FAC Explorer

Audit 356423

FY End
2024-06-30
Total Expended
$4.34M
Findings
6
Programs
5
Organization: Town of Townsend (MA)
Year: 2024 Accepted: 2025-05-16
Auditor: Roselli Clark and Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560526 2024-001 Significant Deficiency - P
560527 2024-001 Significant Deficiency - P
560528 2024-002 Significant Deficiency - L
1136968 2024-001 Significant Deficiency - P
1136969 2024-001 Significant Deficiency - P
1136970 2024-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
66.468 Drinking Water State Revolving Fund $3.28M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.05M Yes 2
16.710 Public Safety Partnership and Community Policing Grants $4,350 - 0
97.042 Emergency Management Performance Grants $2,697 - 0
20.600 State and Community Highway Safety $2,658 - 0

Contacts

Name Title Type
C17PZLDL8VU5 Nelson Mui Auditee
9785971700 Paul Gargano Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. The accompanying Schedule includes the federal grant transactions of the Town. Although some of these programs may be supplemented with state and other revenue, only federal activity is shown. 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. De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Townsend, Massachusetts (the Town) under programs of the federal government for the year ended June 30, 2024. 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, 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 2024-001
2024-001 U.S. Department of Treasury & U.S. Environmental Protection Agency Passed through the Commonwealth of Massachusetts – Massachusetts Clean Water Trust COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Capitalization Grants for Drinking Water State Revolving Fund – ALN 66.468 Significant Deficiency in Internal Controls Over Compliance and Other Matter Criteria: The Uniform Guidance requires written policies regarding cash management, determination of allowable costs, employee travel, procurement and subrecipient monitoring. Condition: The Town has not documented in writing its policies regarding federal awards. Cause: Lack of documentation of policies and procedures. Effect: The Town is not in compliance with the Uniform Guidance requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to properly document all federal awards policies required by the Uniform Guidance. Views of Responsible Official: Management agrees with the finding.
Finding 2024-001
2024-001 U.S. Department of Treasury & U.S. Environmental Protection Agency Passed through the Commonwealth of Massachusetts – Massachusetts Clean Water Trust COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Capitalization Grants for Drinking Water State Revolving Fund – ALN 66.468 Significant Deficiency in Internal Controls Over Compliance and Other Matter Criteria: The Uniform Guidance requires written policies regarding cash management, determination of allowable costs, employee travel, procurement and subrecipient monitoring. Condition: The Town has not documented in writing its policies regarding federal awards. Cause: Lack of documentation of policies and procedures. Effect: The Town is not in compliance with the Uniform Guidance requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to properly document all federal awards policies required by the Uniform Guidance. Views of Responsible Official: Management agrees with the finding.
Finding 2024-002
2024-002 U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Significant Deficiency in Internal Controls Over Compliance and Other Matter Criteria: The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Per 2 CFR 200.1, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment. Condition: Obligations and expenditures were overstated by $93,955 on the March 31, 2024 Project and Expenditure report. Cause: The Town did not have a clear understanding of the reporting requirements and included amounts approved but not obligated as obligated and expended. Effect: The Town is not in compliance with grant reporting requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to only report obligations and expenditures on the Project and Expenditure reporting for items that meet the federal criteria for reporting as an obligation and expenditure. Views of Responsible Official: Management agrees with the finding.
Finding 2024-001
2024-001 U.S. Department of Treasury & U.S. Environmental Protection Agency Passed through the Commonwealth of Massachusetts – Massachusetts Clean Water Trust COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Capitalization Grants for Drinking Water State Revolving Fund – ALN 66.468 Significant Deficiency in Internal Controls Over Compliance and Other Matter Criteria: The Uniform Guidance requires written policies regarding cash management, determination of allowable costs, employee travel, procurement and subrecipient monitoring. Condition: The Town has not documented in writing its policies regarding federal awards. Cause: Lack of documentation of policies and procedures. Effect: The Town is not in compliance with the Uniform Guidance requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to properly document all federal awards policies required by the Uniform Guidance. Views of Responsible Official: Management agrees with the finding.
Finding 2024-001
2024-001 U.S. Department of Treasury & U.S. Environmental Protection Agency Passed through the Commonwealth of Massachusetts – Massachusetts Clean Water Trust COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Capitalization Grants for Drinking Water State Revolving Fund – ALN 66.468 Significant Deficiency in Internal Controls Over Compliance and Other Matter Criteria: The Uniform Guidance requires written policies regarding cash management, determination of allowable costs, employee travel, procurement and subrecipient monitoring. Condition: The Town has not documented in writing its policies regarding federal awards. Cause: Lack of documentation of policies and procedures. Effect: The Town is not in compliance with the Uniform Guidance requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to properly document all federal awards policies required by the Uniform Guidance. Views of Responsible Official: Management agrees with the finding.
Finding 2024-002
2024-002 U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Significant Deficiency in Internal Controls Over Compliance and Other Matter Criteria: The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Per 2 CFR 200.1, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment. Condition: Obligations and expenditures were overstated by $93,955 on the March 31, 2024 Project and Expenditure report. Cause: The Town did not have a clear understanding of the reporting requirements and included amounts approved but not obligated as obligated and expended. Effect: The Town is not in compliance with grant reporting requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to only report obligations and expenditures on the Project and Expenditure reporting for items that meet the federal criteria for reporting as an obligation and expenditure. Views of Responsible Official: Management agrees with the finding.