CORRECTIVE ACTION PLAN
Oversight Agency for Audit: U.S. Department of Treasury
The Town of Billerica, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2023.
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 TREASURY
COVID-19 Coronavirus State and Local Fiscal Recovery Fund
Federal Assistance Listing Number 21.027
2023-002: Reporting to Federal Government
Compliance Requirement: Reporting
Type of Finding: Compliance and Internal Control over Compliance – Other Matter
Criteria or Specific Requirement: Grantees must comply with reporting requirements established by the U.S. Treasury. The Town is required to submit “Project and Expenditure” reports to the U.S. Treasury quarterly, which include, among other data, total expenditures incurred through the reporting period.
Condition: The quarterly report submitted by the Town for the period April to June 2023 did not reconcile with actual expenditures charged to the general ledger.
Questioned Costs: None reported.
Context: The Town filed the quarterly report timely, but did not report all expenditures that had been incurred through the end of the reporting period.
Effect: The expenditures reported were understated by approximately $572,000.
Cause: The Town generated an expenditure report from the general ledger system to assist in preparing the reporting submission; however, the report was not generated with the proper parameters to include all expenditures.
Recommendation: The Town should implement procedures to ensure that all expenditures incurred in a given reporting period are included on the applicable project and expenditure report. The Town should also ensure that the omitted expenditures are included in the next reporting submission.
Views of Responsible Officials and Planned Corrective Actions: Management was aware of the reporting inaccuracy, which was the result of a clerical error in generating reports. The error will be corrected on the subsequent report submitted in fiscal 2024.
If the Oversight Agency has requests regarding this plan, please call Paul Watson, Town Accountant, at 978-671-0923.
Sincerely yours,
Paul Watson
Town Accountant