Finding 573012 (2023-001)

Finding 2023-001 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Other Matters Related to Internal Control over Compliance of the Major Program Condition: During our test of controls over compliance it was noted that an expense charged to the major program (High Quality Summer Learning) was not included as part of the approved budget for the “Contracted Services” budget line. Criteria: Costs charged to the major program should meet the requirements as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Context: During our review of expenditures posted to the major program (High Quality Summer Learning) it was noted that costs that were originally budgeted to “Stipends” was charged to “Contracted Services”, thus overspending the “Contracted Services” budget line by $8,475.04 or 214.78% which would have required an Amendment. Effect: The Town of Hopedale was not in compliance with the allowable costs/ cost principals requirement as set forth by the Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles). Questioned Costs: $8,475.04 Cause: honest mistake in reporting Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Hopedale follow procedures to ensure that expenditures charged to the grants are allowable costs as set forth by Uniform Guidance 2 CFR Part 200, subpart E (Cost Principles) Responsible for Corrective Plan: Lynne Davis Estimated Completion Date: 7/1/24 Action Taken: Going forward, we will ensure that contracted services are recorded as contracted services and not stipends.