Town of Hopedale, MassachusettsLocal Government

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.

Finding 2023-002 – 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 Hopedale’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 in regards to expenditures for the Current Period of reporting. The report filed with the U.S. Department of Treasury reported the Total Cumulative Expenditures instead of the Current Period Expenditures. 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 Total Cumulative Expenditures instead of the current period expenditures. Effect: The Town of Hopedale was not in compliance with the U.S. Department of Treasury reporting requirements. Questioned Costs: N/A Cause: Lack of oversight on grant management Identification as a Repeat Finding: Yes, 2022-002 Recommendation: The Town of Hopedale 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: Kelly Grant, Assistant Town Administrator Estimated Completion Date: 11/30/24 Action Taken: All information reported was corrected with the Treasury and there are new procedures in place for documentation and reporting.

Finding 2023-003 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. As governmental subrecipients of states they are also required to use the same state procurement policies and procedures for federal funds as for non‐federal funds, the Town is required to follow Massachusetts General Laws, Chapter (MGL) 30(b). MGL 30(b) requires the solicitation of three written or oral quotes for procurements of supplies between $10,000 and $49,999 and sealed bids or proposals for procurements of supplies $50,000 and over. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. Condition: During fiscal year 2023, the Town could not provide evidence that they complied with the required procurement policies and procedures in place as it related to two of the expenses charged to the major program. Context: The Town purchased a new boiler for the School however the procurement documentation could not be located and the employee who would have overseen the project was unavailable to provide the supporting documentation. In addition, the Town could not locate or provide evidence that procurement procedures were followed when selecting an engineer for the Water Tank project. Questioned Costs: $71,500 related to the School Boiler Project and $170,163.70 related to the Water Tank Project. Cause: Directors used the Massachusetts procurement guidelines and not federal guidelines. Effect or Potential Effect: There is a risk that the amount charged to the federal awards major program may not be in accordance with procurement, suspension, and debarment principles. Identification as a Repeat Finding: N/A Recommendation: The Town of Hopedale should address the noncompliance and material weaknesses in internal controls noted above in order to ensure that procurements are conducted in accordance with federal and state requirements. Responsible for Corrective Plan: Kelly Grant, Assistant Town Administrator Estimated Completion Date: on going as grant and funds are still being used Action Taken: one person only responsible for making sure all federal and state procurement guidelines are met and followed.

June 27, 2022 The Town of Hopedale, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2021. Name and address of independent public accounting firm: Robert E. Brown II, CPA Certified Public Accountant 25 Cemetery Street P.O. Box 230 Mendon, Massachusetts 01756 Audit period: The finding from the June 30, 2021 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 2021-001 ? Assistance to Firefighters - CFDA No. 97.044 Condition: During our testing over compliance, it was noted that the Town did not meet their matching level compliance requirement as it related to the FY 2018 Assistance to Firefighters Grant. Criteria: The Town was required to contribute non-Federal funds equal to or greater than 5% of the Federal funds awarded, or $8,333.34. Context: During our test of compliance as it related to the matching level compliance requirement the Town only contributed $7,443.72 toward the purchase of the portable radios. Effect: The Town was not in compliance with the matching level compliance requirement set forth by the U.S. Department of Homeland Security. Questioned Costs: None Cause: The cost of the item purchased came in less than expected, and only the Town share was reduced. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Town follow procedures to ensure that the proper matching level compliance requirement is met as set forth by U.S. Department of Homeland Security. Responsible for Corrective Plan: Thomas Daige, Fire Department Chief, Diana Schindler, Town Administrator and Laurie Bartkus, Town Accountant Estimated Completion Date: June 27, 2022 Action Taken: Review all federal grants for Town share requirements to ensure that the amounts expended match the grant requirements.