TOWN OF WESTPORTLocal Government

2025-001 U.S. Department of the Treasury Direct Award and Passed through Bristol County, Massachusetts COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Significant Deficiency in Internal Controls over Compliance and Compliance Finding Criteria: The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Per 2 CFR 200.1, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment. Condition: Expenditures were not reconciled to the general ledger for reporting submitted to the U.S. Department of the Treasury and Bristol County, Massachusetts. Cause: The Town did not have procedures in place to perform reconciliations of required grant reporting. Effect: The Town potentially overstated expenditures by approximately $528,000 and $127,000 in reporting submitted to the U.S. Department of the Treasury and Bristol County, Massachusetts, respectively. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to reconcile all federal reporting to the general ledger. Views of Responsible Official: Management agrees with the finding.

2023-001 U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Criteria: The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Per 2 CFR 200.1, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment. Condition: Obligations were overstated by approximately $800,000 on the March 31, 2023 Project and Expenditure report. Cause: The Town did not have a clear understanding of the reporting requirements for obligations and reported the entire grant award as obligated. Effect: The Town did not properly report amounts obligated in the March 31, 2023 Project and Expenditure report. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The Town should implement procedures to only report obligations on the Project and Expenditure reporting for items that meet the federal criteria for reporting as an obligation. Views of Responsible Official: Management agrees with the finding.

Criteria: Per 2 CFR section 200.430(i) of the Uniform Guidance, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Semiannual or monthly time and effort certifications are to be utilized if the non-federal entity?s records do not meet the related standards described in the Uniform Guidance. Condition: Time and effort certifications were not maintained for grant employees? whose salaries and wages were not supported by detailed time records for the period March 2020 through June 2020. Cause: The School did not maintain proper payroll records. Effect: The School is not in compliance with applicable cost principles related to salaries and wages. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to obtain time and effort certifications from grant employees whose wages are not supported with detailed time records. Time and effort certifications should be obtained on a semi-annual basis for employees whose work is solely for a single grant and on a monthly basis for employees whose work involves more than one grant or activity. Views of Responsible Officials: Management agrees with the finding.