CORRECTIVE ACTION PLAN
Oversight Agency for Audit: U.S. Department of Treasury
The City of Peabody, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2023.
Name and address of independent public accounting firm:
Powers & Sullivan, LLC
100 Quannapowitt Parkway, Suite 101
Wakefield, MA 01880
Audit period: July 1, 2022 through June 30, 2023
The finding from the June 30, 2023, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule.
FINDINGS—FEDERAL AWARD PROGRAMS AUDITS
U.S. DEPARTMENT OF EDUCATION
Passed through Massachusetts Department of Elementary and Secondary Education
Education Stabilization Fund
Education Stabilization Fund Federal Assistance Listing No. 84.425D, 84.425U and 84.425W
2023-008: Reporting to the State
Compliance Requirement: Reporting
Type of Finding: Compliance and Material Weakness in Internal Control Over Compliance
Criteria or Specific Requirement: Grantees must comply with reporting requirements established by the Massachusetts Department of Elementary and Secondary Education, the City’s Pass-Through Grantor (State). In order for the State to comply with federal reporting requirements, the City is required to submit complete and accurate “Recipient Data Collection Forms” to the State.
Condition: The City was unable to provide copies of the Recipient Data Collection Forms submitted to the State.
Context: The City did not maintain sufficient documentation to demonstrate compliance with grant reporting requirements.
Effect: The City has not complied with the grant requirements.
Cause: Management has not established guidelines and procedures to ensure and demonstrate that required reporting is completed, retained, and available upon request.
Questioned Costs: None reported.
Recommendation: The City should implement internal control procedures to ensure compliance with all grant requirements including the completion and retention of all required reports. The documentation should be filed in an organized manner and readily available upon request.
Views of Responsible Officials and Planned Corrective Actions: The School District will implement internal control procedures to ensure that the required reporting is completed, retained and maintained in an organized manner. Management plans to implement these procedures in 2024.
If the Oversight Agency has questions regarding this plan, please call Samuel Rippin, School Business Manager, at 978-536-6520.
Sincerely yours,
Samuel Rippin
School Business Manager
City of Peabody