Audit 399773

2025-001 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number: Not available Pass-Through Agency: Massachusetts Department of Revenue Pass-Through Number(s): ARPA#2FUNDS0330 Award Period: July 1, 2024 – June 30, 2025 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For one (1) of five (5) transactions tested, the Town had a documented verification that the vendor was not suspended or debarred. However, the verification was not dated/time-stamped. Therefore, we could not determine if the verification occurred prior to entering into transaction with the vendor. Questioned Costs: None. Cause: Procedures were not in place to document the timing of the verification that all vendors were not suspended or debarred from participation in federal programs or activities. Effect: While this did not occur in the instance identified in this finding, lack of verification (or untimely verification) of vendors’ suspension or debarment status could cause federal grant funds to be expended to vendors that are excluded from participation in federal assistance programs or activities. Repeat Finding: No Recommendation: We recommend procedures be strengthened to ensure that the timing of the verification of vendors’ suspension and debarment status is documented prior to executing transactions. Views of responsible officials and planned corrective actions: Management agrees with the finding.

2025-002 Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Federal Award Identification Number: H027A230076, H027A230039, FH027A230076 Pass-Through Agency: Massachusetts Department of Education Pass-Through Number(s): 240-563190-2025-0326-5.0, 262-566046-2025-0326-5.0, 0274-000662- 2025-0326 Award Period: July 1, 2024 – June 30, 2025 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: For one (1) of fifteen (15) payroll transactions tested, the time and effort certification was not completed in a timely manner. Questioned Costs: None. Cause: Procedures were not in place to ensure that time and effort certifications were completed in a timely manner for all applicable transactions. Effect: Internal control finding. Repeat Finding: No Recommendation: We recommend procedures be strengthened to ensure that time and effort certifications are completed in a timely manner. Views of responsible officials and planned corrective actions: Management agrees with the finding.