Audit 32959

FY End
2022-06-30
Total Expended
$2.42M
Findings
10
Programs
11
Organization: Town of North Reading (MA)
Year: 2022 Accepted: 2023-08-29
Auditor: Marcum LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
33619 2022-001 - Yes ABCEFHIN
33620 2022-001 - Yes ABCEFHIN
33621 2022-001 - Yes ABCEFHIN
33622 2022-001 - Yes ABCEFHIN
33623 2022-001 - Yes ABCEFHIN
610061 2022-001 - Yes ABCEFHIN
610062 2022-001 - Yes ABCEFHIN
610063 2022-001 - Yes ABCEFHIN
610064 2022-001 - Yes ABCEFHIN
610065 2022-001 - Yes ABCEFHIN

Programs

Contacts

Name Title Type
HV3HVME7KZX9 Laurianne Galvin Auditee
9783575222 Scott McIntire 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 federalaward activity of the Town of North Reading, Massachusetts (The Town) under programs of thefederal government for the year ended June 30, 2022. The information in the Schedule is presentedin 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 FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of theoperations of the Town, it is not intended to and does not present the financial position, changes innet 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.The amounts reported for the National School Lunch Program Non-Cash Assistance represent thefair value of commodities received. 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 4 - SUBRECIPIENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity of the Town of North Reading, Massachusetts (The Town) under programs of thefederal government for the year ended June 30, 2022. The information in the Schedule is presentedin 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 FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of theoperations of the Town, it is not intended to and does not present the financial position, changes innet 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.The amounts reported for the National School Lunch Program Non-Cash Assistance represent thefair value of commodities received. 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

2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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 Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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 Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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 Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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 Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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 Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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 Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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 Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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 Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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 Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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 Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.