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HomeMy WebLinkAboutCohasset FY2020 SEFA TOWN OF COHASSET, MASSACHUESTTS REPORTS ON FEDERAL AWARD PROGRAMS YEAR ENDED JUNE 30, 2020 TOWN OF COHASSET, MASSACHUSETTS REPORTS ON FEDERAL AWARD PROGRAMS YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS Page Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards ....................... 1  Report on compliance for each major federal program; report on internal control over compliance; and report on schedule of expenditures of federal awards required by the Uniform Guidance ...................... 3  Schedule of expenditures of federal awards ........................................................................................................ 6  Notes to schedule of expenditures of federal awards .......................................................................................... 7  Schedule of findings and questioned costs .......................................................................................................... 8  1 financial statements performed in accordance with Government Auditing Standards REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report To the Honorable Board of Selectmen Town of Cohasset, Massachusetts We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the Town of Cohasset, Massachusetts, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Town of Cohasset, Massachusetts’ basic financial statements, and have issued our report thereon dated February 9, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town of Cohasset, Massachusetts’ internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Cohasset, Massachusetts’ internal control. Accordingly, we do not express an opinion on the effectiveness of the Town of Cohasset, Massachusetts’ internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town of Cohasset, Massachusetts’ financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 2 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. February 19, 2021 3 schedule of expenditures of federal awards required by the Uniform Guidance REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE Independent Auditor’s Report To the Honorable Board of Selectmen Town of Cohasset, Massachusetts Report on Compliance for Each Major Federal Program We have audited the Town of Cohasset, Massachusetts’ compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Town of Cohasset, Massachusetts’ major federal programs for the year ended June 30, 2020. The Town of Cohasset, Massachusetts’ major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Town of Cohasset, Massachusetts’ major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town of Cohasset, Massachusetts’ compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Town of Cohasset, Massachusetts’ compliance. 4 Opinion on Each Major Federal Program In our opinion, the Town of Cohasset, Massachusetts complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. Report on Internal Control Over Compliance Management of the Town of Cohasset, Massachusetts, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Town of Cohasset, Massachusetts’ internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Town of Cohasset, Massachusetts’ internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Cohasset, Massachusetts, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Town of Cohasset, Massachusetts’ basic financial statements. We issued our report thereon dated February 9, 2021, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing 5 procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. February 19, 2021 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2020 Federal Pass-Through Amount Passed CFDA Entity Identifying Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Number Sub-Recipients Expenditures CHILD NUTRITION CLUSTER: U.S. DEPARTMENT OF AGRICULTURE: Passed through Massachusetts Department of Elementary and Secondary Education: Non-Cash Assistance (Commodities): National School Lunch Program.........……………………………………………………… 10.555 11-065 $ - $ 20,375 Cash Assistance: National School Lunch Program.........…………………………………………………… 10.555 11-065 - 41,527 COVID-19 - National School Lunch…....................................................................... 10.555 11-065 - 732 Total National School Lunch Program………………………………………………… - 62,634 Cash Assistance: School Breakfast Program........…………………………………………………………… 10.553 11-065 - 2,809 COVID-19 - School Breakfast Program…................................................................... 10.553 11-065 - 462 Total School Breakfast Program………………………………………………………… - 3,271 TOTAL CHILD NUTRITION CLUSTER………………………………………………… - 65,905 SPECIAL EDUCATION CLUSTER: U.S. DEPARTMENT OF EDUCATION: Passed through Massachusetts Department of Elementary and Secondary Education: Special Education Grants to States (IDEA, Part B).........………………………………… 84.027 240-292203-2020-0065 - 320,049 Passed through Massachusetts Department of Early Education and Care: Special Education Preschool Grants (IDEA, Preschool)........…………………………… 84.173 262-292204-2020-0065 - 9,800 TOTAL SPECIAL EDUCATION CLUSTER…………………………………………… - 329,849 OTHER PROGRAMS: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Direct Program: Drug-Free Communities Support Program Grants.........………………………………… 93.276 Not Applicable - 134,482 PASS-THROUGH PROGRAMS: U.S. DEPARTMENT OF TREASURY: Passed through Executive Office of Administration and Finance: Coronavirus Relief Fund….......................................................................................... 21.019 COVID19 065 - 6,229 Coronavirus Relief Fund….......................................................................................... 21.019 COVID19 065 - 211,181 Total Coronavirus Relief Fund…………………………………………………………… - 217,410 U.S. DEPARTMENT OF EDUCATION: Passed through Massachusetts Department of Elementary and Secondary Education: Title I Grants to Local Educational Agencies.........……………………………………… 84.010 305-302333-2020-0065 - 46,203 School Safety National Activities........……………………………………………………… 84.184 FY19 SAFER SCHOOLS QT2 - 34,670 Supporting Effective Instruction State Grants........……………………………………… 84.367 140-302335-2020-0065 - 13,750 Student Support and Academic Enrichment Program…………………………………… 84.424 309-302336-2020-0065 - 10,816 TOTAL EDUCATION……………………………………………………...……………… - 105,439 U.S. DEPARTMENT OF HOMELAND SECURITY: Passed through Massachusetts Emergency Management Agency: Staffing for Adequate Fire and Emergency Response (SAFER).........………………… 97.083 2020 SAFE GRANT - 123,070 Emergency Management Performance Grants.........…………………………………… 97.042 EMPG19 - COHASSET - 2,900 TOTAL HOMELAND SECURITY……………………………………………………… - 125,970 TOTAL…………………………………………………………………………………………… $ - $ 979,055 See notes to Schedule of Expenditures of Federal Awards. Town of Cohasset, Massachusetts 6 Reports on Federal Award Programs Schedule of Findings and Questioned Costs Year Ended June 30, 2020 Town of Cohasset, Massachusetts 7 Report on Federal Award Programs Note 1 – Basis of Presentation Notes to schedule of expenditures of federal awards The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the Town of Cohasset, Massachusetts under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Cohasset, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Cohasset, Massachusetts. Note 2 – Summary of Significant Accounting Policies The accounting and reporting policies of the Town of Cohasset, Massachusetts are set forth below: (a) Basis of Accounting – The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly, expenditures are recognized when the liability is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. (b) Cash Assistance – National School Lunch Program and School Breakfast Program – Program expenditures represent federal reimbursement for meals provided during the year. (c) Non-Cash Assistance (Commodities) – National School Lunch Program – Program expenditures represent the value of donated foods received during the year. (d) COVID-19 funded disaster grants have been recorded the year the expenses were incurred. Other disaster grants have been recorded the year the grant was approved. (e) The Town of Cohasset, Massachusetts has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Schedule of Findings and Questioned Costs Year Ended June 30, 2020 Town of Cohasset, Massachusetts 8 Report on Federal Award Programs A. Summary of Auditor’s Results Schedule of findings and questioned costs 1. The auditor’s report expresses an unmodified opinion on the financial statements of the Town of Cohasset, Massachusetts. 2. No material weaknesses or significant deficiencies relating to the audit of the financial statements are reported in the Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 3. No instances of noncompliance material to the financial statements of the Town of Cohasset, Massachusetts, were disclosed during the audit. 4. No material weaknesses or significant deficiencies relating to the audit of the major federal award programs are reported in the Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance. 5. The auditor’s report on compliance for the major federal award programs for the Town of Cohasset, Massachusetts, expresses an unmodified opinion on all major federal award programs. 6. There were no audit findings relative to the major federal award programs for the Town of Cohasset, Massachusetts. 7. The programs tested as major grants are the Special Education cluster and COVID-19. 8. The threshold for distinguishing Types A and B programs was $750,000. 9. The Town of Cohasset, Massachusetts was determined to not be a low-risk auditee. B. Findings – Financial Statements Audit None C. Findings and Questioned Costs – Major Federal Award Programs None D. Prior Year Findings and Questioned Costs – Major Federal Award Programs None