FAC Explorer

Audit 363880

FY End
2023-06-30
Total Expended
$1.52M
Findings
6
Programs
10
Organization: Town of Hopedale, Massachusetts (MA)
Year: 2023 Accepted: 2025-08-07
Auditor: Robert E Brown II CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
573012 2023-001 - - AB
573013 2023-002 - - L
573014 2023-003 Material Weakness - I
1149454 2023-001 - - AB
1149455 2023-002 - - L
1149456 2023-003 Material Weakness - I

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $85,028 Yes 1
84.010 Title I Grants to Local Educational Agencies $43,220 - 0
10.553 School Breakfast Program $28,542 - 0
84.027 Special Education Grants to States $26,580 - 0
10.555 National School Lunch Program $13,853 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
16.710 Public Safety Partnership and Community Policing Grants $6,867 - 0
84.173 Special Education Preschool Grants $5,649 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $3,200 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $1,474 - 0

Contacts

Name Title Type
V4KZG3B8LA24 Kelly Grant Auditee
5086342203 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 Hopedale, 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 Hopedale, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Hopedale, 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 Hopedale, 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 Hopedale, Massachusetts passed no federal awards through to sub-recipients during the period under audit. De Minimis Rate Used: N Rate Explanation: The Town of Hopedale, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Town of Hopedale, 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 Hopedale, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Hopedale, 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 Hopedale, 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 Hopedale, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Hopedale, 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 Hopedale, 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 Hopedale, Massachusetts passed no federal awards through to sub-recipients during the period under audit. De Minimis Rate Used: N Rate Explanation: The Town of Hopedale, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. 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 Hopedale, 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 Hopedale, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Hopedale, 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 Hopedale, 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 Hopedale, Massachusetts passed no federal awards through to sub-recipients during the period under audit. De Minimis Rate Used: N Rate Explanation: The Town of Hopedale, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The Town of Hopedale, 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 Hopedale, 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 Hopedale, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Hopedale, 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 Hopedale, 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 Hopedale, Massachusetts passed no federal awards through to sub-recipients during the period under audit. De Minimis Rate Used: N Rate Explanation: The Town of Hopedale, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. 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 Hopedale, 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 Hopedale, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Hopedale, 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 Hopedale, 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 Hopedale, Massachusetts passed no federal awards through to sub-recipients during the period under audit. De Minimis Rate Used: N Rate Explanation: The Town of Hopedale, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The Town of Hopedale, Massachusetts passed no federal awards through to sub-recipients during the period under audit.

Finding Details

Finding 2023-001
Finding 2023-001 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Other Matters Related to Internal Control over Compliance of the Major Program Condition: During our test of controls over compliance it was noted that an expense charged to the major program (High Quality Summer Learning) was not included as part of the approved budget for the “Contracted Services” budget line. 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 expenditures posted to the major program (High Quality Summer Learning) it was noted that costs that were originally budgeted to “Stipends” was charged to “Contracted Services”, thus overspending the “Contracted Services” budget line by $8,475.04 or 214.78% which would have required an Amendment. Effect: The Town of Hopedale 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: $8,475.04 Cause: Mistake in Reporting Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Hopedale follow procedures to ensure that expenditures charged to the grants are allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles) Managements Response: Going forward, we will ensure that contracted services are recorded as contracted services and not stipends.
Finding 2023-002
Finding 2023-002 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Other Matters Related to Internal Control over Compliance of the Major Program Condition: Upon review of the Town of Hopedale’s report filed with the U.S. Department of Treasury it was noted that the reports did not agree with the Town’s accounting ledgers in regards to expenditures for the Current Period of reporting. The report filed with the U.S. Department of Treasury reported the Total Cumulative Expenditures instead of the Current Period Expenditures. Criteria: Per the U.S. Department of Treasury the Town was required to submit an accurate annual Recovery Plan Performance Report. Context: The annual report submitted to the U.S. Department of Treasury reported Total Cumulative Expenditures instead of the current period expenditures. Effect: The Town of Hopedale was not in compliance with the U.S. Department of Treasury reporting requirements. Questioned Costs: N/A Cause: Lack of oversight on grant management. Identification as a Repeat Finding: N/A Recommendation: The Town of Hopedale should complete and submit all required annual reporting by the due date designated by the Federal Agency and ensure that it agrees with grant activity for time period reported. Managements Response: All information reported was corrected with the Treasury and there are new procedures in place for documentation and reporting.
Finding 2023-003
Finding 2023-003 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. As governmental subrecipients of states they are also required to use the same state procurement policies and procedures for federal funds as for non‐federal funds, the Town is required to follow Massachusetts General Laws, Chapter (MGL) 30(b). MGL 30(b) requires the solicitation of three written or oral quotes for procurements of supplies between $10,000 and $49,999 and sealed bids or proposals for procurements of supplies $50,000 and over. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. Condition: During fiscal year 2023, the Town could not provide evidence that they complied with the required procurement policies and procedures in place as it related to two of the expenses charged to the major program. Context: The Town purchased a new boiler for the School however the procurement documentation could not be located and the employee who would have overseen the project was unavailable to provide the supporting documentation. In addition, the Town could not locate or provide evidence that procurement procedures were followed when selecting an engineer for the Water Tank project. Questioned Costs: $71,500 related to the School Boiler Project and $170,163.70 related to the Water Tank Project. Cause: Directors used the Massachusetts procurement guidelines and not federal guidelines. Effect or Potential Effect: There is a risk that the amount charged to the federal awards major program may not be in accordance with procurement, suspension, and debarment principles. Identification as a Repeat Finding: N/A Recommendation: The Town of Hopedale should address the noncompliance and material weakness in internal controls noted above in order to ensure that procurements are conducted in accordance with federal and state requirements. Management Response: New procedures in place for documentation and reporting.
Finding 2023-001
Finding 2023-001 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Other Matters Related to Internal Control over Compliance of the Major Program Condition: During our test of controls over compliance it was noted that an expense charged to the major program (High Quality Summer Learning) was not included as part of the approved budget for the “Contracted Services” budget line. 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 expenditures posted to the major program (High Quality Summer Learning) it was noted that costs that were originally budgeted to “Stipends” was charged to “Contracted Services”, thus overspending the “Contracted Services” budget line by $8,475.04 or 214.78% which would have required an Amendment. Effect: The Town of Hopedale 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: $8,475.04 Cause: Mistake in Reporting Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Hopedale follow procedures to ensure that expenditures charged to the grants are allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles) Managements Response: Going forward, we will ensure that contracted services are recorded as contracted services and not stipends.
Finding 2023-002
Finding 2023-002 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Other Matters Related to Internal Control over Compliance of the Major Program Condition: Upon review of the Town of Hopedale’s report filed with the U.S. Department of Treasury it was noted that the reports did not agree with the Town’s accounting ledgers in regards to expenditures for the Current Period of reporting. The report filed with the U.S. Department of Treasury reported the Total Cumulative Expenditures instead of the Current Period Expenditures. Criteria: Per the U.S. Department of Treasury the Town was required to submit an accurate annual Recovery Plan Performance Report. Context: The annual report submitted to the U.S. Department of Treasury reported Total Cumulative Expenditures instead of the current period expenditures. Effect: The Town of Hopedale was not in compliance with the U.S. Department of Treasury reporting requirements. Questioned Costs: N/A Cause: Lack of oversight on grant management. Identification as a Repeat Finding: N/A Recommendation: The Town of Hopedale should complete and submit all required annual reporting by the due date designated by the Federal Agency and ensure that it agrees with grant activity for time period reported. Managements Response: All information reported was corrected with the Treasury and there are new procedures in place for documentation and reporting.
Finding 2023-003
Finding 2023-003 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. As governmental subrecipients of states they are also required to use the same state procurement policies and procedures for federal funds as for non‐federal funds, the Town is required to follow Massachusetts General Laws, Chapter (MGL) 30(b). MGL 30(b) requires the solicitation of three written or oral quotes for procurements of supplies between $10,000 and $49,999 and sealed bids or proposals for procurements of supplies $50,000 and over. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. Condition: During fiscal year 2023, the Town could not provide evidence that they complied with the required procurement policies and procedures in place as it related to two of the expenses charged to the major program. Context: The Town purchased a new boiler for the School however the procurement documentation could not be located and the employee who would have overseen the project was unavailable to provide the supporting documentation. In addition, the Town could not locate or provide evidence that procurement procedures were followed when selecting an engineer for the Water Tank project. Questioned Costs: $71,500 related to the School Boiler Project and $170,163.70 related to the Water Tank Project. Cause: Directors used the Massachusetts procurement guidelines and not federal guidelines. Effect or Potential Effect: There is a risk that the amount charged to the federal awards major program may not be in accordance with procurement, suspension, and debarment principles. Identification as a Repeat Finding: N/A Recommendation: The Town of Hopedale should address the noncompliance and material weakness in internal controls noted above in order to ensure that procurements are conducted in accordance with federal and state requirements. Management Response: New procedures in place for documentation and reporting.