FAC Explorer

Audit 323932

FY End
2023-12-31
Total Expended
$2.37M
Findings
4
Programs
10
Organization: Town of Salem (NH)
Year: 2023 Accepted: 2024-10-07
Auditor: Marcum LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501830 2023-002 Significant Deficiency - ABCEFGHIJLMN
501831 2023-003 Significant Deficiency - L
1078272 2023-002 Significant Deficiency - ABCEFGHIJLMN
1078273 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.14M Yes 2
20.205 Highway Planning and Construction $1.05M - 0
97.067 Homeland Security Grant Program $42,913 - 0
16.922 Equitable Sharing Program $40,129 - 0
16.588 Violence Against Women Formula Grants $30,000 - 0
20.600 State and Community Highway Safety $20,781 - 0
16.710 Public Safety Partnership and Community Policing Grants $17,608 - 0
21.019 Coronavirus Relief Fund $17,011 - 0
95.001 High Intensity Drug Trafficking Areas Program $7,808 - 0
66.468 Drinking Water State Revolving Fund $3,629 - 0

Contacts

Name Title Type
MQBHSJXLBYW7 Nicole McGee Auditee
6038902000 Scott McIntire Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the 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. 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 Salem, New Hampshire (the Town) under programs of the federal government for the year ended December 31, 2023. 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.

Finding Details

Finding 2023-002
Document Policies and Procedures Over Federal Awards Cluster/Program: All federal programs Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to federal Awards. The new requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town’s written policies and procedures related to federal awards required under Uniform Guidance do not include various required policies such as period of performance, procurement, and reporting. Cause Weaknesses in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
Finding 2023-003
Improve Controls over Reporting Federal Agency: U.S. Department of the Treasury Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Award Year: 2023 Type of Finding Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Management of the Town is responsible for establishing and maintaining effective internal con-trol 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 per-forming 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 Reports required to be submitted to grantors do not have a separate preparer and reviewer. Cause Weaknesses in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with the finding. Recommendation The Town should implement formal policies and procedures regarding separation of duties and the requirement of a second individual being involved in the reporting process. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
Finding 2023-002
Document Policies and Procedures Over Federal Awards Cluster/Program: All federal programs Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to federal Awards. The new requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town’s written policies and procedures related to federal awards required under Uniform Guidance do not include various required policies such as period of performance, procurement, and reporting. Cause Weaknesses in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
Finding 2023-003
Improve Controls over Reporting Federal Agency: U.S. Department of the Treasury Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Award Year: 2023 Type of Finding Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Management of the Town is responsible for establishing and maintaining effective internal con-trol 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 per-forming 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 Reports required to be submitted to grantors do not have a separate preparer and reviewer. Cause Weaknesses in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with the finding. Recommendation The Town should implement formal policies and procedures regarding separation of duties and the requirement of a second individual being involved in the reporting process. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.