FAC Explorer

Audit 6595

FY End
2023-06-30
Total Expended
$5.02M
Findings
6
Programs
16
Organization: Town of Hingham, Massachusetts (MA)
Year: 2023 Accepted: 2023-12-14
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4285 2023-002 Material Weakness - AB
4286 2023-003 Significant Deficiency - I
4287 2023-004 Significant Deficiency Yes AB
580727 2023-002 Material Weakness - AB
580728 2023-003 Significant Deficiency - I
580729 2023-004 Significant Deficiency Yes AB

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.39M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $254,752 - 0
84.425 Education Stabilization Fund $154,703 Yes 0
93.778 Medical Assistance Program $119,987 - 0
10.555 National School Lunch Program $110,044 - 0
84.027 Special Education_grants to States $107,204 Yes 0
45.310 Grants to States $55,995 - 0
97.044 Assistance to Firefighters Grant $29,117 - 0
10.553 School Breakfast Program $26,198 - 0
97.039 Hazard Mitigation Grant $16,800 - 0
84.367 Improving Teacher Quality State Grants $11,140 - 0
84.010 Title I Grants to Local Educational Agencies $10,556 - 0
84.424 Student Support and Academic Enrichment Program $8,187 - 0
20.610 State Traffic Safety Information System Improvement Grants $7,602 - 0
15.616 Clean Vessel Act Program $3,894 - 0
84.173 Special Education_preschool Grants $1,292 Yes 0

Contacts

Name Title Type
NKBAM3NL2QD5 Michell Monsegur Auditee
7817411451 James Piotrowski Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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 number 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 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, 2023. 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.
Title: U.S. Department of Agriculture 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 number 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 – Cash Assistance, School Breakfast Program – Cash Assistance, and Supply Chain Assistance – Cash Assistance represents cash receipts from federal reimbursements.
Title: U.S. Department of Health and Human Services 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 number 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: U.S. Department of Homeland Security 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 number 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 COVID-19 Disaster Grants – Public Assistance and Hazard Mitigation Grant represent federal reimbursements.

Finding Details

Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84,027, 84.173 Federal Award Identification Number: N/A Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education and the Massachusetts Department of Early Education and Care Pass-Through Number(s): 240-585359-2022-0131, 240-744100-2023-0131, 252-610784-2022-0131, 262-585362-2022-0131, 262-744101-2023-0131, 264-610783-2022-0131 Award Period: July 1, 2021 – June 30, 2023 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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: Three (3) of nine (9) payroll transactions in our statistically valid sample were not supported with documentation of level of effort for the grant. Questioned costs: • Known: $13,438 • Likely: $96,278 Cause: Procedures were not in place to ensure that supporting payroll records accurately reflected the time and effort charged to the program. Effect: Noncompliance with federal compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend procedures be implemented to ensure that records supporting the distribution of employee time and effort accurately reflect the charges to the grant program. Views of responsible officials: Hingham Public Schools has circulated training guides and templates to grant writers on the requirement to have time and effort reporting completed in a timely manner for staff assigned to specific grants. Grant accounting associates have also been provided with the training material to ensure that there is an additional review of time and effort reports as part of the grant accounting, review and finalization process.
Finding 2023-003
Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Federal Award Identification Number: N/A Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education and the Massachusetts Department of Early Education and Care Pass-Through Number(s): 240-585359-2022-0131, 240-744100-2023-0131, 252-610784-2022-0131, 262-585362-2022-0131, 262-744101-2023-0131, 264-610783-2022-0131 Award Period: July 1, 2021 – June 30, 2023 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance, 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: Procedures were not in place to ensure three (3) of five (5) vendors selected for testing in our statistically valid sample and paid from the grant award were not suspended or debarred. Upon further testing, it was determined none of the vendors were suspended or debarred. Questioned costs: None Cause: Procedures were not in place to ensure vendors are not suspended or debarred. Effect: Federal funds could be expended to suspended or debarred vendors and subject to disallowance. Repeat Finding: No. Recommendation: We recommend the Town enhance procedures and controls to ensure verifications of suspension and debarment statuses are obtained from vendors prior to executing transactions with these vendors. Views of responsible officials: Management has updated procedures to ensure vendors are not suspended or debarred and has shared and reviewed this information with staff to ensure that the procedure is carefully followed.
Finding 2023-004
Federal Agency: U.S. Department of Education Federal Program Name: ESSER I Assistance Listing Number: 84.425D Federal Award Identification Number: N/A Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 113-397270-2021-0131 Award Period: July 1, 2021 – June 30, 2023 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters 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: Ten (10) of ten (10) payroll transactions in our statistically valid sample were supported by records which accurately reflected the work performed. However, such records did not include documented evidence of review and approval which would provide reasonable assurance that the charges were accurate, allowable, and properly allocated. Questioned costs: Below the reportable limit Cause: Procedures were not in place to ensure the payroll records were supported by the Town’s internal controls. Effect: Federal funds could be expended for unallowable activities and subject to disallowance. Repeat Finding: Yes, 2022-002 Recommendation: We recommend procedures be implemented to ensure that the records supporting payroll charges to the federal grant program include documented evidence of review and approval. Views of responsible officials: The Hingham Public School's general weekly payroll is approved on a weekly basis by Management. In the case of our summer programs a similar control has been put in place by Management to ensure all payroll records are approved before processing.
Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84,027, 84.173 Federal Award Identification Number: N/A Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education and the Massachusetts Department of Early Education and Care Pass-Through Number(s): 240-585359-2022-0131, 240-744100-2023-0131, 252-610784-2022-0131, 262-585362-2022-0131, 262-744101-2023-0131, 264-610783-2022-0131 Award Period: July 1, 2021 – June 30, 2023 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) 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: Three (3) of nine (9) payroll transactions in our statistically valid sample were not supported with documentation of level of effort for the grant. Questioned costs: • Known: $13,438 • Likely: $96,278 Cause: Procedures were not in place to ensure that supporting payroll records accurately reflected the time and effort charged to the program. Effect: Noncompliance with federal compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend procedures be implemented to ensure that records supporting the distribution of employee time and effort accurately reflect the charges to the grant program. Views of responsible officials: Hingham Public Schools has circulated training guides and templates to grant writers on the requirement to have time and effort reporting completed in a timely manner for staff assigned to specific grants. Grant accounting associates have also been provided with the training material to ensure that there is an additional review of time and effort reports as part of the grant accounting, review and finalization process.
Finding 2023-003
Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Federal Award Identification Number: N/A Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education and the Massachusetts Department of Early Education and Care Pass-Through Number(s): 240-585359-2022-0131, 240-744100-2023-0131, 252-610784-2022-0131, 262-585362-2022-0131, 262-744101-2023-0131, 264-610783-2022-0131 Award Period: July 1, 2021 – June 30, 2023 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance, 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: Procedures were not in place to ensure three (3) of five (5) vendors selected for testing in our statistically valid sample and paid from the grant award were not suspended or debarred. Upon further testing, it was determined none of the vendors were suspended or debarred. Questioned costs: None Cause: Procedures were not in place to ensure vendors are not suspended or debarred. Effect: Federal funds could be expended to suspended or debarred vendors and subject to disallowance. Repeat Finding: No. Recommendation: We recommend the Town enhance procedures and controls to ensure verifications of suspension and debarment statuses are obtained from vendors prior to executing transactions with these vendors. Views of responsible officials: Management has updated procedures to ensure vendors are not suspended or debarred and has shared and reviewed this information with staff to ensure that the procedure is carefully followed.
Finding 2023-004
Federal Agency: U.S. Department of Education Federal Program Name: ESSER I Assistance Listing Number: 84.425D Federal Award Identification Number: N/A Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 113-397270-2021-0131 Award Period: July 1, 2021 – June 30, 2023 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters 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: Ten (10) of ten (10) payroll transactions in our statistically valid sample were supported by records which accurately reflected the work performed. However, such records did not include documented evidence of review and approval which would provide reasonable assurance that the charges were accurate, allowable, and properly allocated. Questioned costs: Below the reportable limit Cause: Procedures were not in place to ensure the payroll records were supported by the Town’s internal controls. Effect: Federal funds could be expended for unallowable activities and subject to disallowance. Repeat Finding: Yes, 2022-002 Recommendation: We recommend procedures be implemented to ensure that the records supporting payroll charges to the federal grant program include documented evidence of review and approval. Views of responsible officials: The Hingham Public School's general weekly payroll is approved on a weekly basis by Management. In the case of our summer programs a similar control has been put in place by Management to ensure all payroll records are approved before processing.