Finding 539092 (2024-001)

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Requirement
L
Questioned Costs
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Year
2024
Accepted
2025-03-28
Audit: 349789
Organization: Town of Brewster, Massachusetts (MA)

AI Summary

  • Core Issue: The Town of Brewster's annual report to the U.S. Department of Treasury did not match its accounting records, indicating a reporting error.
  • Impacted Requirements: The Town failed to comply with the requirement to submit an accurate Recovery Plan Performance Report.
  • Recommended Follow-Up: Ensure all future reports are accurate and submitted on time, with a review process to prevent similar errors.

Finding Text

Finding 2024-001 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Other Matters Related to Internal Control over Compliance of the Major Program Condition: Upon review of the Town of Brewster’s report filed with the U.S. Department of Treasury it was noted that the reports did not agree with the Town’s accounting ledgers. Criteria: Per the U.S. Department of Treasury the Town was required to submit an accurate annual Recovery Plan Performance Report. Context: The annual report submitted to the U.S. Department of Treasury reported expenditures that did not agree with the Town’s accounting ledger. Effect: The Town of Brewster was not in compliance with the U.S. Department of Treasury reporting requirements. Questioned Costs: N/A Cause: The Finance Director reported an incorrect amount of ARPA expenditures on the 2024 Annual ARPA report to the US Department of Treasury. Identification as a Repeat Finding: No Recommendation: The Town of Brewster should complete and submit all required annual reporting by the due date designated by the Federal Agency and ensure that it agrees with grant activity for time period reported. Managements Response: In reviewing this finding, the Finance Director identified that the Town’s current accounting software automatically updated the date range for a report used to calculate totals for the Recovery Plan Performance Report which resulted in this one-time error. The Finance Director did not notice this mistake at the time, has taken full responsibility, and will only report correct amounts going forward.

Corrective Action Plan

February 24, 2025 The Town of Brewster, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Robert E. Brown II, CPA 25 Cemetery Street P.O. Box 230 Mendon, Massachusetts 01756 Audit period: The finding from the June 30, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule of expenditures of federal awards. Finding 2024-001 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Other Matters Related to Internal Control over Compliance of the Major Program Condition: Upon review of the Town of Brewster’s report filed with the U.S. Department of Treasury it was noted that the reports did not agree with the Town’s accounting ledgers. Criteria: Per the U.S. Department of Treasury the Town was required to submit an accurate annual Recovery Plan Performance Report. Context: The annual report submitted to the U.S. Department of Treasury reported expenditures that did not agree with the general ledger. Effect: The Town of Brewster was not in compliance with the U.S. Department of Treasury reporting requirements. Questioned Costs: N/A Cause: The Finance Director reported an incorrect amount of ARPA expenditures on the 2024 Annual ARPA report to the US Department of Treasury. Identification as a Repeat Finding: No Recommendation: The Town of Brewster should complete and submit all required annual reporting by the due date designated by the Federal Agency and ensure that it agrees with grant activity for time period reported. Responsible for Corrective Plan: The Finance Director will verify amounts are accurate before reporting on the next Annual ARPA report. Estimated Completion Date: Immediately. Action Taken: In reviewing this finding, the Finance Director identified that the Town’s current accounting software automatically updated the date range for a report used to calculate totals for the Recovery Plan Performance Report which resulted in this one-time error. The Finance Director did not notice this mistake at the time, has taken full responsibility, and will only report correct amounts going forward.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $495,633
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $306,990
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $238,253
97.044 Assistance to Firefighters Grant $71,493
10.553 School Breakfast Program $33,717
10.555 National School Lunch Program $18,601
94.042 Emergency Management Perfromance Grant $1,645