FAC Explorer

Audit 320006

FY End
2023-12-31
Total Expended
$1.11M
Findings
4
Programs
1
Organization: Elm Hill Water District (MA)
Year: 2023 Accepted: 2024-09-19
Auditor: Goulet Salvidio & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497324 2023-001 Significant Deficiency Yes P
497325 2023-002 Significant Deficiency Yes P
1073766 2023-001 Significant Deficiency Yes P
1073767 2023-002 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $1.11M Yes 2

Contacts

Name Title Type
SSCJH1B2XQ44 Susan Zammerelli Auditee
5087555448 Adam Schremser Auditor
No contacts on file

Notes to SEFA

Title: 1.       Basis of Presentation Accounting Policies: (a) The outstanding balance of loan and loan guarantee programs at December 31, 2023 with continuing compliance requirements which are reported as federal expenditures on the accompanying Schedule of Expenditures of Federal Awards was $1,105,263. De Minimis Rate Used: N Rate Explanation: No the auditee is only repaying a loan. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Elm Hill Water District under programs of the federal government for the year ended December 31, 2023. The information in this 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 Project, it is not intended to and does not present the District’s financial position, changes in net assets, or cash flows.
Title: 2.       Summary of Significant Accounting Policies Accounting Policies: (a) The outstanding balance of loan and loan guarantee programs at December 31, 2023 with continuing compliance requirements which are reported as federal expenditures on the accompanying Schedule of Expenditures of Federal Awards was $1,105,263. De Minimis Rate Used: N Rate Explanation: No the auditee is only repaying a loan. (a) The outstanding balance of loan and loan guarantee programs at December 31, 2023 with continuing compliance requirements which are reported as federal expenditures on the accompanying Schedule of Expenditures of Federal Awards was $1,105,263.

Finding Details

Finding 2023-001
Statement of Condition: Significant Deficiency - The District does not have sufficient staff base to properly segregate accounting functions. Criteria: Proper internal controls over accounting transactions would include the ability to segregate certain accounting functions in order to protect assets. Effect: The results of our tests revealed no questioned costs or material misstatements. Cause: The Treasurer records all financial transactions. Recommendation: Both Susan Zammarelli, Treasurer and Edward Guries, Superintendent should be involved in the daily financial affairs of the District to include monthly ledgers, financial statements, bank statements and bank reconciliations. Views of Responsible Officials and Corrective Action: The District will strive to segregate as many accounting functions as practical with the limited staff available.
Finding 2023-002
Statement of Condition: Significant Deficiency - The District does not have an internal control system designed to provide for the preparation of the financial statements and related financial statement disclosures. As auditors, we were requested to draft the financial statements and accompanying notes to the financial statements. Criteria: Proper internal controls over financial reporting would include the ability to prepare financial statements including footnote disclosures. Effect: Although this circumstance is not unusual for a District of this size, the preparation of financial statements as a part of the audit engagement may result in financial statements and related information included in financial statements disclosures not being available for management purposes as timely as it would be if prepared by District personnel. Cause: The personnel of the District do not possess the knowledge or tools to prepare financial statement footnotes and required schedules. Recommendation: The District should appoint a competent individual, such as Edward Guries, Superintendent who possesses the skill knowledge and experience to review and approve the draft reports and assume all relevant management responsibilities. Views of Responsible Officials and Corrective Action: The District will strive to gain necessary knowledge needed to prepare a full set of financial statements. The District will appoint a competent individual who possesses the skill knowledge and experience to review and approve the draft reports and assume all relevant management responsibilities.
Finding 2023-001
Statement of Condition: Significant Deficiency - The District does not have sufficient staff base to properly segregate accounting functions. Criteria: Proper internal controls over accounting transactions would include the ability to segregate certain accounting functions in order to protect assets. Effect: The results of our tests revealed no questioned costs or material misstatements. Cause: The Treasurer records all financial transactions. Recommendation: Both Susan Zammarelli, Treasurer and Edward Guries, Superintendent should be involved in the daily financial affairs of the District to include monthly ledgers, financial statements, bank statements and bank reconciliations. Views of Responsible Officials and Corrective Action: The District will strive to segregate as many accounting functions as practical with the limited staff available.
Finding 2023-002
Statement of Condition: Significant Deficiency - The District does not have an internal control system designed to provide for the preparation of the financial statements and related financial statement disclosures. As auditors, we were requested to draft the financial statements and accompanying notes to the financial statements. Criteria: Proper internal controls over financial reporting would include the ability to prepare financial statements including footnote disclosures. Effect: Although this circumstance is not unusual for a District of this size, the preparation of financial statements as a part of the audit engagement may result in financial statements and related information included in financial statements disclosures not being available for management purposes as timely as it would be if prepared by District personnel. Cause: The personnel of the District do not possess the knowledge or tools to prepare financial statement footnotes and required schedules. Recommendation: The District should appoint a competent individual, such as Edward Guries, Superintendent who possesses the skill knowledge and experience to review and approve the draft reports and assume all relevant management responsibilities. Views of Responsible Officials and Corrective Action: The District will strive to gain necessary knowledge needed to prepare a full set of financial statements. The District will appoint a competent individual who possesses the skill knowledge and experience to review and approve the draft reports and assume all relevant management responsibilities.