HomeMy Public PortalAboutBrewster 2012 - Auditor's Report as Required by OMB Circular A-133 June 30 2012
TOWN OF BREWSTER, MASSACHUSETTS
INDEPENDENT AUDITORS’ REPORT AS
REQUIRED BY OMB CIRCULAR A-133
AND GOVERNMENT AUDITING STANDARDS
AND RELATED INFORMATION
FOR THE YEAR ENDED JUNE 30, 2012
TOWN OF BREWSTER, MASSACHUSETTS
INDEPENDENT AUDITORS’ REPORT AS REQUIRED BY OMB CIRCULAR A-133
AND GOVERNMENT AUDITING STANDARDS AND RELATED INFORMATION
FOR THE YEAR ENDED JUNE 30, 2012
INDEX
PAGE
Report on Compliance with Requirements That Could Have a Direct and Material
Effect on Each Major Program and on Internal Control Over Compliance in
Accordance with OMB Circular A-133
1 – 2
Schedule of Expenditures of Federal Awards 3
Notes to Schedule of Expenditures of Federal Awards 4
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
5 – 6
Schedule of Findings and Questioned Costs 7
R. E. BROWN & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
25 CEMETERY STREET – P.O. Box 230
Mendon, Massachusetts 01756
Phone: (508) 478-3941 Fax: (508) 478-1779
REPORT ON COMPLIANCE WITH REQUIREMENTS
THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
IN ACCORDANCE WITH OMB CIRCULAR A-133
To the Honorable Board of Selectmen
Town of Brewster, Massachusetts
Compliance
We have audited the Town of Brewster, Massachusetts’ compliance with the types of compliance requirements
described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each
of the Town of Brewster, Massachusetts’ major federal programs for the year ended June 30, 2012. The Town of
Brewster, Massachusetts’ major federal programs are identified in the summary of auditor’s results section of the
accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations,
contracts, and grants applicable to each of its major federal programs is the responsibility of the Town of
Brewster, Massachusetts’ management. Our responsibility is to express an opinion on the Town of Brewster,
Massachusetts’ compliance based on our audit.
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 OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 Brewster, 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. Our audit does not provide a legal
determination of the Town of Brewster, Massachusetts’ compliance with those requirements.
In our opinion, the Town of Brewster, Massachusetts complied, in all material respects, with the 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, 2012.
Internal Control Over Compliance
Management of the Town of Brewster, Massachusetts is responsible for establishing and maintaining effective
internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to
federal programs. In planning and performing our audit, we considered the Town of Brewster, Massachusetts’
internal control over compliance with the requirements that could have a direct and material effect on a major
federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance
and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 Brewster, 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.
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
deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses, as defined above.
Schedule of Expenditures of Federal Awards
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 Brewster, Massachusetts as of and for the
year ended June 30, 2012, and have issued our report thereon dated March 21, 2013, which contained an
unqualified opinion on those financial statements. Our audit was conducted for the purpose of forming our
opinions on the financial statements that collectively comprise the Town of Brewster, Massachusetts’ financial
statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by OMB Circular A-133 and is not a required part of the 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 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 financial statements or to the 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 financial
statements as a whole.
This report is intended solely for the information and use of management, the Board of Selectmen, others within
the entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used
by anyone other than these specified parties.
R. E. Brown & Company
March 21, 2013
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TOWN OF BREWSTER, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2012
GRANTOR/
PASS-THROUGH
FEDERAL ENTITY
PROGRAM GRANTOR/PASS-THOUGH GRANTOR/PROGRAM OR CFDA IDENTIFYING FEDERAL
CLUSTER TITLE NUMBER NUMBER EXPENDITURES
U.S. DEPARTMENT OF EDUCATION
PASS-THROUGH PROGRAMS FROM: MASSACHUSETTS EXECUTIVE OFFICE OF EDUCATION -
DEPARTMENT OF ELEMENTARY AND SECONDARY EDUCATION
CIRCUIT BREAKER SUPPLEMENTAL 84.027A 694$
CIRCUIT BREAKER 2ND SUPPLEMENTAL 84.027A 116
ARRA - SPECIAL EDUCATION GRANTS TO STATES: FY 2011 84.391 760-294-1-0041-L 7,272
ARRA - STATE FISCAL STABILIZATION FUNDS, EDUCATION STATE GRANTS: FY 2011 84.394 780-366-1-0041-L 1,160
ARRA - STATE FISCAL STABILIZATION FUNDS, RACE-TO-THE-TOP INCENTIVE GRANTS: FY 2011 84.395 201-333-1-0041-L 495
ARRA - STATE FISCAL STABILIZATION FUNDS, RACE-TO-THE-TOP INCENTIVE GRANTS: FY 2012 84.395 201-004-2-0041-M 4,165
EDUCATION JOBS FUND: FY 2011 84.410 206-182-1-0041-L 9,065
EDUCATION JOBS FUND: FY 2012 84.410 206-292-2-0041-M 1,418
TOTAL U.S DEPARTMENT OF EDUCATION 24,385
U.S. DEPARTMENT OF AGRICULTURE
DIRECT PROGRAMS:
WATERSHED PROTECTION & FLOOD PREVENTION - FREEMAN'S POND 10.904 BR-SM-4 13,215
WATERSHED PROTECTION & FLOOD PREVENTION - SAINT'S LANDING 10.904 BR-SW-2010-1 4,492
WATERSHED PROTECTION & FLOOD PREVENTION - PAINE'S CREEK 10.904 BR-SW-2010-2 27,588
TOTAL DIRECT PROGRAMS:45,295
PASS-THROUGH PROGRAMS FROM: MASSACHUSETTS EXECUTIVE OFFICE OF EDUCATION -
DEPARTMENT OF ELEMENTARY AND SECONDARY EDUCATION: BUREAU OF NUTRITION
SCHOOL BREAKFAST PROGRAM 10.553 01-141 5,051
NATIONAL SCHOOL LUNCH PROGRAM 10.555 01-141 53,616
TOTAL PASS-THROUGH PROGRAMS FROM: MASSACHUSETTS EXECUTIVE OFFICE OF EDUCATION
DEPARTMENT OF ELEMENTARY AND SECONDARY EDUCATION: BUREAU OF NUTRITION 58,667
TOTAL U.S. DEPARTMENT OF AGRICULTURE 103,962
U.S. DEPARTMENT OF COMMERCE
DIRECT PROGRAM - NATIONAL OCEANIC & ATMOSPHERIC ADMINISTRATION
ARRA - HABITAT CONSERVATION 11.463 NA09NMF4630301 138,525
TOTAL U.S. DEPARTMENT OF COMMERCE 138,525
U.S. DEPARTMENT OF HOMELAND SECURITY
DIRECT PROGRAM FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY
ASSISTANCE TO FIREFIGHTERS GRANT 97.044 348,736
TOTAL DIRECT PROGRAM FROM: FEDERAL EMERGENCY MANAGEMENT AGENCY 348,736
PASS-THROUGH PROGRAMS FROM: MASSACHUSETTS EMERGENCY MANAGEMENT AGENCY
DISASTER GRANT - PUBLIC ASSISTANCE 97.036 38,572
TOTAL PASS-THROUGH PROGRAM FROM: MASSACHUSETTS EMERGENCY MANAGEMENT AGENCY 38,572
TOTAL U.S DEPARTMENT OF HOMELAND SECURITY 387,308
TOTAL EXPENDITURES OF FEDERAL AWARDS 654,180$
SEE ACCOMPANYING NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2012
I. 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 significant accounting policies followed by the Town are as follows:
A. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant transactions of
the Town. The receipts and proceeds from Federal grants are recorded on the modified accrual basis
whereby revenue is recognized when it becomes available and measurable. Disbursements of Federal grant
funds are recorded on the accrual basis.
II. SCOPE OF AUDIT
The Town of Brewster, Massachusetts (the Town) is a governmental agency established by the laws of the
Commonwealth of Massachusetts. All operations related to the Town's Federal grant programs, (the Department
of Agriculture, Department of Education, Department of Homeland Security, and Department of Commerce), are
included in the scope of the OMB Circular A-133 Audit Requirements for audits of state and local governments
(the Single Audit). The U.S. Department of Homeland Security has been designated as the Town's oversight
agency for the Single Audit.
III. PERIOD AUDITED
Single audit testing procedures were performed for Town Federal grant transactions during the year ended June
30, 2012.
IV. SCHOOL LUNCH PROGRAM
The Town accounts for local, state and federal expenditures of the National School Lunch and School Breakfast
programs in one combined fund. Program expenditures in the accompanying Schedule of Expenditures of Federal
Awards represent federal reimbursements for meals provided during fiscal 2012. 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.
V. SUBRECIPIENTS
The Town of Brewster, Massachusetts passed no federal awards through to sub-recipients during the period under
audit.
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R. E. BROWN & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
25 CEMETERY STREET – P.O. Box 230
Mendon, Massachusetts 01756
Phone: (508) 478-3941 Fax: (508) 478-1779
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 Brewster, Massachusetts
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 Brewster, Massachusetts, as of and for the
year ended June 30, 2012, which collectively comprise the Town of Brewster, Massachusetts’ basic financial
statements and have issued our report thereon dated March 21, 2013. We conducted our audit 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.
Internal Control Over Financial Reporting
Management of the Town of Brewster, Massachusetts is responsible for establishing and maintaining effective
internal control over financial reporting. In planning and performing our audit, we considered the Town of
Brewster, Massachusetts’ internal control over financial reporting as a basis for designing our auditing procedures
for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Town of Brewster, Massachusetts’ internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the Town of Brewster, Massachusetts’ internal
control over financial reporting.
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 combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the Town of Brewster,
Massachusetts’ financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting 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 financial
reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined
above.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Brewster, Massachusetts’ financial
statements are free of 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.
This report is intended solely for the information and use of management, the Board of Selectmen, others within
the entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used
by anyone other than these specified parties.
R. E. Brown & Company
March 21, 2013
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TOWN OF BREWSTER, MASSACHUSETTS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2012
A. SUMMARY OF AUDITOR’S RESULTS
1. The auditor’s report expresses an unqualified opinion on the basic financial statements of the Town of
Brewster, Massachusetts.
2. No significant deficiencies relating to the audit of the basic financial statements are reported in the report
on the basic financial statements.
3. No instances of noncompliance material to the basic financial statements of the Town of Brewster,
Massachusetts were disclosed during the audit.
4. No significant deficiencies relating to the audit of major federal award programs are reported in the report
on compliance with requirements applicable to each major program and on internal control over
compliance in accordance with OMB Circular A-133.
5. The auditor’s report on compliance for the major federal award programs for the Town of Brewster,
Massachusetts expresses an unqualified opinion on all major federal programs.
6. There are no audit findings that are required to be reported in accordance with Section 510(a) of OMB
Circular A-133 reported in this Schedule.
7. The program, tested as a major program included:
Name CFDA No.
Assistance to Firefighers Grant 97.044
8. The threshold used for distinguishing between Type A and B programs was $300,000.
9. The Town of Brewster, Massachusetts did not qualify as a low-risk auditee.
B. FINDINGS – BASIC FINANCIAL STATEMENT AUDIT – NONE.
C. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT
– NONE.
D. PRIOR YEAR FINDINGS & QUESTIONED COSTS – NONE
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