FAC Explorer

Audit 317084

FY End
2022-06-30
Total Expended
$964,969
Findings
2
Programs
9
Organization: Town of Southampton (MA)
Year: 2022 Accepted: 2024-08-12
Auditor: Marcum LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480963 2022-002 Material Weakness - L
1057405 2022-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $335,363 Yes 1
21.019 Coronavirus Relief Fund $102,506 - 0
84.425 Education Stabilization Fund $74,287 - 0
84.358 Rural Education $46,378 - 0
84.027 Special Education_grants to States $34,683 - 0
84.010 Title I Grants to Local Educational Agencies $19,794 - 0
10.553 School Breakfast Program $15,983 Yes 0
10.555 National School Lunch Program $13,986 Yes 0
84.424 Student Support and Academic Enrichment Program $10,461 - 0

Contacts

Name Title Type
QFVJZK9CS3L1 Scott Szczebak Auditee
4135290106 Tanya Campbell Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: See note 2 De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Town of Southampton, 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 Fe0deral 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.
Title: Note 2 – Summary of Significant Accounting Policies Accounting Policies: See note 2 De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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. The amounts reported for the National School Lunch Program – Non-Cash Assistance represent the fair value of commodities received.
Title: Note 3 – De Minimis Cost Rate Accounting Policies: See note 2 De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Town has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4 - Donated Personal Protective Equipment (PPE) (Unaudited) Accounting Policies: See note 2 De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. During fiscal year 2022 the Town did not receive donated PPE from federal sources.

Finding Details

Finding 2022-002
2022-002 Improve Oversight of Reporting Over Federal Awards (Material Weakness) Federal Agency: Department of Treasury Cluster/Program: Coronavirus State and Local Fiscal Recovery Fund AL Number: 21.027 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Town is required under American Rescue Plan Act (ARPA) guidelines to submit an annual project and expenditure report by April 30 each year. This reporting should include current period obligations, cumulative obligations, current period expenditures, and cumulative expenditures for each approved ARPA project. 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 The Town did not submit an annual report to the Department of Treasury by April 30, 2022. Cause The Town has not established adequate procedures to ensure that reporting requirements are adhered to. Effect or Potential Effect Non-compliance with ARPA reporting requirements can result in loss of funding and adminis¬trative burdens due to audit findings. Questioned Costs There are no known questioned costs.
Finding 2022-002
2022-002 Improve Oversight of Reporting Over Federal Awards (Material Weakness) Federal Agency: Department of Treasury Cluster/Program: Coronavirus State and Local Fiscal Recovery Fund AL Number: 21.027 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Town is required under American Rescue Plan Act (ARPA) guidelines to submit an annual project and expenditure report by April 30 each year. This reporting should include current period obligations, cumulative obligations, current period expenditures, and cumulative expenditures for each approved ARPA project. 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 The Town did not submit an annual report to the Department of Treasury by April 30, 2022. Cause The Town has not established adequate procedures to ensure that reporting requirements are adhered to. Effect or Potential Effect Non-compliance with ARPA reporting requirements can result in loss of funding and adminis¬trative burdens due to audit findings. Questioned Costs There are no known questioned costs.