingCompliance ? Other MattersCriteria or Specific RequirementOMB?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (UG) established significant requirements related to federal awards. Therequirements stipulate that federal award recipients must document their policies and proceduresover certain aspects of financial program management. Specifically, written policies are requiredfor the following compliance requirements:? Cash management? Determination of allowable costs? Program income? Eligibility determination? Equipment and real property management? Period of performance? Procurement? Subrecipient monitoring and managementCondition and ContextThe Town does not have written policies and procedures related to federal awards, as requiredunder the Uniform Guidance. Specifically, there are no formalized written policies for cashmanagement, allowable costs, program income/requesting reimbursement, eligibility determination,equipment and real property management, period of performance, procurement, orsubrecipient monitoring.CauseWeaknesses in the design of internal controls.11Effect or Potential EffectThe Town is not in compliance with the Uniform Guidance requirements for written policies andprocedures.Questioned CostsThere are no questioned costs as a result of this finding, as there are no costs directly associatedwith this compliance requirement and this is a procedural requirement under the UniformGuidance.Identification as Repeat FindingAs identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-001.RecommendationThe Town should develop and implement written policies and procedures that are in compliancewith the requirements of the Uniform Guidance.Views of Responsible OfficialManagement agrees agree with the finding.Planned Corrective ActionManagement?s corrective action plan is included at the end of this report after the Schedule ofPrior-Year Audit Findings.
Finding 2022-001
2022-001 Document Policies and Procedures Over Federal AwardsFederal Program(s) InformationCluster/Program: All federal programsType of FindingCompliance ? Other MattersCriteria or Specific RequirementOMB?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (UG) established significant requirements related to federal awards. Therequirements stipulate that federal award recipients must document their policies and proceduresover certain aspects of financial program management. Specifically, written policies are requiredfor the following compliance requirements:? Cash management? Determination of allowable costs? Program income? Eligibility determination? Equipment and real property management? Period of performance? Procurement? Subrecipient monitoring and managementCondition and ContextThe Town does not have written policies and procedures related to federal awards, as requiredunder the Uniform Guidance. Specifically, there are no formalized written policies for cashmanagement, allowable costs, program income/requesting reimbursement, eligibility determination,equipment and real property management, period of performance, procurement, orsubrecipient monitoring.CauseWeaknesses in the design of internal controls.11Effect or Potential EffectThe Town is not in compliance with the Uniform Guidance requirements for written policies andprocedures.Questioned CostsThere are no questioned costs as a result of this finding, as there are no costs directly associatedwith this compliance requirement and this is a procedural requirement under the UniformGuidance.Identification as Repeat FindingAs identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-001.RecommendationThe Town should develop and implement written policies and procedures that are in compliancewith the requirements of the Uniform Guidance.Views of Responsible OfficialManagement agrees agree with the finding.Planned Corrective ActionManagement?s corrective action plan is included at the end of this report after the Schedule ofPrior-Year Audit Findings.