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Fiscal Year 2019 Single Audit Report
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Certified Public Accountants
TOWN OF CANTON, MASSACHUSETTS
FEDERAL AWARD REPORTS
PURSUANT TO THE
UNIFORM GUIDANCE
YEAR ENDED JUNE 30, 2019
[Original embedded text, retained for comparison]
TOWN OF CANTON, MASSACHUSETTS
FEDERAL AWARD REPORTS
PURSUANT TO THE
UNIFORM GUIDANCE
YEAR ENDED JUNE 30, 2019Source page 2
TOWN OF CANTON, MASSACHUSETTS
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2019
Page
Independent Auditor’s 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 ...................................... 1-2
Independent Auditor’s Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by Uniform Guidance ................................. 3-5
Schedule of Expenditures of Federal Awards .......................................................................... 6-7
Notes to Schedule of Expenditures of Federal Awards .............................................................. 8
Schedules of Findings and Questioned Costs .......................................................................... 9-10Source page 3
INDEPENDENT AUDITOR’S 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
To the Honorable Board of Selectmen
Town of Canton, 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
Canton, Massachusetts, as of and for the year ended June 30, 2019, and the related notes to the financial
statements, which collectively comprise the Town of Canton, Massachusetts’s basic financial statements and
have issued our report thereon dated December 15, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town’s 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’s internal control. Accordingly, we do not express
an opinion on the effectiveness of the Town’s 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.
Town of Canton, Massachusetts 1 Federal Award ReportsSource page 4
Town of Canton, Massachusetts Page Two Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town’s 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. 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. Roselli, Clark and Associates Certified Public Accountants Woburn, Massachusetts December 15, 2019 Town of Canton, Massachusetts 2 Federal Award Reports
Source page 5
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
THE UNIFORM GUIDANCE
To the Honorable Board of Selectmen
Town of Canton, Massachusetts
Report on Compliance for Each Major Federal Program
We have audited the Town of Canton, 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 Canton, Massachusetts’ major federal programs for the year ended June 30, 2019.
The Town of Canton, 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 Canton, 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 Canton, 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 Canton,
Massachusetts’ compliance.
Basis for Qualified Opinion on Special Education Cluster
As described in the accompanying schedule findings and questioned costs, the Town of Canton,
Massachusetts did not comply with requirements regarding period of performance applicable to its CFDA
84.027/84.173 SPED Cluster grant as described in finding number 2019-001. Compliance with such
requirements is necessary, in our opinion, for the Town of Canton, Massachusetts to comply with the
requirements applicable to that program.
Town of Canton, Massachusetts 3 Federal Award ReportsSource page 6
Town of Canton, Massachusetts Page Two Qualified Opinion on Special Education Cluster In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the Town of Canton, Massachusetts complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on the 84.027/84.173 SPED Cluster grant for the year ended June 30, 2019. Other Matters The Town of Canton, Massachusetts’ response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The Town’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control Over Compliance Management of the Town of Canton, 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 Canton, 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 Canton, 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 efficiencies. 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Town of Canton, Massachusetts 4 Federal Award Reports
Source page 7
Town of Canton, Massachusetts Page Three 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 Canton, Massachusetts, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the Town of Canton, Massachusetts’s basic financial statements. We have issued our report thereon dated December 15, 2019, 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 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. Roselli, Clark & Associates Certified Public Accountants Woburn, Massachusetts December 15, 2019 Town of Canton, Massachusetts 5 Federal Award Reports
Source page 8
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2019
Federal Grantor / Passed
Pass-Through Grantor / CFDA Pass-Through Through to Federal
Program Title Number Number Subrecipients Expenditures
U.S. Department of Agriculture
Child Nutrition Cluster
Passed through the Commonwealth of Massachusetts -
Department of Elementary and Secondary Education
School Breakfast Program 10.553 11-050 $ - $ 44,893
National School Lunch Program: 10.555 11-050
Cash Assistance - 87,098
Non-Cash Assistance (Commodities) - 306,016
Total National School Lunch Program - 393,114
Total Child Nutrition Cluster - 438,007
U.S. Department of Justice
Direct Award
Federal Equitable Sharing Grant 16.922 - 269,310
Total U.S. Department of Justice Programs - 269,310
U.S. Department of Education
Special Education Cluster (IDEA)
Passed through the Commonwealth of Massachusetts -
Department of Elementary and Secondary Education
Special Education - Grants to States 84.027 240-209091-2019-0050 - 838,405
Special Education - Grants to States 84.027 240-144732-2018-0050 - 17,116
Total Special Education - Grants to States - 855,521
Special Education - Preschool Grants 84.173 262-209092-2019-0050 - 29,957
Total Special Education - Preschool Grants - 29,957
Total Special Education Cluster (IDEA) - 885,478
(continued)
See notes to Schedule of Expenditures of Federal Awards
Town of Canton, Massachusetts 6 Federal Award ReportsSource page 9
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2019
Federal Grantor / Passed
Pass-Through Grantor / CFDA Pass-Through Through to Federal
Program Title Number Number Subrecipients Expenditures
Passed through the Commonwealth of Massachusetts -
Department of Elementary and Secondary Education
Title I Grants to Local Educational Agencies 84.010 305-208880-2019-0050 - 56,646
Title I Grants to Local Educational Agencies 84.010 305-139947-2018-0050 - 48,422
Total Title I Grants to Local Educational Agencies - 105,068
Supporting Effective Instruction State Grant 84.367 140-208879-2019-0050 - 47,267
Supporting Effective Instruction State Grant 84.367 140-139967-2018-0050 - 3,439
Total Supporting Effective Instruction State Grants - 50,706
Student Support and Academic Enrichment Grants 84.424 309-208881-2019-0050 - 8,681
Student Support and Academic Enrichment Grants 84.424 309-139968-2018-0050 - 366
Total Student Support and Academic Enrichment Grants - 9,047
Total U.S. Department of Education - 1,050,299
U.S. Department of Homeland Security
Direct Award
Homeland Security Grant Program 97.067 - 10,834
Passed through the Commonwealth of Massachusetts -
Massachusetts Emergency Management Agency
Emergency Management Performance Grants 97.042 FY19EMPG1800000CANTO - 3,382
Emergency Management Performance Grants 97.042 FY19CCP1700000CANTO - 3,444
Total Emergency Management Performance Grants - 6,826
Total U.S. Department of Homeland Security - 17,660
TOTAL FEDERAL GRANT EXPENDITURES $ - $ 1,775,276
(concluded)
See notes to Schedule of Expenditures of Federal Awards
Town of Canton, Massachusetts 7 Federal Award ReportsSource page 10
TOWN OF CANTON, MASSACHUSETTS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2019
A. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal
award activity of the Town of Canton, Massachusetts (the Town) under programs of the federal
government for the year ended June 30, 2019. 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 Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Because the Schedule presents only a selected portion of the operations of
the Town, it is not intended to and does not present the financial position, changes in net position,
or cash flows of the Town.
B. Summary of Significant Accounting Policies
Accounting policies and financial reporting practices permitted for municipalities in
Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS)
promulgated by the Commonwealth of Massachusetts Department of Revenue.
The accompanying Schedule includes the federal grant transactions of the Town, although some
of these programs may be supplemented with state and other revenue, only federal activity is
shown. Expenditures reported on the Schedule are reported on the modified accrual basis of
accounting. Such expenditures are recognized following the cost principles contained in the
Uniform Guidance.
The Town has elected not to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance.
C. U.S Department of Agriculture Programs
The Town receives non-cash commodities from the U.S. Department of Agriculture as a part of
the National School Lunch program. The amounts reported as non-cash assistance represent the
fair market value of these commodities received during the year.
The amounts reported as cash assistance represent federal reimbursements for meals provided.
Town of Canton, Massachusetts 8 Federal Award ReportsSource page 11
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2019
A. Summary of Audit Results
FINANCIAL STATEMENTS
Type of auditor’s report issued Unmodified
Internal control over financial reporting:
Material weaknesses identified No
Significant deficiencies identified not considered
to be material weaknesses No
Noncompliance material to financial statements noted? No
FEDERAL AWARDS
Internal control over major programs:
Material weaknesses identified No
Significant deficiencies identified not considered
to be material weaknesses No
Type of auditor’s report issued on compliance for
major programs Qualified
Any audit findings disclosed that are required to be reported
in accordance with Uniform Guidance 2 CFR 200.516 Yes
IDENTIFICATION OF MAJOR PROGRAMS
Name of Federal Program CFDA Number(s)
Special Education Cluster 84.027 & 84.173
Dollar threshold used to distinguish between type A and
type B programs $ 750,000
Auditee qualified as a low-risk auditee? Yes
B. Financial Statement Findings
None
Town of Canton, Massachusetts 9 Federal Award ReportsSource page 12
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2019
(Continued)
C. Federal Award Findings and Questioned Costs
2019-001 U.S. Department of Education
Passed-through the Commonwealth of Massachusetts Department of
Elementary and Secondary Education
Special Education Cluster – CFDA 84.027 & 84.173
Criteria: Grant funds may only be obligated upon the date of approval by the awarding agency
through the end of the grant period.
Condition: Tuition invoices were charged to the grant with service dates prior to the award
approval date by the pass-through agency.
Cause: The grant award date was later than in past years due to changes in the application
process. Tuition invoices journaled into the grant fund were not compared against the award
date.
Effect: The Town expended funds outside of the period of performance which resulted in
questioned costs.
Questioned Costs: $142,315.29 of identified costs outside of the period of performance
Repeat Finding from Prior Year: No
Recommendation: The School should implement procedures to properly monitor award approval
dates to ensure that goods and services charged to federal grants occur during the period of
performance.
Views of Responsible Official: Management agrees with the finding.
Town of Canton, Massachusetts 10 Federal Award ReportsSource page 13
CANTON PUBLIC SCHOOLS
Dr. Jennifer Fischer-Mueller Patricia Kinsella
Superintendent of Schools Assistant Superintendent
Debra L. Bromfield 960 Washington Street, Canton, MA 02021 Barry S. Nectow
Director of Student Services Telephone: 781-821-5060 School Business Administrator
Fax: 781-575-6500
www.cantonma.org
To develop students who are competent and creative thinkers, curious and confident learners, and compassionate citizens.
Corrective Action Plan
Finding 2019-001
Condition: Tuition invoices were charged to the grant with service dates prior to the award approval date by the
pass-through agency.
Corrective Action Planned: The Distict has reviewed all invoices that have been charged to date to the FY20
grant to ensure the correct performance period and will continue to do so for the remainder of the year.
Anticipated Completion Date: Fiscal year 2020
Contact: Barry S. Nectow, School Business Administrator
The Canton Public Schools does not discriminate on the basis of race, color, religion,
national origin, sex, gender identity, sexual orientation, age, disability or homelessness.
Equal Opportunity Employer (EOE)