Canton, Massachusetts · Saved source text
FY17 Single Audit Report
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Source page 1
TOWN OF CANTON, MASSACHUSETTS
SINGLE AUDIT REPORTS
PURSUANT TO THE
UNIFORM GUIDANCE
JUNE 30, 2017Source page 2
TOWN OF CANTON, MASSACHUSETTS
TABLE OF CONTENTS
JUNE 30, 2017
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 the 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 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, 2017, 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 November 21, 2017.
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 of 10 Uniform Guidance Single Audit ReportSource 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. We noted certain other matters that we reported to management of the Town in a separate letter dated November 21, 2017. 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 November 21, 2017 Town of Canton, Massachusetts 2 of 10 Uniform Guidance Single Audit Report
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, 2017.
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.
Opinion on Each Major Federal Programs
In our opinion, 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 each of its
major federal programs for the year ended June 30, 2017.
Town of Canton, Massachusetts 3 of 10 Uniform Guidance Single Audit ReportSource page 6
Town of Canton, Massachusetts Page Two 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. 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, 2017, 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 November 21, 2017, 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 Town of Canton, Massachusetts 4 of 10 Uniform Guidance Single Audit Report
Source page 7
Town of Canton, Massachusetts Page Three 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 November 21, 2017 Town of Canton, Massachusetts 5 of 10 Uniform Guidance Single Audit Report
Source page 8
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2017
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 $ - $ 47,975
National School Lunch Program: 10.555 11-050
Cash Assistance - 305,091
Non-Cash Assistance (Commodities) - 77,868
Total Child Nutrition Cluster - 430,934
U.S. Department of Justice
Direct Award
Federal Equitable Sharing Grant 16.922 - 188,354
Total U.S. Department of Justice Programs - 188,354
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 84.027 240-101155-2017-0050 - 733,110
Special Education - Grants to States 84.027 240-012-6-0050-Q - 50,318
Special Education - Grants to States 84.027 274-095-7-0050-R - 1,920
Total Special Education - Grants to States - 785,348
Special Education - Preschool Grants 84.173 298-891-7-0050-R - 1,400
Passed through the Commonwealth of Massachusetts -
Department of Early Education and Care
Special Education - Preschool Grants 84.173 26217Cantonpublicsch - 30,484
Special Education - Preschool Grants 84.173 26216Cantonpublicsch - 1,123
Total Special Education - Preschool Grants - 31,607
Total Special Education Cluster (IDEA) - 818,355
(continued)
See notes to Schedule of Expenditures of Federal Awards
Town of Canton, Massachusetts 6 of 10 Uniform Guidance Single Audit ReportSource page 9
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2017
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 84.010 305-094029-2017-0050 - 199,741
Title I Grants to Local Educational Agencies 84.010 305-070731-2016-0050 - 13,781
Total Title I Grants to Local Educational Agencies - 213,522
Supporting Effective Instruction State Grant 84.367 140-094140-2017-0050 - 45,399
Supporting Effective Instruction State Grant 84.367 140-075294-2016-0050 - 3,994
Total Supporting Effective Instruction State Grants - 49,393
Passed through the Town of Milton, Massachusetts -
English Language Acquisition Grants 84.365 - 5,283
Total U.S. Department of Education - 1,086,553
U.S. Department of Homeland Security
Direct Award
Homeland Security Grant Program 97.067 - 1,960
Passed through the Commonwealth of Massachusetts -
Massachusetts Emergency Management Agency
Disaster Grants: Public Assistance (Presidentially Declared) 97.036 CT FEMA 4214 - 5,625
Emergency Management Performance Grants 97.042 FY17EMPG16CANTON - 3,025
Total U.S. Department of Homeland Security - 10,610
TOTAL FEDERAL GRANT EXPENDITURES $ - $ 1,716,451
(concluded)
See notes to Schedule of Expenditures of Federal Awards
Town of Canton, Massachusetts 7 of 10 Uniform Guidance Single Audit ReportSource page 10
TOWN OF CANTON, MASSACHUSETTS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2017
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, 2017. 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. Non-Cash Commodities
The Town receives non-cash commodities from the U.S. Department of Agriculture as a part of
the School Lunch program. In fiscal year 2017, $77,868 was received; however, this amount is
not included in the financial statements.
Town of Canton, Massachusetts 8 of 10 Uniform Guidance Single Audit ReportSource page 11
TOWN OF CANTON, MASSACHUSETTS
SCHEDULES OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2017
A. Summary of Audit Results
1. The auditor’s report expresses an unmodified opinion on the financial statements of the Town
of Canton.
2. No significant deficiencies disclosed during the audit of the financial statements are reported
in the 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.
3. No instances of noncompliance material to the financial statements of the Town of Canton
which would be required to be reported in accordance with Government Auditing Standards
were disclosed during the audit.
4. No reportable conditions relating to the audit of the major federal award programs are
reported in the Independent Auditor’s Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required By the Uniform Guidance.
5. The auditor’s report on compliance for the major federal award programs for the Town of
Canton expresses an unmodified opinion.
6. There are no audit findings that are required to be reported in accordance with 2 CFR section
200.516(a) in this Schedule.
7. The program tested as a major program was the Child Nutrition Cluster (CFDA #10.553 &
10.555) grant program.
8. The threshold for distinguishing Types A and B programs was $750,000.
9. The Town of Canton did qualify as a low risk auditee.
B. Schedule of Findings – Financial Statements Audit
None
C. Schedule of Findings and Questioned Costs – Major Federal Award Programs Audit
None
Town of Canton, Massachusetts 9 of 10 Uniform Guidance Single Audit ReportSource page 12
TOWN OF CANTON, MASSACHUSETTS
SCHEDULES OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2017
(Continued)
D. Summary Schedule of Prior Year Audit Findings
Finding 2016-001 - Special Education Cluster
Status: The School implemented procedures to obtain time and effort certifications on a semi-
annual basis. This finding is deemed to be closed.
Town of Canton, Massachusetts 10 of 10 Uniform Guidance Single Audit Report