FAC Explorer

Audit 356376

FY End
2023-06-30
Total Expended
$1.20M
Findings
6
Programs
8
Organization: Town of Sturbridge, Massachusetts (MA)
Year: 2023 Accepted: 2025-05-15
Auditor: Robert E Brown II CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560486 2023-002 Material Weakness - AB
560487 2023-001 Significant Deficiency - AB
560488 2023-002 Material Weakness - AB
1136928 2023-002 Material Weakness - AB
1136929 2023-001 Significant Deficiency - AB
1136930 2023-002 Material Weakness - AB

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $295,165 Yes 0
84.425 Education Stabilization Fund $243,644 Yes 2
20.205 Highway Planning and Construction $208,259 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $106,139 - 0
10.553 School Breakfast Program $80,756 - 0
10.555 National School Lunch Program $24,596 - 0
16.607 Bulletproof Vest Partnership Program $2,316 - 0
20.600 State and Community Highway Safety $415 - 0

Contacts

Name Title Type
MA7TXL3VN4R1 Barbara Barry Auditee
5083472509 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 Sturbridge, Massachusetts under programs of the federal government for the year ended June 30, 2023. 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 Sturbridge, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Sturbridge, 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 Sturbridge, 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 2023. 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 Sturbridge, 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 Sturbridge, Massachusetts under programs of the federal government for the year ended June 30, 2023. 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 Sturbridge, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Sturbridge, 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 Sturbridge, Massachusetts under programs of the federal government for the year ended June 30, 2023. 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 Sturbridge, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Sturbridge, 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 Sturbridge, 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 2023. 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 Sturbridge, 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 Sturbridge, Massachusetts under programs of the federal government for the year ended June 30, 2023. 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 Sturbridge, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Sturbridge, 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 Sturbridge, 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 2023. 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 Sturbridge, 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 Sturbridge, 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 Sturbridge, Massachusetts under programs of the federal government for the year ended June 30, 2023. 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 Sturbridge, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Sturbridge, 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 Sturbridge, 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 2023. 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 Sturbridge, 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 2023. 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 Sturbridge, Massachusetts under programs of the federal government for the year ended June 30, 2023. 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 Sturbridge, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Sturbridge, 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 Sturbridge, 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 2023. 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 Sturbridge, 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 Sturbridge, 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 Sturbridge, Massachusetts under programs of the federal government for the year ended June 30, 2023. 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 Sturbridge, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Sturbridge, 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 Sturbridge, 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 2023. 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 Sturbridge, 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 2023-002
Department of Education Finding 2023-002 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program 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 school department provided time and effort certifications that did not agree to the payroll records, and were not dated at the time of approval. Questioned Costs: Unknown Context: During our test of payroll transactions of the ESSER II and ESSER III grants it was noted that the time and effort certifications did not agree to the payroll records and were not dated. Effect: The Town of Sturbridge was not in compliance with the time and effort certification requirements. Cause: Due to staffing changes, time and effort documents were not completed in a timely manner. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Sturbridge follow procedures to ensure that semi-annual certifications and/or monthly certifications are prepared and agree with the payroll records, 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: Moving forward the school department bookkeepers will work to ensure time and effort certifications are completed in a timely fashion.
Finding 2023-001
Department of Education Finding 2023-001 – 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 Program Condition: During our test of controls over compliance it was noted that an employee’s payroll charged to the Education Stabilization Fund – ESSER III major program was for services that was not included as part of the grant application/budget. Criteria: Costs charged to the 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 the payroll charged to the major program it was noted that one of the employees charged to the grant was for stipend pay for work as a ELL Coordinator that was charged to the Salaries budget of the grant, which does not support the services charged. Thus the payroll expense would be unallowable. Effect: Town of Sturbridge 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: $862.50 Cause: The stipend for the ELL Coordinator was considered salary by the school department. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Sturbridge follow procedures to ensure that payroll expenditures charged to the grant is allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles) Managements Response: Moving forward the school department bookkeepers will work to ensure expenditures are properly established, funded and within allowable cost guidelines.
Finding 2023-002
Department of Education Finding 2023-002 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program 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 school department provided time and effort certifications that did not agree to the payroll records, and were not dated at the time of approval. Questioned Costs: Unknown Context: During our test of payroll transactions of the ESSER II and ESSER III grants it was noted that the time and effort certifications did not agree to the payroll records and were not dated. Effect: The Town of Sturbridge was not in compliance with the time and effort certification requirements. Cause: Due to staffing changes, time and effort documents were not completed in a timely manner. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Sturbridge follow procedures to ensure that semi-annual certifications and/or monthly certifications are prepared and agree with the payroll records, 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: Moving forward the school department bookkeepers will work to ensure time and effort certifications are completed in a timely fashion.
Finding 2023-002
Department of Education Finding 2023-002 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program 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 school department provided time and effort certifications that did not agree to the payroll records, and were not dated at the time of approval. Questioned Costs: Unknown Context: During our test of payroll transactions of the ESSER II and ESSER III grants it was noted that the time and effort certifications did not agree to the payroll records and were not dated. Effect: The Town of Sturbridge was not in compliance with the time and effort certification requirements. Cause: Due to staffing changes, time and effort documents were not completed in a timely manner. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Sturbridge follow procedures to ensure that semi-annual certifications and/or monthly certifications are prepared and agree with the payroll records, 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: Moving forward the school department bookkeepers will work to ensure time and effort certifications are completed in a timely fashion.
Finding 2023-001
Department of Education Finding 2023-001 – 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 Program Condition: During our test of controls over compliance it was noted that an employee’s payroll charged to the Education Stabilization Fund – ESSER III major program was for services that was not included as part of the grant application/budget. Criteria: Costs charged to the 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 the payroll charged to the major program it was noted that one of the employees charged to the grant was for stipend pay for work as a ELL Coordinator that was charged to the Salaries budget of the grant, which does not support the services charged. Thus the payroll expense would be unallowable. Effect: Town of Sturbridge 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: $862.50 Cause: The stipend for the ELL Coordinator was considered salary by the school department. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Sturbridge follow procedures to ensure that payroll expenditures charged to the grant is allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles) Managements Response: Moving forward the school department bookkeepers will work to ensure expenditures are properly established, funded and within allowable cost guidelines.
Finding 2023-002
Department of Education Finding 2023-002 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program 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 school department provided time and effort certifications that did not agree to the payroll records, and were not dated at the time of approval. Questioned Costs: Unknown Context: During our test of payroll transactions of the ESSER II and ESSER III grants it was noted that the time and effort certifications did not agree to the payroll records and were not dated. Effect: The Town of Sturbridge was not in compliance with the time and effort certification requirements. Cause: Due to staffing changes, time and effort documents were not completed in a timely manner. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Sturbridge follow procedures to ensure that semi-annual certifications and/or monthly certifications are prepared and agree with the payroll records, 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: Moving forward the school department bookkeepers will work to ensure time and effort certifications are completed in a timely fashion.