FAC Explorer

Audit 51046

FY End
2022-06-30
Total Expended
$5.85M
Findings
6
Programs
17
Organization: Town of Hingham, Massachusetts (MA)
Year: 2022 Accepted: 2022-12-18
Auditor: Cliftonlarsonallenllp

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50249 2022-001 Significant Deficiency - I
50250 2022-002 Significant Deficiency - AB
50251 2022-002 Significant Deficiency - AB
626691 2022-001 Significant Deficiency - I
626692 2022-002 Significant Deficiency - AB
626693 2022-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.20M Yes 1
21.019 Coronavirus Relief Fund $529,048 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $431,447 Yes 1
93.778 Medical Assistance Program $278,340 - 0
84.425 Education Stabilization Fund $201,550 - 0
10.555 National School Lunch Program $158,372 Yes 0
84.027 Special Education_grants to States $84,043 - 0
97.044 Assistance to Firefighters Grant $61,061 - 0
10.553 School Breakfast Program $57,099 Yes 0
84.010 Title I Grants to Local Educational Agencies $48,985 - 0
45.310 Grants to States $37,335 - 0
15.616 Clean Vessel Act Program $18,233 - 0
84.367 Improving Teacher Quality State Grants $17,415 - 0
84.173 Special Education_preschool Grants $12,028 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
20.610 State Traffic Safety Information System Improvement Grants $5,429 - 0
97.042 Emergency Management Performance Grants $5,100 Yes 1

Contacts

Name Title Type
NKBAM3NL2QD5 Susan Nickerson Auditee
7818042473 James Piotrowski Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 U.S. DEPARTMENT OF AGRICULTURE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Hingham, Massachusetts under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Hingham, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Hingham, Massachusetts. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 for all awards with the exception of assistance listing numbers 21.019 and 21.027, which follow criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Town of Hingham, Massachusetts did not elect to use the 10-percent de minimis indirect cost rate identified in ?200.414 of the Uniform Guidance. The amount reported for the National School Lunch Program Non-Cash Assistance (Commodities) represents non-monetary assistance and is reported in the Schedule at the fair market value of the commodities received. The amount reported for the National School Lunch Program and School Breakfast Program Cash Assistance represents cash receipts from federal reimbursements.
Title: NOTE 4 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Hingham, Massachusetts under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Hingham, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Hingham, Massachusetts. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 for all awards with the exception of assistance listing numbers 21.019 and 21.027, which follow criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Town of Hingham, Massachusetts did not elect to use the 10-percent de minimis indirect cost rate identified in ?200.414 of the Uniform Guidance. The amount reported for the School-Based Medicaid Reimbursement Program represents federal reimbursements for Administrative Activity Claims.
Title: NOTE 5 U.S. DEPARTMENT OF HOMELAND SECURITY Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Hingham, Massachusetts under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Hingham, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Hingham, Massachusetts. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 for all awards with the exception of assistance listing numbers 21.019 and 21.027, which follow criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Town of Hingham, Massachusetts did not elect to use the 10-percent de minimis indirect cost rate identified in ?200.414 of the Uniform Guidance. The amounts reported for the Disaster Grants Public Assistance and Emergency Management Performance Grants represent federal reimbursements.

Finding Details

Finding 2022-001
2022 ? 001 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: N/A Pass-Through Agency: Commonwealth of Massachusetts Executive Office of Administration and Finance Pass-Through Number(s): N/A Award Period: March 3, 2021 through December 31, 2024 Compliance Requirement: Procurement Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Title 2 of the U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of procurement, suspension, and debarment compliance requirements. The Town should have internal controls designed to ensure compliance with those provisions. Specifically, CFR Title 2, part 200.318 states that the non-Federal entity (the Town) must have and use documented procurement procedures which conform to the procurement standards identified in Title 2 CFR parts 200.317 through 200.327, as well as State and local regulations, for the acquisition of property or services required under a Federal award or subaward. Condition and Context: The Town did not maintain a current procurement policy that met the criteria outlined by Title 2 of the U.S. Code of Federal Regulations part 200.318. Questioned costs: Not applicable. Cause: Procurement policies and procedures are not documented in accordance with Title 2 of the U.S. Code of Federal Regulations. Effect: Noncompliance with federal compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend the Town design and document a procurement policy in accordance with the compliance requirements outlined in Title 2 of the U.S. Code of Federal Regulations part 200.318. Views of responsible officials: Management agrees with the finding. Please refer to the Corrective Action Plan.
Finding 2022-002
2022 ? 002 Federal Agency: U.S. Department of Homeland Security Federal Program Name: COVID-19 - Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Federal Award Identification Number and Year: FEMA-4496-DR (1/20/2020 and continuing) Pass-Through Agency: Massachusetts Emergency Management Agency Pass-Through Number(s): CT CDA CTFEMA4496HINGH00XXX Award Period: February 2021 ? June 2021 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The United States 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. Such records should support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on a federal award and a non-federal award. Condition: We noted that for a sample of payroll disbursements the total amount charged to the grant was not supported by accurate documentation. Questioned costs: Below the reportable limit Context: Sixty payroll transactions were selected for testing in our statistically valid sample and the following exceptions were noted: ? For 3 of 60 disbursements, the Town requested reimbursement for certain overtime hours for one employee which were supported by records of time worked by a different employee. ? For 1 of 60 disbursements, the Town disbursed reimbursable expenses for hours reported as overtime which were documented as regular time in the supporting records ? For 2 of 60 disbursements, the employee?s base rate of pay used to calculate the reimbursement request was incorrect. Cause: Policies and procedures were not implemented to ensure that costs charged to the program were based on adequate supporting documentation. Effect: Unallowable costs were charged to the program. Repeat Finding: No. Recommendation: We recommend the Town enhance procedures and controls to ensure that payroll costs charged to the grant are adequately documented. Views of responsible officials: Management agrees with the finding. Please refer to the Corrective Action Plan.
Finding 2022-002
2022 ? 002 Federal Agency: U.S. Department of Homeland Security Federal Program Name: COVID-19 - Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Federal Award Identification Number and Year: FEMA-4496-DR (1/20/2020 and continuing) Pass-Through Agency: Massachusetts Emergency Management Agency Pass-Through Number(s): CT CDA CTFEMA4496HINGH00XXX Award Period: February 2021 ? June 2021 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The United States 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. Such records should support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on a federal award and a non-federal award. Condition: We noted that for a sample of payroll disbursements the total amount charged to the grant was not supported by accurate documentation. Questioned costs: Below the reportable limit Context: Sixty payroll transactions were selected for testing in our statistically valid sample and the following exceptions were noted: ? For 3 of 60 disbursements, the Town requested reimbursement for certain overtime hours for one employee which were supported by records of time worked by a different employee. ? For 1 of 60 disbursements, the Town disbursed reimbursable expenses for hours reported as overtime which were documented as regular time in the supporting records ? For 2 of 60 disbursements, the employee?s base rate of pay used to calculate the reimbursement request was incorrect. Cause: Policies and procedures were not implemented to ensure that costs charged to the program were based on adequate supporting documentation. Effect: Unallowable costs were charged to the program. Repeat Finding: No. Recommendation: We recommend the Town enhance procedures and controls to ensure that payroll costs charged to the grant are adequately documented. Views of responsible officials: Management agrees with the finding. Please refer to the Corrective Action Plan.
Finding 2022-001
2022 ? 001 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: N/A Pass-Through Agency: Commonwealth of Massachusetts Executive Office of Administration and Finance Pass-Through Number(s): N/A Award Period: March 3, 2021 through December 31, 2024 Compliance Requirement: Procurement Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Title 2 of the U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of procurement, suspension, and debarment compliance requirements. The Town should have internal controls designed to ensure compliance with those provisions. Specifically, CFR Title 2, part 200.318 states that the non-Federal entity (the Town) must have and use documented procurement procedures which conform to the procurement standards identified in Title 2 CFR parts 200.317 through 200.327, as well as State and local regulations, for the acquisition of property or services required under a Federal award or subaward. Condition and Context: The Town did not maintain a current procurement policy that met the criteria outlined by Title 2 of the U.S. Code of Federal Regulations part 200.318. Questioned costs: Not applicable. Cause: Procurement policies and procedures are not documented in accordance with Title 2 of the U.S. Code of Federal Regulations. Effect: Noncompliance with federal compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend the Town design and document a procurement policy in accordance with the compliance requirements outlined in Title 2 of the U.S. Code of Federal Regulations part 200.318. Views of responsible officials: Management agrees with the finding. Please refer to the Corrective Action Plan.
Finding 2022-002
2022 ? 002 Federal Agency: U.S. Department of Homeland Security Federal Program Name: COVID-19 - Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Federal Award Identification Number and Year: FEMA-4496-DR (1/20/2020 and continuing) Pass-Through Agency: Massachusetts Emergency Management Agency Pass-Through Number(s): CT CDA CTFEMA4496HINGH00XXX Award Period: February 2021 ? June 2021 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The United States 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. Such records should support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on a federal award and a non-federal award. Condition: We noted that for a sample of payroll disbursements the total amount charged to the grant was not supported by accurate documentation. Questioned costs: Below the reportable limit Context: Sixty payroll transactions were selected for testing in our statistically valid sample and the following exceptions were noted: ? For 3 of 60 disbursements, the Town requested reimbursement for certain overtime hours for one employee which were supported by records of time worked by a different employee. ? For 1 of 60 disbursements, the Town disbursed reimbursable expenses for hours reported as overtime which were documented as regular time in the supporting records ? For 2 of 60 disbursements, the employee?s base rate of pay used to calculate the reimbursement request was incorrect. Cause: Policies and procedures were not implemented to ensure that costs charged to the program were based on adequate supporting documentation. Effect: Unallowable costs were charged to the program. Repeat Finding: No. Recommendation: We recommend the Town enhance procedures and controls to ensure that payroll costs charged to the grant are adequately documented. Views of responsible officials: Management agrees with the finding. Please refer to the Corrective Action Plan.
Finding 2022-002
2022 ? 002 Federal Agency: U.S. Department of Homeland Security Federal Program Name: COVID-19 - Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Federal Award Identification Number and Year: FEMA-4496-DR (1/20/2020 and continuing) Pass-Through Agency: Massachusetts Emergency Management Agency Pass-Through Number(s): CT CDA CTFEMA4496HINGH00XXX Award Period: February 2021 ? June 2021 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The United States 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. Such records should support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on a federal award and a non-federal award. Condition: We noted that for a sample of payroll disbursements the total amount charged to the grant was not supported by accurate documentation. Questioned costs: Below the reportable limit Context: Sixty payroll transactions were selected for testing in our statistically valid sample and the following exceptions were noted: ? For 3 of 60 disbursements, the Town requested reimbursement for certain overtime hours for one employee which were supported by records of time worked by a different employee. ? For 1 of 60 disbursements, the Town disbursed reimbursable expenses for hours reported as overtime which were documented as regular time in the supporting records ? For 2 of 60 disbursements, the employee?s base rate of pay used to calculate the reimbursement request was incorrect. Cause: Policies and procedures were not implemented to ensure that costs charged to the program were based on adequate supporting documentation. Effect: Unallowable costs were charged to the program. Repeat Finding: No. Recommendation: We recommend the Town enhance procedures and controls to ensure that payroll costs charged to the grant are adequately documented. Views of responsible officials: Management agrees with the finding. Please refer to the Corrective Action Plan.