HomeMy WebLinkAboutAuditors Reports - 1988KPMG Peat Marwick
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MANSKELD, MA 0201$
Certified Public Accountants
TOWN OF MANSFIELD, MASSACHUSETTS
Schedule of Federal Financial Assistance
and Independent Auditors' Reports Required under the
Single Audit Act of 1984
Year Ended June 30, 1988
TOWN OF MANSFIELD, MASSACHUSETTS
Schedule of Federal Financial Assistance
and Auditors' Reports Required under the
Single Audit Act of 1984
Year Ended June 30, 1988
Table of Contents
Independent Auditors' Report on Schedule of Federal
Financial Assistance Exhibit I
Schedule of Federal Financial Assistance Exhibit II
Independent Auditors' Report Based on Compliance at the
General Purpose Financial Statement Level Exhibit III
Independent Auditors' Report on Compliance with Laws
and Regulations Related to Major and Nonmajor Federal
Financial Assistance Programs Exhibit IV
Combined Independent Auditors' Report on Internal
Accounting and Administrative Controls at the
General Purpose Financial Statement Level and
the Federal Financial Assistance Program Level Exhibit V
Status of Prior Year Findings Exhibit VI
r_. i -177
KPMG Peat Marwick
Certified Public Accountants
Peat Marwick Main & Co.
One Boston Place Telephone 617 723 7700
Boston, MA02108 Telex 617 443 0082 PMMBOST
Pvhihit T
Telecopier 617 723 6864
INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
The Board of Selectmen
Town of Mansfield, Massachusetts:
We have audited the general purpose financial statements of the Town of
Mansfield, Massachusetts, for the year ended June 30, 1988, and have issued
our report thereon dated June 30, 1989. These general purpose financial
statements are the responsibility of the Town's management. Our
responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and the standards for financial audits contained in the Standards
for Audit of Governmental Organizations Programs Activities and Functions,
issued by the U.S. General Accounting Office. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
general purpose financial statements are free of material misstatement and
whether management has complied with laws and regulations and has established
and maintained a system of internal controls. An audit in accordance with
these standards includes examining, on a test basis, evidence supporting the
amounts and disclosures in the general purpose financial statements and
compliance with laws and regulations. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
Our audit was made for the purpose of forming an opinion on the general
purpose financial statements of the Town of Mansfield, Massachusetts, taken as
a whole. The supplementary information included in the accompanying schedule
of federal financial assistance is presented for purposes of additional
analysis and is not a required part of the general purpose financial
statements. Such supplementary information has been subjected to the auditing
procedures applied in the audit of the general purpose financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the general purpose financial statements taken as a whole.
June 30, 1989
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Member Firm of
Klvnveitl Peal Marwick Goertleler
TOWN OF !tANSF.ELD, MASSACHUSETTS
Schedule of Federal Financial Assistance
Year ended June 30, 1988
.ederal
Federal Grantor/Pass-Through Grantor/ CFDA
Program Title Number Exoendi=ur=_s
U.S. Department of the Treasury
State and Local Government Fiscal
Assistance - General Revenue Sharing 21.300 i 78,=31
T.S. Department of Agriculture
?ass -through State Department of Education:
School Lunch program 10.333 261,637
U.S. Department of Education
Pass -through State Department of Education:
ECIA Chapter I 34.010 62,629
Proiect Assistance VIII 84.027 40,362
- Speech/Language Assist II 84.027 12,429
ECIA Chapter 2 84.131 9,197
Early Childhood Allocation Program 34.027 14,679
)lath/Science Title II 84.164 430
Computer Assistance Instruction for
Special Education Students 84.027 .2'-8
Total U.S. Department of Education 1432094
U.S. Deoartme.^.t of Transoortation
Airport Development Aid Program:
`?aster Plan 20.102 132630
Environmental Protection Agency
* Construction Reimbursement - 'Wastewater
Treatment Plant 66.419 349,S93
Total federal financial assistance $ 1.030.703
*Indicates major program.
See accompanying notes to schedule of federal financial assistance.
Exhibit II
(Continued)
TOWN OF MANSFIELD, MASSACHUSETTS
Notes to Schedule of Federal Financial Assistance
Year ended June 30, 1988
(1) Definition of Reporting Entity
The accompanying schedule of federal financial assistance presents the
activity of all federal financial assistance programs of the Town of
Mansfield, Massachusetts. All federal financial assistance received
directly from federal agencies as well as federal financial assistance
passed through other government agencies is included on the schedule.
(2) Summary of Significant Accounting Policies
The accounting and reporting policies of the Town of Mansfield,
Massachusetts, are set forth below:
(a) Basis of Presentation
The accompanying schedule of federal financial assistance is presented
using the modified accrual basis of accounting.
(b) School Lunch Program
Program expenditures for the School Lunch program represent federal
reimbursement for meals provided during the year.
(c) Food Distribution Program
Non —cash contributions of commodities under the Food Distribution program
are received under a State distribution formula and are valued at
federally published wholesale prices for purposes of this schedule.
II — 2
Exhibit III
KPMG Peat Marwick
Certified Public Accountants
Peat Marwick Main & Co.
One Boston Place Telephone 617 723 7700 Telecopier 617 723 6864
Boston, MA 02108 Telex 617 443 0082 PMMBOST
The Board of Selectmen
Town of Mansfield, Massachusetts:
We have audited the general purpose financial statements of the Town of
Mansfield, Massachusetts, for the year ended June 30, 1988, and have issued
our report thereon dated June 30, 1989. These general purpose financial
statements are the responsibility of the Town's management. Our
responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and the standards for financial audits contained in the Standards
for Audit of Governmental Organizations Programs, Activities and Functions,
issued by the U.S. General Accounting Office. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
general purpose financial statements are free of material misstatement and
whether management has complied with laws and regulations and has established
and maintained a system of internal controls. An audit in accordance with
these standards includes examining, on a test basis, evidence supporting the
amounts and disclosures in the general purpose financial statements and
compliance with laws and regulations. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
The management of the Town of Mansfield, Massachusetts, is responsible for the
Town's compliance with laws and regulations. In connection with the audit
referred to above, we selected and tested transactions and records to
determine the Town's compliance with those laws and regulations for which
noncompliance could have a material effect on the Town's general purpose
financial statements.
Member Firmol
Klynveld Peal Marwick Goerdeler
.y7, ?1F="." Exhibit III
KPMG Peat Marwick (Continued)
The Board of Selectmen
Town of Mansfield, Massachusetts
Page Two
The results of our tests indicate that for the transactions and records tested
the Town of Mansfield, Massachusetts, complied with those laws and regulations
for which noncompliance could have a material effect on the Town's general
purpose financial statements. With respect to the transactions and records
that were not tested by us, nothing came to our attention to indicate that the
Town of Mansfield, Massachusetts, had not complied with laws and regulations.
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June 30, 1989
III — 2
KPMG Peat Marwick
Exhibit 1V
Certified Public Accountants
Peat Marwick Main & Co.
One Boston Place Telephone 617 723 7700
Boston, MA 02108 Telex 617 443 0082 PMMBOST
Telecopier 617 723 6864
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH LAWS AND
REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL
FINANCIAL ASSISTANCE PROGRAMS
The Board of Selectmen
Town of Mansfield, Massachusetts:
We have audited the general purpose financial statements of the Town. of
Mansfield, Massachusetts, for the year ended June 30, 1988, and have issued
our report thereon dated June 30, 1989. These general purpose financial
statements are the responsibility of the Town's management. Our
responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and the standards for financial audits contained in the Standards
for Audit of Governmental Organizations, Programs Activities and Functions,
issued by the J.S. General_ Accounting Office; the Single Audit Act of 1984;
and the provisions of OMB Circular A-128, Audits of State and Local
Governments. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the general purpose financial
statements are free of material misstatement and whether management has
complied with laws and regulations and has established and maintained a system
of internal controls. An audit in accordance with these standards includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the general purpose financial statements and compliance with laws and
regulations. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
The management of the Town of Mansfield, Massachusetts, is also responsible
for the 'own's compliance with laws and regulations. In connection with the
audit .referred to above, we selected and tested transactions and records from
the major federal financial assistance program and certain nonmajor federal
financial assistance programs. The purpose of our testing of transactions and
records from those federal financial assistance programs was to obtain
reasonable assurance that the Town of Mansfield, Massachusetts, had, in all
material respects, administered its major program and executed the tested
nonmajor program transactions in compliance with those laws and regulac`_o^.s
for which noncompliance could have a material effect on the aliowability of
program expenditures. Such laws and regulations include those pertaining to
federal financial reports and claims for advances and reimbursements.
F 'f; IV - 1
I i,t Member Firm of
.I KlynvelA Peal Marwick Goertleler
Exhibit 1V
(Continued)
KPMG Peat Marwick
The Board of Selectmen
Town of Marsfield, Massachusetts
Page Two
Our testing of transactions and records selected from the major federai
financial assistance program disclosed no instances or noncompliance with
certain laws and regulations.
In our opinion, the Town of Mansfield, Massachusetts, administered its major
federal financial assistance program in compliance, in all material respects,
with those 'Laws and regulations for which noncompliance could have a material
effect on the allowabiiicy of program expenditures for the year ended June 30,
1988.
The results of our testing of transactions and records selected from nonmajor
federal financial assistance programs indicate chat for the transactions and
records tested the Town of Mansfield. Massachusetts, complied with the laws
and regulations referred to in the third paragraph of our report. Our testing
was more 'limited than would be necessary to express an opinion on whether the
Town of Mansfield, Massachusetts, administered those programs in compliance,
in all material respects, with those laws and regulations for which
noncompliance could have a material effect on the allowability of program
expenditures. With respect to the transactions and records that were not
tested by us, nothing came to our attention to indicate that the Town of
Mansfield, Massachusetts, had not complied with laws and regulations.
fc4)� A""' 4 (.tr ' ;
June 30, 1989
IV- 2
KPMG Peat Marwick
Exhibit V
Certified Public Accountants
Peat Marwick Main & Co.
One Boston Place Telephone 617 723 7700
Boston, MA 02108 Telex 617 443 0082 PMMBOST
Telecopier 617 723 6864
COMBINED INDEPENDENT AUDITORS' REPORT ON INTERNAL ACCOUNTING AND
ADMINISTRATIVE CONTROLS AT THE GENERAL PURPOSE FINANCIAL STATEMENT LEVEL
AND THE FEDERAL FINANCIAL ASSISTANCE PROGRAM LEVEL
The Board of Selectmen
Town of Mansfield, Massachusetts:
We have audited the general purpose financial statements of the Town of
Mansfield, Massachusetts, for the year ended June 30, 1988, and have issued
our report thereon dated June 30, 1989. These general purpose financial
statements are the responsibility of the Town's management. Our
responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and the standards for financial audits contained in the Standards
for Audit of Governmental Organizations, Programs, Activities, and Functions,
issued by the U.S. General Accounting Office; the Single Audit Act of 1984;
and the provisions of OMB Circular A-128, Audits of State and Local
Governments. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether 'the general purpose financial
statements are free of material misstatement and whether management has
complied with laws and regulations and has established and maintained a system
of internal controls. An audit in accordance with these standards includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the general purpose financial statements and compliance with laws and
regulations. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
For purposes of this report, we have classified the significant internal
accounting and administrative controls in the following categories:
• Accounting Controls:
- Revenue/receipts
- Purchasing/disbursements
- Payroll
V - 1
Member Firmol
Klvn Id Pr.I M.—i,k Rnmdnl>
I_ I , Exhibit V
KPMG Peat Marwick (Continued)
The Board of Selectmen
Town of Mansfield, Massachusetts
Page Two
• Administrative Controls:
General Requirements:
- Political Activity
- Davis Bacon Act
- Civil Rights
- Cash Management
- Federal Financial Reports
Specific Requirements:
- Types of Services
- Eligibility of Costs
- Matching Level of Efforts
- Reporting
- Special Requirements
Our study and evaluation included all the control categories listed above.
The management of the Town of Mansfield, Massachusetts, is responsible for
establishing and maintaining the internal control systems. In fulfilling that
responsibility, estimates and judgments by management are required to assess
the expected benefits and related costs of control procedures. The objectives
of internal control systems are to provide management with reasonable, but not
absolute, assurance that, with respect to federal financial assistance
programs, resource use is consistent with :laws, regulations, and policies;
resources are safeguarded against waste, loss, and misuse; transactions are
executed in accordance with management's authorization; and that data is
obtained, recorded and maintained properly to permit the preparation of
financial statements in accordance with generally accepted accounting
principles and the preparation of federal reports in accordance with federal
requirements.
Because of inherent limitations in any system of internal accounting control,
errors or irregularities may nevertheless occur and not be detected. Also,
projection of any evaluation of the system to future periods is subject to the
risk that procedures may become inadequate because of changes in conditions or
that the degree of compliance with the procedures may deteriorate.
V - 2
KPMG Peat Marwick
The Board of Selectmen
Town of Mansfield, Massachusetts
Page Three
Exhibit V
(Continued)
During the year ended June 30, 1988, the Town expended 53% of its total
federal financial assistance under major federal financial assistance
programs. With respect to internal control systems used in administering
major federal financial assistance programs, our study and evaluation included
considering the types of errors and irregularities that could occur,
determining the internal control procedures that should prevent or detect such
errors and irregularities, determining whether necessary procedures are
prescribed and are being followed satisfactorily, and evaluating any
weaknesses.
With respect to the internal control systems used in administering the
nonmajor federal financial assistance programs of the Town of Mansfield,
Massachusetts, our study and evaluation was limited to a preliminary review of
the systems to obtain an understanding of the control environment and the flow
of transactions through the accounting system. Accordingly, our audit would
not necessarily disclose material weaknesses in the internal control systems
used in'administering nonmajor federal financial assistance programs.
Our study and evaluation described above was more limited than would be
necessary to express an opinion on the internal control systems of the Town of
Mansfield, Massachusetts. Accordingly, we do not express an opinion on the
internal control systems of the Town of Mansfield, Massachusetts, taken as a
whole, or on any of the control categories identified above.
However, our study and evaluation and our audit disclosed no condition that we
believe to be a material weakness in relation to the general purpose financial
statements or any of the federal financial assistance programs of the Town of
Mansfield, Massachusetts. However, in our letter to management dated May 16,
1989, we have separately communicated our observations and recommendations
regarding certain other matters of a nonmaterial nature.
This report is intended solely for the use of management and federal and state
agencies that have provided federal financial assistance to the Town of
Mansfield, Massachusetts, and should not be used for any other purpose. This
restriction is not intended to limit the distribution of this report which,
upon acceptance by the Town of Mansfield, Massachusetts, is a matter of public
record.
June 30, 1989
V — 3
Exhibit VI
STATUS OF PRIOR YEAR FINDINGS
The findings noted in the June 30, 1987 and June 30, 1986 single audit reports
have been submitted to the applicable federal and state agencies along with
the Town's corrective action plan. As of June 30, 1989, the Town has not
received clearance letters from any of the respective agencies.
VI-1