FINANCIAL AUDIT-FY2021-includes ValleyBike
CITY OF NORTHAMPTON, MASSACHUSETTS
INDEPENDENT AUDITOR’S REPORTS PURSUANT
TO GOVERNMENTAL AUDITING STANDARDS
AND UNIFORM GUIDANCE
FOR THE YEAR ENDED JUNE 30, 2021
2
CITY OF NORTHAMPTON, MASSACHUSETTS
Independent Auditors’ Reports Pursuant
To Governmental Auditing Standards
And Uniform Guidance
For the Year Ended June 30, 2021
TABLE OF CONTENTS
Page
TABLE OF CONTENTS ............................................................................................................................... 2
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 ................................................................................................... 3-4
Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ...... 5-6
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS .................................................................. 7-12
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ......................................... 13
SCHEDULE OF FINDINGS AND QUESTIONED COSTS ......................................................................... 14
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS ............................................................................ 15
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 Mayor
City of Northampton, 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 City of Northampton, Massachusetts, as of and for the year ended June 30, 2021, (except for the
Northampton Contributory Retirement System, which is as of and for the year ended December 31, 2020),
and the related notes to the financial statements, which collectively comprise the City of Northampton,
Massachusetts’ basic financial statements, and have issued our report thereon dated March 8, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Northampton,
Massachusetts’ 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 City of
Northampton, Massachusetts’ internal control. Accordingly, we do not express an opinion on the
effectiveness of the City of Northampton, Massachusetts’ 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.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Northampton, Massachusetts’
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.
Scanlon and Associates, LLC
Scanlon & Associates, LLC
South Deerfield, Massachusetts
March 8, 2022
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor
City of Northampton, Massachusetts
Report on Compliance for Each Major Federal Program
We have audited the City of Northampton, 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 City of Northampton, Massachusetts’ major federal programs for the year ended June 30,
2021. The City of Northampton, 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 City of Northampton,
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 City of Northampton, 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 City of Northampton,
Massachusetts’ compliance.
Opinion on Each Major Federal Program
In our opinion, the City of Northampton, Massachusetts, complied, in all material respects, with the types
of compliance requirement referred to above that could have a direct and material effect on each of its
major federal programs for the year ended June 30, 2021.
Report on Internal Control Over Compliance
Management of the City of Northampton, 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 City of Northampton, Massachusetts’
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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 City of Northampton,
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 deficiencies. 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 City of Northampton, Massachusetts, as
of and for the year ended June 30, 2021, (except for the Northampton Contributory Retirement System,
which is as of and for the year ended December 31, 2020), and the related notes to the financial
statements, which collectively comprise the City of Northampton, Massachusetts’ basic financial
statements. We issued our report thereon dated March 8, 2022, 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.
Scanlon and Associates, LLC
Scanlon & Associates, LLC
South Deerfield, Massachusetts
March 8, 2022
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PAGE 1 OF 6
CITY OF NORTHAMPTON, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
Pass-Through
Federal Entity Passed Total
Federal Grantor/Pass-Through Grantor/CFDA Identifying Through to Federal
Program or Cluster Title Number Number Subrecipients Expenditures
U. S. Department of Agriculture
Passed Through Commonwealth of Massachusetts
Department of Elementary and Secondary Education:
Child Nutrition Cluster:
Northampton Public Schools:
Summer Food Service Program - COVID-19 10.559 08-210 -$ 1,122,751$
Smith Vocational and Agricultral High School:
School Breakfast Program - COVID-19 10.553 08-210A - 20,955
National School Lunch Program - COVID-19 10.555 08-210A - 96,660
National School Lunch Program Assistance 10.579 722-505644-2021-0406 - 2,954
Non-Cash Financial Assistance:
Commodities - Northampton Public Schools 10.555 08-210 - 64,246
Commodities - Smith Vocational and Agricultural High School 10.555 08-210A - 5,485
Total Child Nutrition Cluster - 1,313,051
Total U. S. Department of Agriculture - 1,313,051
U. S. Department of Housing and Urban Development
Direct Programs:
Community Development Block Grants/Entitlement Grants:
Community Development Block Grant 14.218 376,437 625,027
Community Development Block Grant - COVID-19 14.218 43,749 61,971
Program Income 14.218 - 1,000
Total Community Development Block Grant - Entitlement Grants 420,186 687,998
Total U. S. Department of Housing and Urban Development 420,186 687,998
TOTAL PAGE 1 OF 6 420,186$ 2,001,049$
The Notes to the Schedule of Expenditures of Federal Awards are an integral part of this Schedule.
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PAGE 2 OF 6
CITY OF NORTHAMPTON, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
Pass-Through
Federal Entity Passed Total
Federal Grantor/Pass-Through Grantor/CFDA Identifying Through to Federal
Program Or Cluster Title Number Number Subrecipients Expenditures
U. S. Department of Justice
Direct Programs:
Bureau of Justice Assistance
High Risk Offenders 16.590 -$ 84,852$
Bulletproof Vests Partnership Program 16.607 - 13,950
Justice Assistance Grant 16.738 - 6,509
Comprehensive Opioid Substance Abuse 16.838 - 30,847
Passed Through Hampshire County Sherriff's Office:
Opioid Task Force 16.610 - 66,453
Passed Through Berkshire Regional Planning Commission:
Overdose to Data Action Project 16.610 - 20,204
Passed Through Commonwealth of Massachusetts
Executive Office of Public Safety and Security:
Edward Byrne Memorial Justice Assistance Grant 16.738 - 17,545
Passed Through Commonwealth of Massachusetts
Northwest District Attorney:
Anti-Crime Task Force 16.738 - 21,895
Total U. S. Department of Justice - 262,255
U. S. Department of Transportation
Passed Through Commonwealth of Massachusetts
Department of Transportation:
Pioneer Valley Regional Bike Share Program - Phase II 20.505 110585 - 896,494
Passed Through Commonwealth of Massachusetts
Executive Office of Public Safety and Security:
State and Community Highway Safety:
Traffic Enforcement 20.600 - 1,202
Enforcement and Equipment 20.600 - 15,178
Pedestrian/Bike Safety 20.600 - 1,683
Total State and Community Highway Safety - 18,063
Total U. S. Department of Transportation - 914,557
TOTAL PAGE 2 OF 6 -$ 1,176,812$
The Notes to the Schedule of Expenditures of Federal Awards are an integral part of this Schedule.
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PAGE 3 OF 6
CITY OF NORTHAMPTON, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
Pass-Through
Federal Entity Passed Total
Federal Grantor/Pass-Through Grantor/CFDA Identifying Through to Federal
Program Or Cluster Title Number Number Subrecipients Expenditures
U. S. Department of the Treasury
Coronavirus Relief Fund:
Passed Through Commonwealth of Massachusetts
Department of Revenue:
Coronavirus Relief Fund Municipal Aid 21.019 130,000$ 1,976,421$
Passed Through Commonwealth of Massachusetts
Office of the Secretary of the Commonwealth:
Coronavirus Relief Fund Election Postage Reimbursement 21.019 - 4,643
Passed Through Commonwealth of Massachusetts
Department of Elementary and Secondary Education:
Northampton Public Schools:
CvRF School Reopening - 2021 21.019 102-394509-2021-0210 - 550,697
CvRF Remote Learning Technology Essentials - 2021 21.019 118-401465-2021-0210 - 51,525
CvRF School Nutrition - 2021 21.019 CSN - 11,145
Smith Vocational and Agricultural High School:
CvRF School Reopening - 2021 21.019 102-389029-2021-0406 - 155,412
CvRF School Nutrition - 2021 21.019 CSN - 2,260
Total Coronavirus Relief Fund 130,000 2,752,103
Total U. S. Department of the Treasury 130,000 2,752,103
Institute for Museum and Library Servies
Direct Program:
Accelerating Promising Practices for Small Libraries
Grant No. LG-27-19-0281-19 45.312 - 14,963
Passed Through Commonwealth of Massachusetts
Board of Library Commissioners:
Library Services and Technology Act:
Go Local 45.310 LS-246159-OLS-20 - 7,500
COVID-19 CARES Act - Virtual Programming for Distance Learning 45.310 LS-246539-OLS-20 - 2,350
Total Institute for Museum and Library Services - 24,813
TOTAL PAGE 3 OF 6 130,000$ 2,776,916$
The Notes to the Schedule of Expenditures of Federal Awards are an integral part of this Schedule.
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PAGE 4 OF 6
CITY OF NORTHAMPTON, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
Pass-Through
Federal Entity Passed Total
Federal Grantor/Pass-Through Grantor/CFDA Identifying Through to Federal
Program or Cluster Title Number Number Subrecipients Expenditures
U. S. Department of Education
Passed Through Commonwealth of Massachusetts
Department of Elementary and Secondary Education:
Title I Grants to Local Educational Agencies:
Northampton Public Schools:
Title I - 2020 84.010 305-291377-2020-0210 -$ 21,785$
Title I - 2021 84.010 305-391595-2021-0210 - 446,108
Turnaround Assistance - 2021 84.010 325-450634-2021-0210 - 10,059
Smith Vocational and Agricultural High School:
Title I - 2019 84.010 305-209245-2019-0406 - 1,824
Title I - 2020 84.010 305-292396-2020-0406 - 29,726
Title I - 2021 84.010 305-400677-2021-0406 - 55,545
Total Title I Grants to Local Educational Agencies - 565,047
Special Education Cluster:
Northampton Public Schools:
Special Education 94-142 Allocation - 2020 84.027 240-344997-2020-0210 - 64,841
Special Education 94-142 Allocation - 2021 84.027 240-405608-2021-0210 - 416,702
Leading Educational Acces Project - 2021 84.027 231-396155-2021-0210 - 3,750
Special Education Early Childhood Allocation - 2019 84.173 262-212599-2019-0210 - 1,361
Special Education Early Childhood Allocation - 2021 84.173 262-405609-2021-0210 - 22,871
Special Education Early Childhood Program Improvement - 2021 84.173 298-488617-2021-0210 - 2,024
Smith Vocational and Agricultural High School:
Special Education 94-142 Allocation - 2020 84.027 240-291563-2020-0406 - 82,461
Special Education 94-142 Allocation - 2021 84.027 240-391620-2021-0406 - 127,676
Special Education Program Improvement - 2021 84.027 274-483221-2021-0406 - 5,860
Total Special Education Cluster - 727,546
Career and Technical Education - Basic Grants to States:
Smith Vocational and Agricultural High School:
Occupational Education-Vocational Skills - 2020 84.048 400-291823-2020-0406 - 3,885
Occupational Education-Vocational Skills - 2021 84.048 400-388974-2021-0406 - 75,663
Total Career and Technical Education - Basic Grants to States - 79,548
TOTAL PAGE 4 OF 6 -$ 1,372,141$
The Notes to the Schedule of Expenditures of Federal Awards are an integral part of this Schedule.
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PAGE 5 OF 6
CITY OF NORTHAMPTON, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
Pass-Through
Federal Entity Passed Total
Federal Grantor/Pass-Through Grantor/CFDA Identifying Through to Federal
Program or Cluster Title Number Number Subrecipients Expenditures
U. S. Department of Education
Passed Through Commonwealth of Massachusetts
Department of Elementary and Secondary Education:
Improving Teacher Quality State Grants:
Northampton Public Schools:
Teacher Quality - 2020 84.367A 140-291378-2020-0210 -$ 1,781$
Teacher Quality - 2021 84.367A 140-391598-2021-0210 - 69,926
Smith Vocational and Agricultural High School:
Teacher Quality - 2019 84.367A 140-209313-2019-0406 - 1,513
Teacher Quality - 2020 84.367A 140-292397-2020-0406 - 3,204
Teacher Quality - 2021 84.367A 140-400678-2021-0406 - 11,873
Total Improving Teacher Quality State Grants - 88,297
Student Support and Academic Enrichment Program:
Northampton Public Schools:
Student Support and Academic Enrichment - 2020 84.424 309-291564-2020-0210 - 1,530
Student Support and Academic Enrichment - 2021 84.424 309-391599-2021-0210 - 29,207
Smith Vocational and Agricultural High School:
Student Support and Academic Enrichment - 2019 84.424 309-209314-2019-0406 - 259
Student Support and Academic Enrichment - 2020 84.424 309-292398-2020-0406 - 6,353
Student Support and Academic Enrichment - 2021 84.424 309-400679-2021-0406 - 4,451
Total Student Support and Academic Enrichment Program - 41,800
Education Stabilization Fund:
Northampton Public Schools:
Governor's Emergency Education Relief - 2021 84.425C 423-490057-2021-0210 - 15,263
Emergency and Secondary School Emergency Relief I - 2021 84.425D 113-394508-2021-0210 - 33,411
Smith Vocational and Agricultural High School:
Emergency and Secondary School Emergency Relief I - 2020 84.425D 113-378379-2020-0406 - 86,175
Emergency and Secondary School Emergency Relief II - 2021 84.425D 115-495505-2021-0406 - 87,632
Total Education Stabilization Fund - 222,481
TOTAL PAGE 5 OF 6 - 352,578
TOTAL PAGE 4 OF 6 - 1,372,141
Total U. S. Department of Education -$ 1,724,719$
The Notes to the Schedule of Expenditures of Federal Awards are an integral part of this Schedule.
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PAGE 6 OF 6
CITY OF NORTHAMPTON, MASSACHUSETTS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
Pass-Through
Federal Entity Passed Total
Federal Grantor/Pass-Through Grantor/CFDA Identifying Through to Federal
Program or Cluster Title Number Number Subrecipients Expenditures
U. S. Department of Health and Human Services
Direct Programs:
Substance Abuse and Mental Health Services Administration -
Hampshire HOPE - Responding to the Opioid Crisis 93.243 31,500$ 398,336$
Drug Free Communities Support Program Grants:
Drug Free Communities - 2020 93.276 - 22,798
Drug Free Communities - 2021 93.276 - 137,960
Total Drug Free Communities Support Program Grants - 160,758
COVID-19 Provider Relief Fund 93.498 - 55,355
Passed Through Commonwealth of Massachusetts
Department of Public Health:
Public Health Emergency Preparedness 93.069 - 90,459
Mass in Motion Program 93.757 INTF4200P01502925073 - 69,603
Opioid Abuse Prevention Collaborative 93.959 INTF2354M04301822075 - 87,009
Passed Through Commonwealth of Massachusetts
Bureau of Substance Addiction Services:
Overdose Data to Action Project 93.912 - 87,049
Passed Through National Association of County and City
Health Officials:
Overdose Prevention and Response Mentorship Program 93.008 6-HITEP-20045-01-01 - 82,095
Passed Through Franklin Regional Council of Governments:
Hampshire Medical Reserve Corps 93.008 - 22,056
Passed Through Highland Valley Elder Services:
Coronavirus Senior Services 93.044 - 3,500
Total U. S. Department of Health and Human Services 31,500 1,056,220
U. S. Department of Homeland Security
Passed Through Commonwealth of Massachusetts
Emergency Management Agency:
COVID-19 Disaster Public Assistance 97.036 DR-4496 - 134,281
Emergency Management Performance Grants 97.042 - 6,500
Homeland Security Planning 97.067 - 5,535
Total U. S. Department of Homeland Security - 146,316
TOTAL PAGE 6 OF 6 31,500 1,202,536
TOTAL PAGE 5 OF 6 - 352,578
TOTAL PAGE 4 OF 6 - 1,372,141
TOTAL PAGE 3 OF 6 130,000 2,776,916
TOTAL PAGE 2 OF 6 - 1,176,812
TOTAL PAGE 1 OF 6 420,186 2,001,049
TOTAL FEDERAL AWARDS EXPENDED 581,686$ 8,882,032$
The Notes to the Schedule of Expenditures of Federal Awards are an integral part of this Schedule.
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CITY OF NORTHAMPTON, MASSACHUSETTS
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2021
NOTE A – BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal
grant activity of the City of Northampton, Massachusetts, under programs of the federal government for
the year ended June 30, 2021. 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 City of Northampton, Massachusetts, it is not
intended to and does not present the financial position, changes in net position, or cash flows of the City of
Northampton, Massachusetts.
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement.
NOTE C – INDIRECT COSTS
The City of Northampton, Massachusetts, did not used the de minimis cost rate. The City of Northampton,
Massachusetts, has not charged any indirect costs to any of its federal awards.
NOTE D – FOOD DISTRIBUTION
Nonmonetary assistance is reported in the Schedule at the fair market value of the commodities received
and disbursed.
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CITY OF NORTHAMPTON, MASSACHUSETTS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2021
SECTION I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of report the auditor issued on whether the financial statements audited were prepared in
accordance with GAAP: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified that is (are) not
considered to be material weakness(es)? Yes X None Reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major federal programs:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified that is (are) not
considered to be material weakness(es)? Yes X None Reported
Type of Auditor’s Report issued on compliance for major federal programs: Unmodified
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR 200.516(a)? Yes X No
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
10.553, 10.555, 10.559,
10.579 U.S. Department of Agriculture – Child Nutrition Cluster
20.505 U.S. Department of Transportation –
Metropolitan Transportation Planning
21.019 U.S. Department of the Treasury – Coronavirus Relief Fund
Dollar threshold used to distinguish between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? Yes X No
SECTION II – FINANCIAL STATEMENT FINDINGS
None reported.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None reported.
SECTION IV – PRIOR YEAR FINDINGS
Status of prior year finding is reported following on page 15.
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CITY OF NORTHAMPTON, MASSACHUSETTS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2021
Finding 2020-001
Non-Compliance/Significant Deficiency in Internal Control Over Compliance – U.S. Department of
the Treasury – Coronavirus Relief Fund – (CFDA No. 21.019) – Allowable Cost/Cost Principles –
Hazard Pay for City Employees Not Related to COVID-19 Duties
Passed Through Commonwealth of Massachusetts Department of Revenue
Condition:
The City charged hazard pay for employees’ hours worked on-site to the Coronavirus Relief Fund, even
though their work was not specifically COVID-19 related duties. The amount of $197,669, which is the
total hazard pay charged to the Coronavirus Relief Fund between March 17, 2020 and June 30, 2020 for
employees not working on COVID-19 related duties, was questioned.
Current Status:
The City appropriated $197,669 through a transfer from the City’s Free Cash in the General Fund to cover
the amount questioned. This amount was reversed on a subsequent quarterly report to the State of
expenditures from the Coronavirus Relief Fund.