FAC Explorer

Audit 315905

FY End
2022-06-30
Total Expended
$4.25M
Findings
10
Programs
12
Organization: Town of Bellingham, Massachusetts (MA)
Year: 2022 Accepted: 2024-07-25
Auditor: Robert E Brown II CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479407 2022-003 Significant Deficiency - AB
479408 2022-004 - - AB
479409 2022-001 Significant Deficiency - AB
479410 2022-002 Material Weakness Yes L
479411 2022-002 Material Weakness Yes L
1055849 2022-003 Significant Deficiency - AB
1055850 2022-004 - - AB
1055851 2022-001 Significant Deficiency - AB
1055852 2022-002 Material Weakness Yes L
1055853 2022-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $256,505 - 0
10.553 School Breakfast Program $218,680 Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $212,518 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $206,444 Yes 1
10.555 National School Lunch Program $46,491 Yes 0
84.027 Special Education_grants to States $43,513 - 0
84.010 Title I Grants to Local Educational Agencies $43,184 - 0
84.367 Improving Teacher Quality State Grants $34,910 - 0
84.173 Special Education_preschool Grants $8,447 - 0
21.019 Coronavirus Relief Fund $3,684 - 0
84.424 Student Support and Academic Enrichment Program $480 - 0
84.425 Education Stabilization Fund $450 Yes 0

Contacts

Name Title Type
KLC4GNX9HX13 Heidi Chuckran Auditee
5089965805 Robert E. Brown II Auditor
No contacts on file

Notes to SEFA

Title: I. BASIS OF PRESENTATION Accounting Policies: I. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Town of Bellingham, 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 Bellingham, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Bellingham, Massachusetts. II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly expenditures are recognized when the liability is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. III. IN DIRECT COST RATE The Town of Bellingham, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. IV. SCHOOL LUNCH PROGRAM The School accounts for local, state and federal expenditures of the National School Lunch and School Breakfast programs in one combined fund. Program expenditures in the accompanying Schedule of Expenditures of Federal Awards represent federal reimbursements for meals provided during fiscal 2022. Contributions of noncash assistance commodities under the Food Distribution program are received under a State distribution formula and are valued at federally published wholesale prices for purposes of this schedule. V. SUBRECIPIENTS The Town of Bellingham, Massachusetts passed no federal awards through to sub-recipients during the period under audit. VI. DISASTER GRANTS Disaster Grants have been recorded in the year the grant was approved, except for grant expenditures related to the Coronavirus Pandemic. De Minimis Rate Used: N Rate Explanation: The auditee choose not to use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Town of Bellingham, 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 Bellingham, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Bellingham, Massachusetts.
Title: II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: I. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Town of Bellingham, 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 Bellingham, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Bellingham, Massachusetts. II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly expenditures are recognized when the liability is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. III. IN DIRECT COST RATE The Town of Bellingham, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. IV. SCHOOL LUNCH PROGRAM The School accounts for local, state and federal expenditures of the National School Lunch and School Breakfast programs in one combined fund. Program expenditures in the accompanying Schedule of Expenditures of Federal Awards represent federal reimbursements for meals provided during fiscal 2022. Contributions of noncash assistance commodities under the Food Distribution program are received under a State distribution formula and are valued at federally published wholesale prices for purposes of this schedule. V. SUBRECIPIENTS The Town of Bellingham, Massachusetts passed no federal awards through to sub-recipients during the period under audit. VI. DISASTER GRANTS Disaster Grants have been recorded in the year the grant was approved, except for grant expenditures related to the Coronavirus Pandemic. De Minimis Rate Used: N Rate Explanation: The auditee choose not to use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly expenditures are recognized when the liability is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: III. IN DIRECT COST RATE Accounting Policies: I. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Town of Bellingham, 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 Bellingham, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Bellingham, Massachusetts. II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly expenditures are recognized when the liability is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. III. IN DIRECT COST RATE The Town of Bellingham, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. IV. SCHOOL LUNCH PROGRAM The School accounts for local, state and federal expenditures of the National School Lunch and School Breakfast programs in one combined fund. Program expenditures in the accompanying Schedule of Expenditures of Federal Awards represent federal reimbursements for meals provided during fiscal 2022. Contributions of noncash assistance commodities under the Food Distribution program are received under a State distribution formula and are valued at federally published wholesale prices for purposes of this schedule. V. SUBRECIPIENTS The Town of Bellingham, Massachusetts passed no federal awards through to sub-recipients during the period under audit. VI. DISASTER GRANTS Disaster Grants have been recorded in the year the grant was approved, except for grant expenditures related to the Coronavirus Pandemic. De Minimis Rate Used: N Rate Explanation: The auditee choose not to use the de minimis cost rate. The Town of Bellingham, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance.
Title: IV. SCHOOL LUNCH PROGRAM Accounting Policies: I. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Town of Bellingham, 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 Bellingham, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Bellingham, Massachusetts. II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly expenditures are recognized when the liability is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. III. IN DIRECT COST RATE The Town of Bellingham, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. IV. SCHOOL LUNCH PROGRAM The School accounts for local, state and federal expenditures of the National School Lunch and School Breakfast programs in one combined fund. Program expenditures in the accompanying Schedule of Expenditures of Federal Awards represent federal reimbursements for meals provided during fiscal 2022. Contributions of noncash assistance commodities under the Food Distribution program are received under a State distribution formula and are valued at federally published wholesale prices for purposes of this schedule. V. SUBRECIPIENTS The Town of Bellingham, Massachusetts passed no federal awards through to sub-recipients during the period under audit. VI. DISASTER GRANTS Disaster Grants have been recorded in the year the grant was approved, except for grant expenditures related to the Coronavirus Pandemic. De Minimis Rate Used: N Rate Explanation: The auditee choose not to use the de minimis cost rate. The School accounts for local, state and federal expenditures of the National School Lunch and School Breakfast programs in one combined fund. Program expenditures in the accompanying Schedule of Expenditures of Federal Awards represent federal reimbursements for meals provided during fiscal 2022. Contributions of noncash assistance commodities under the Food Distribution program are received under a State distribution formula and are valued at federally published wholesale prices for purposes of this schedule.
Title: V. SUBRECIPIENTS Accounting Policies: I. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Town of Bellingham, 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 Bellingham, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Bellingham, Massachusetts. II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly expenditures are recognized when the liability is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. III. IN DIRECT COST RATE The Town of Bellingham, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. IV. SCHOOL LUNCH PROGRAM The School accounts for local, state and federal expenditures of the National School Lunch and School Breakfast programs in one combined fund. Program expenditures in the accompanying Schedule of Expenditures of Federal Awards represent federal reimbursements for meals provided during fiscal 2022. Contributions of noncash assistance commodities under the Food Distribution program are received under a State distribution formula and are valued at federally published wholesale prices for purposes of this schedule. V. SUBRECIPIENTS The Town of Bellingham, Massachusetts passed no federal awards through to sub-recipients during the period under audit. VI. DISASTER GRANTS Disaster Grants have been recorded in the year the grant was approved, except for grant expenditures related to the Coronavirus Pandemic. De Minimis Rate Used: N Rate Explanation: The auditee choose not to use the de minimis cost rate. The Town of Bellingham, Massachusetts passed no federal awards through to sub-recipients during the period under audit.
Title: VI. DISASTER GRANTS Accounting Policies: I. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Town of Bellingham, 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 Bellingham, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Bellingham, Massachusetts. II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly expenditures are recognized when the liability is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. III. IN DIRECT COST RATE The Town of Bellingham, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. IV. SCHOOL LUNCH PROGRAM The School accounts for local, state and federal expenditures of the National School Lunch and School Breakfast programs in one combined fund. Program expenditures in the accompanying Schedule of Expenditures of Federal Awards represent federal reimbursements for meals provided during fiscal 2022. Contributions of noncash assistance commodities under the Food Distribution program are received under a State distribution formula and are valued at federally published wholesale prices for purposes of this schedule. V. SUBRECIPIENTS The Town of Bellingham, Massachusetts passed no federal awards through to sub-recipients during the period under audit. VI. DISASTER GRANTS Disaster Grants have been recorded in the year the grant was approved, except for grant expenditures related to the Coronavirus Pandemic. De Minimis Rate Used: N Rate Explanation: The auditee choose not to use the de minimis cost rate. Disaster Grants have been recorded in the year the grant was approved, except for grant expenditures related to the Coronavirus Pandemic.

Finding Details

Finding 2022-003
Finding 2022-003 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Significant Deficiency Related to Internal Control over Compliance of the Major Programs Condition: During our test of controls over compliance it was noted that payroll for an English Language Learning Teacher was charged to the Education Stabilization ESSER II major program grant, however was not included as part of the original or amended grant applications. Criteria: Costs charged to the Education Stabilization ESSER II major program should meet the requirements as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Context: During our review of payroll transactions posted to the Education Stabilization ESSER II major program it was noted that an English Language Learning Teacher was charged to the Education Stabilization ESSER II major program grant and was not included as part of the original or amended grant applications. Effect: Town of Bellingham was not in compliance with the allowable costs/ cost principals requirement as set forth by the Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Questioned Costs: Could not be determined. Cause: Amendments to the grant were not posted at the time of the change. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Bellingham follow procedures to ensure that expenditures charged to the grants are allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles) Managements Response: Management will ensure that all amendments are processed at the time of occurrence.
Finding 2022-004
Finding 2022-004 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Other Matters Related to Internal Control over Compliance of the Major Programs Criteria: Where employees work solely or partially on a single Federal program or cost objective, their salaries or wages must be supported by periodic certification that the employee worked on these programs for the period covered by the programs. The certifications should be prepared at least semi-annually, and should be signed by the employee or supervisory official having first-hand knowledge of the work performed by the employee. Condition: During our test of controls over compliance with time and effort certifications the Town was not able to provide evidence that the required certifications of time and effort for one of the employees whose time was spent either completely or partially spent on these programs was performed as required by Uniform Guidance. Questioned Costs: Unknown Context: During our test of payroll transactions of the Education Stabilization ESSER II grant it was noted that the time and effort certification for one of the employees tested was not completed. Effect: The Town was not in compliance with the time and effort certification requirements. Cause: Time and Effort Certifications were issued semi-annually to all staff paid by federal grants. In some instances, staff were on leave or resigned and were not available for signature. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Bellingham follow procedures to ensure that semi-annual certifications and/or monthly certifications are prepared and signed by either the employees and/or supervisory official having first-hand knowledge of the work performed by the employees in a timely manner in order to comply with the time and effort certification requirement. Management Response: Management is developing improved processes to ensure that all work is acknowledged at the time of completion by the employee. Documentation will be maintained by the school Business Manager.
Finding 2022-001
Finding 2022-001 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Significant Deficiency Related to Internal Control over Compliance of the Major Programs Criteria: Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context: Control deficiencies related to disbursements were noted as a result of the testing of internal controls over payroll. Specifically, a sample of payroll disbursements charged to the Accelerated Literacy Learning Grant were tested in order to determine if adequate internal controls were in place. As a result of the testing of payroll disbursements charged to the programs, employees tested were found to not have adequately approved and or documented employee payroll rate agreements. Cause: The School Department failed to produce copies of documented appointment letters to support pay rates from the appropriate level of management. Effect or Potential Effect: Due to the weaknesses in internal controls noted above, there is a risk of inappropriate rate of pay and/or wages being paid. Identification as a Repeat Finding: N/A Questioned Costs: Questioned costs could not be determined. Recommendation: The Town should improve internal controls over Activities Allowed/Allowable Costs by ensuring employee’s payroll rate agreements are approved by an appropriate level of management and in a timely manner. Managements Response: School management will ensure that documented appointment letters from management will support payments.
Finding 2022-002
Finding 2022-002 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Norfolk County Noncompliance and Material Weakness in Internal Control over Compliance of the Major Programs Condition: Upon review of the Town of Bellingham’s report filed with the U.S. Department of Treasury and Norfolk County it was noted that the reports did not agree with the Town’s accounting ledgers. Criteria: Per the U.S. Department of Treasury the Town was required to submit an accurate annual Recovery Plan Performance Report. Additionally, the Town was required to submit quarterly performance reports to Norfolk County. Context: The annual report submitted to the U.S. Department of Treasury indicated that the Town had no expenditures which was incorrect. The quarterly report submitted to Norfolk County for the time period of April 1, 2022 through June 30, 2022 did not agree to the accounting ledgers. Effect: The Town of Bellingham was not in compliance with the U.S. Department of Treasury and Norfolk County reporting requirements. Questioned Costs: N/A Cause: During this time period, the Grant Administrator compiled manually created records to support the reporting requirement. Those manual records were not properly reconciled with the General Ledger reports prior to submission to the required agencies. Identification as a Repeat Finding: Yes, 2021-002 Recommendation: The Town of Bellingham should complete and submit all required quarterly reporting by the due date designated by either the Federal Agency or pass through entity and ensure that it agrees with grant activity for time period reported. Managements Response: The Town has trained the Grants Administrator on procedures to reconcile General Ledger reports with manually created project-based records. The Town is also implementing a procedure whereby the CFO signs each required report before submitting.
Finding 2022-002
Finding 2022-002 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Norfolk County Noncompliance and Material Weakness in Internal Control over Compliance of the Major Programs Condition: Upon review of the Town of Bellingham’s report filed with the U.S. Department of Treasury and Norfolk County it was noted that the reports did not agree with the Town’s accounting ledgers. Criteria: Per the U.S. Department of Treasury the Town was required to submit an accurate annual Recovery Plan Performance Report. Additionally, the Town was required to submit quarterly performance reports to Norfolk County. Context: The annual report submitted to the U.S. Department of Treasury indicated that the Town had no expenditures which was incorrect. The quarterly report submitted to Norfolk County for the time period of April 1, 2022 through June 30, 2022 did not agree to the accounting ledgers. Effect: The Town of Bellingham was not in compliance with the U.S. Department of Treasury and Norfolk County reporting requirements. Questioned Costs: N/A Cause: During this time period, the Grant Administrator compiled manually created records to support the reporting requirement. Those manual records were not properly reconciled with the General Ledger reports prior to submission to the required agencies. Identification as a Repeat Finding: Yes, 2021-002 Recommendation: The Town of Bellingham should complete and submit all required quarterly reporting by the due date designated by either the Federal Agency or pass through entity and ensure that it agrees with grant activity for time period reported. Managements Response: The Town has trained the Grants Administrator on procedures to reconcile General Ledger reports with manually created project-based records. The Town is also implementing a procedure whereby the CFO signs each required report before submitting.
Finding 2022-003
Finding 2022-003 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Significant Deficiency Related to Internal Control over Compliance of the Major Programs Condition: During our test of controls over compliance it was noted that payroll for an English Language Learning Teacher was charged to the Education Stabilization ESSER II major program grant, however was not included as part of the original or amended grant applications. Criteria: Costs charged to the Education Stabilization ESSER II major program should meet the requirements as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Context: During our review of payroll transactions posted to the Education Stabilization ESSER II major program it was noted that an English Language Learning Teacher was charged to the Education Stabilization ESSER II major program grant and was not included as part of the original or amended grant applications. Effect: Town of Bellingham was not in compliance with the allowable costs/ cost principals requirement as set forth by the Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Questioned Costs: Could not be determined. Cause: Amendments to the grant were not posted at the time of the change. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Bellingham follow procedures to ensure that expenditures charged to the grants are allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles) Managements Response: Management will ensure that all amendments are processed at the time of occurrence.
Finding 2022-004
Finding 2022-004 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Other Matters Related to Internal Control over Compliance of the Major Programs Criteria: Where employees work solely or partially on a single Federal program or cost objective, their salaries or wages must be supported by periodic certification that the employee worked on these programs for the period covered by the programs. The certifications should be prepared at least semi-annually, and should be signed by the employee or supervisory official having first-hand knowledge of the work performed by the employee. Condition: During our test of controls over compliance with time and effort certifications the Town was not able to provide evidence that the required certifications of time and effort for one of the employees whose time was spent either completely or partially spent on these programs was performed as required by Uniform Guidance. Questioned Costs: Unknown Context: During our test of payroll transactions of the Education Stabilization ESSER II grant it was noted that the time and effort certification for one of the employees tested was not completed. Effect: The Town was not in compliance with the time and effort certification requirements. Cause: Time and Effort Certifications were issued semi-annually to all staff paid by federal grants. In some instances, staff were on leave or resigned and were not available for signature. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Bellingham follow procedures to ensure that semi-annual certifications and/or monthly certifications are prepared and signed by either the employees and/or supervisory official having first-hand knowledge of the work performed by the employees in a timely manner in order to comply with the time and effort certification requirement. Management Response: Management is developing improved processes to ensure that all work is acknowledged at the time of completion by the employee. Documentation will be maintained by the school Business Manager.
Finding 2022-001
Finding 2022-001 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Significant Deficiency Related to Internal Control over Compliance of the Major Programs Criteria: Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context: Control deficiencies related to disbursements were noted as a result of the testing of internal controls over payroll. Specifically, a sample of payroll disbursements charged to the Accelerated Literacy Learning Grant were tested in order to determine if adequate internal controls were in place. As a result of the testing of payroll disbursements charged to the programs, employees tested were found to not have adequately approved and or documented employee payroll rate agreements. Cause: The School Department failed to produce copies of documented appointment letters to support pay rates from the appropriate level of management. Effect or Potential Effect: Due to the weaknesses in internal controls noted above, there is a risk of inappropriate rate of pay and/or wages being paid. Identification as a Repeat Finding: N/A Questioned Costs: Questioned costs could not be determined. Recommendation: The Town should improve internal controls over Activities Allowed/Allowable Costs by ensuring employee’s payroll rate agreements are approved by an appropriate level of management and in a timely manner. Managements Response: School management will ensure that documented appointment letters from management will support payments.
Finding 2022-002
Finding 2022-002 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Norfolk County Noncompliance and Material Weakness in Internal Control over Compliance of the Major Programs Condition: Upon review of the Town of Bellingham’s report filed with the U.S. Department of Treasury and Norfolk County it was noted that the reports did not agree with the Town’s accounting ledgers. Criteria: Per the U.S. Department of Treasury the Town was required to submit an accurate annual Recovery Plan Performance Report. Additionally, the Town was required to submit quarterly performance reports to Norfolk County. Context: The annual report submitted to the U.S. Department of Treasury indicated that the Town had no expenditures which was incorrect. The quarterly report submitted to Norfolk County for the time period of April 1, 2022 through June 30, 2022 did not agree to the accounting ledgers. Effect: The Town of Bellingham was not in compliance with the U.S. Department of Treasury and Norfolk County reporting requirements. Questioned Costs: N/A Cause: During this time period, the Grant Administrator compiled manually created records to support the reporting requirement. Those manual records were not properly reconciled with the General Ledger reports prior to submission to the required agencies. Identification as a Repeat Finding: Yes, 2021-002 Recommendation: The Town of Bellingham should complete and submit all required quarterly reporting by the due date designated by either the Federal Agency or pass through entity and ensure that it agrees with grant activity for time period reported. Managements Response: The Town has trained the Grants Administrator on procedures to reconcile General Ledger reports with manually created project-based records. The Town is also implementing a procedure whereby the CFO signs each required report before submitting.
Finding 2022-002
Finding 2022-002 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Norfolk County Noncompliance and Material Weakness in Internal Control over Compliance of the Major Programs Condition: Upon review of the Town of Bellingham’s report filed with the U.S. Department of Treasury and Norfolk County it was noted that the reports did not agree with the Town’s accounting ledgers. Criteria: Per the U.S. Department of Treasury the Town was required to submit an accurate annual Recovery Plan Performance Report. Additionally, the Town was required to submit quarterly performance reports to Norfolk County. Context: The annual report submitted to the U.S. Department of Treasury indicated that the Town had no expenditures which was incorrect. The quarterly report submitted to Norfolk County for the time period of April 1, 2022 through June 30, 2022 did not agree to the accounting ledgers. Effect: The Town of Bellingham was not in compliance with the U.S. Department of Treasury and Norfolk County reporting requirements. Questioned Costs: N/A Cause: During this time period, the Grant Administrator compiled manually created records to support the reporting requirement. Those manual records were not properly reconciled with the General Ledger reports prior to submission to the required agencies. Identification as a Repeat Finding: Yes, 2021-002 Recommendation: The Town of Bellingham should complete and submit all required quarterly reporting by the due date designated by either the Federal Agency or pass through entity and ensure that it agrees with grant activity for time period reported. Managements Response: The Town has trained the Grants Administrator on procedures to reconcile General Ledger reports with manually created project-based records. The Town is also implementing a procedure whereby the CFO signs each required report before submitting.