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CITY OF SALEM, MASSACHUSETTS REPORTS ON FEDERAL AWARD PROGRAMS YEAR ENDED JUNE 30, 2022 ---PAGE BREAK--- CITY OF SALEM, MASSACHUSETTS REPORTS ON FEDERAL AWARD PROGRAMS YEAR ENDED JUNE 30, 2022 TABLE OF CONTENTS Page 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 Report on compliance for each major federal program and report on internal control over compliance required by the Uniform Guidance 3 Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 6 Schedule of expenditures of federal awards 7 Notes to schedule of expenditures of federal awards 11 Schedule of findings and questioned costs 12 ---PAGE BREAK--- 1 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 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 Independent Auditor’s Report To the Honorable Mayor and members of the City Council City of Salem, 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 Salem, Massachusetts, as of and for the year ended June 30, 2022, (except for the Salem Contributory Retirement System which is as of and for the year ended December 31, 2021), and the related notes to the financial statements, which collectively comprise the City of Salem, Massachusetts’ basic financial statements, and have issued our report thereon dated December 20, 2022. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Salem, Massachusetts’ internal control over financial reporting (internal control) as a basis for designing 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 Salem, Massachusetts’ internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Salem, 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 combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’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 identity all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. 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 or significant deficiencies may exist that have not been identified. ---PAGE BREAK--- 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Salem, 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 statements. 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 City’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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. December 20, 2022 ---PAGE BREAK--- 3 Report on compliance for each major federal program and report on internal control over compliance required by the Uniform Guidance REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Independent Auditor’s Report To the Honorable Mayor and Members of the City Council City of Salem, Massachusetts Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Salem, Massachusetts’ compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City of Salem, Massachusetts’ major federal programs for the year ended June 30, 2022. The City of Salem, Massachusetts’ major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the City of Salem, 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, 2022. Basis for Opinion on Each Major Federal Program 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City of Salem, Massachusetts and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City of Salem, Massachusetts’ compliance with the compliance requirements referred to above. ---PAGE BREAK--- 4 Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City of Salem, Massachusetts’ federal programs. Auditor’s Responsibility for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City of Salem, Massachusetts’ compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City of Salem, Massachusetts’ compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City of Salem, Massachusetts’ compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the City of Salem, Massachusetts’ internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the City of Salem, Massachusetts’ internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on 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 a 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 ---PAGE BREAK--- 5 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 Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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. May 12, 2023 ---PAGE BREAK--- 6 Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE Independent Auditor’s Report To the Honorable Mayor and City Council City of Salem, 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 City of Salem, Massachusetts’ as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Salem, Massachusetts’ basic financial statements. We issued our report thereon dated December 20, 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. December 20, 2022 ---PAGE BREAK--- Federal Assistance Pass-Through Amount Passed Listing Entity Identifying Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Number Sub-Recipients Expenditures CHILD NUTRITION CLUSTER: U.S. DEPARTMENT OF AGRICULTURE: Passed through Massachusetts Department of Elementary and Secondary Education: Non-Cash Assistance (Commodities): National School Lunch 10.555 05-258 $ - $ 298,072 Cash Assistance: National School Lunch 10.555 05-258 - 1,971,457 Total National School Lunch - 2,269,529 Cash Assistance: School Breakfast 10.553 05-258 - 771,777 Summer Food Service 10.559 05-258-SF-159 - 126,151 Fresh Fruit and Vegetable 10.582 05-258 - 44,958 TOTAL CHILD NUTRITION - 3,212,415 COMMUNITY DEVELOPMENT BLOCK GRANTS CLUSTER: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: Direct Programs: Community Development Block Grant/Entitlement 14.218 N/A 189,467 1,367,442 COVID-19 Community Development Block Grant/Entitlement 14.218 N/A 83,330 160,387 TOTAL COMMUNITY DEVLOPMENT BLOCK GRANTS 272,797 1,527,829 EMPLOYMENT SERVICE CLUSTER: U.S. DEPARTMENT OF LABOR: Passed through Massachusetts Executive Office of Labor and Workforce Development: Employment Service/Wagner Peyser Funded Activities (Fiscal Year 17.207 CT EOL 21CCSALEWP - 45,891 Disabled Veterans' Outreach Program (DVOP) (Fiscal Year 17.801 21CCSALEVETSUI-DVOP - 27,102 TOTAL EMPLOYMENT SERVICE - 72,993 WORKFORCE INNOVATION AND OPPORTUNITY ACT (WIOA) CLUSTER: U.S. DEPARTMENT OF LABOR: Passed through Massachusetts Executive Office of Labor and Workforce Development: WIOA - Adult Program (Fiscal Year 17.258 22CCSALEWIA-WIOA-22-01 - 230,303 WIOA - Adult Program (Fiscal Year 17.258 21CCSALEWIA-WIOA 21 - 173,002 Total WIOA - Adult - 403,305 WIOA - Youth Activities (Fiscal Year 17.259 22CCSALEWIA-WIOA-22-01 235,349 345,322 WIOA - Youth Activities (Fiscal Year 17.259 21CCSALE-WIA-WIOA 21 18,694 146,425 Total WIOA - Youth 254,043 491,747 WIOA - Dislocated Worker Formula Grants (Fiscal Year 17.278 22CCSALEWIA-WIOA-22-01 - 486,347 WIOA - Dislocated Worker Formula Grants (Fiscal Year 17.278 21CCSALEWIA-WIOA-21 - 185,229 Total WIOA - Dislocated Worker Formula - 671,576 TOTAL WORKFORCE INNOVATION AND OPPORTUNITY ACT CLUSTER……………………… 254,043 1,566,628 SPECIAL EDUCATION CLUSTER: U.S. DEPARTMENT OF EDUCATION: Passed through Massachusetts Department of Elementary and Secondary Education: Special Education Grants to States (IDEA, Part B) (Fiscal Year 84.027 645-[PHONE REDACTED]-0258 - 143,162 Special Education Grants to States (IDEA, Part B) (Fiscal Year 84.027 252-[PHONE REDACTED]-0258 - 64,675 Special Education Grants to States (IDEA, Part B) (Fiscal Year 84.027 240-[PHONE REDACTED]-0258 - 1,041,159 Special Education Grants to States (IDEA, Part B) (Fiscal Year 84.027 645-[PHONE REDACTED]-0258 - 222,865 Special Education Grants to States (IDEA, Part B) (Fiscal Year 84.027 274-[PHONE REDACTED]-0258 - 22,075 Special Education Grants to States (IDEA, Part B) (Fiscal Year 84.027 244-[PHONE REDACTED]-0258 - 23,502 Special Education Grants to States (IDEA, Part B) (Fiscal Year 84.027 240-[PHONE REDACTED]-0258 - 177,566 Total Special Education Grants to States (IDEA, Part - 1,695,004 Special Education Preschool Grants (Fiscal Year 84.173 262-[PHONE REDACTED]-0258 - 46,260 Special Education Preschool Grants (Fiscal Year 84.173 262-[PHONE REDACTED]-0258 - 878 Total Special Education Preschool - 47,138 TOTAL SPECIAL EDUCATION - 1,742,142 (Continued) SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2022 City of Salem, Massachusetts 7 Reports on Federal Award Programs ---PAGE BREAK--- Federal Assistance Pass-Through Amount Passed Listing Entity Identifying Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Number Sub-Recipients Expenditures SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2022 AGING CLUSTER: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES: Passed through North Shore Elder Services, Inc.: Special Programs for the Aging Title III, Part B Grants for Supportive Services and Senior 93.044 15COA258000000002015 - 20,354 Special Programs for the Aging Title III, Part C Nutrition 93.045 15COA258000000002015 - 12,390 TOTAL AGING - 32,744 DIRECT PROGRAMS: U.S. DEPARTMENT OF COMMERCE: Direct Program: Economic Adjustment 11.307 N/A - 377,260 U.S. DEPARTMENT OF DEFENSE: Direct Program: ROTC Language and Culture Training 12.357 N/A - 87,624 U.S. DEPARTMENT OF JUSTICE: Direct Programs: COVID-19 Coronavirus Emergency Supplemental Funding 16.034 N/A - 1,090 Grants to Encourage Arrest Policies and Enforcement of Protection 16.590 N/A - 6,365 Bulletproof Vest Partnership 16.607 N/A - 15,044 TOTAL U.S. DEPARTMENT OF - 22,499 U.S. DEPARTMENT OF TREASURY: Direct Program: COVID-19 Coronavirus State and Local Fiscal Recovery 21.027 N/A - 1,000,011 U.S. ENVIROMENTAL PROTECTION AGENCY: Direct Program: Brownfield Assessment & Cooperative Cleanup 66.818 N/A - 9,358 U.S. DEPARTMENT OF HOMELAND SECURITY: Direct Programs: Assistance to Firefighters 97.044 N/A - 149,163 Port Security Grant 97.056 N/A - 279,170 TOTAL U.S. DEPARTMENT OF HOMELAND - 428,333 PASS-THROUGH PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE: Passed through Massachusetts Department of Elementary and Secondary Education: COVID-19 - Pandemic EBT Administrative 10.649 05-258 - 6,140 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: Passed through North Shore Home Consortium: Home Investment Partnership 14.239 M19-DC250216 - 198,491 U.S. DEPARTMENT OF THE INTERIOR: Passed though Massachusetts Division of Marine Fisheries: Clean Vessel 15.616 CVA REIMBURSEMENT - 10,000 U.S. DEPARTMENT OF JUSTICE: Passed through Massachusetts Executive Office of Public Safety and Homeland Security: Edward Byrne Memorial Justice Assistance Grant 16.738 - 4,801 U.S. DEPARTMENT OF LABOR: Passed through Massachusetts Executive Office of Labor and Workforce Development: Unemployment 17.225 20CCSALENEGREA-RE20 - 13,854 Trade Adjustment Assistance (Fiscal Year 17.245 21CCSALETRADE-TAA-CM-21 - 27,596 (Continued) City of Salem, Massachusetts 8 Reports on Federal Award Programs ---PAGE BREAK--- Federal Assistance Pass-Through Amount Passed Listing Entity Identifying Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Number Sub-Recipients Expenditures SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2022 Apprenticeship USA Grants (Fiscal Year 17.285 FY22-COS-001 - 177,958 Apprenticeship USA Grants (Fiscal Year 17.285 CT EOL19CCSALENEGREA - 161,527 Total Apprenticeship USA - 339,485 TOTAL U.S. DEPARTMENT OF - 380,935 U.S. DEPARTMENT OF TREASURY: Passed through Massachusetts Executive Office of Administration and Finance: COVID-19 Coronavirus Relief 21.019 COVID19 258 - 2,010,219 Passed through Massachusetts Department of Elementary and Secondary Education: COVID-19 Coronavirus Relief 21.019 102-[PHONE REDACTED]-0258 - 25,511 Total COVID-19 Coronavirus Relief - 2,035,730 U.S. DEPARTMENT OF EDUCATION: Passed through Massachusetts Department of Elementary and Secondary Education: Title I Grants to Local Educational Agencies (Fiscal Year 84.010 320-[PHONE REDACTED]-0258 - 680 Title I Grants to Local Educational Agencies (Fiscal Year 84.010 305-[PHONE REDACTED]-0258 - 847,816 Title I Grants to Local Educational Agencies (Fiscal Year 84.010 305-[PHONE REDACTED]-0258 - 247,729 Title I Grants to Local Educational Agencies (Fiscal Year 84.010 305-[PHONE REDACTED]-0258 - 1,662 Total Title I Grants to Local Educational - 1,097,887 Career and Technical Education Basic Grants to States (Fiscal Year 84.048 400-[PHONE REDACTED]-0258 - 31,816 Career and Technical Education Basic Grants to States (Fiscal Year 84.048 400-[PHONE REDACTED]-0258 - 39,039 Career and Technical Education Basic Grants to States (Fiscal Year 84.048 400-[PHONE REDACTED]-0258 - 2,200 Total Career and Technical Education Basic Grants to - 73,055 Education for Homeless Children and Youth (Fiscal Year 84.196 310-[PHONE REDACTED]-0258 - 6,931 Education for Homeless Children and Youth (Fiscal Year 84.196 310-[PHONE REDACTED]-0258 - 5,716 Total Education for Homeless Children and - 12,647 Twenty-First Century Community Learning Centers (Fiscal Year 84.287 647-[PHONE REDACTED]-0258 - 117,820 Twenty-First Century Community Learning Centers (Fiscal Year 84.287 646-[PHONE REDACTED]-0258 - 112,476 Total Twenty-First Century Community Learning - 230,267 English Language Acquisition Grants (Fiscal Year 84.365 186-[PHONE REDACTED]-0258 - 14,829 English Language Acquisition Grants (Fiscal Year 84.365 180-[PHONE REDACTED]-0258 - 35,694 English Language Acquisition Grants (Fiscal Year 84.365 180-[PHONE REDACTED]-0258 - 7,866 Total English Language Acquisition - 58,389 Supporting Effective Instruction State Grants (Fiscal Year 84.367 140-[PHONE REDACTED]-0258 - 95,427 Supporting Effective Instruction State Grants (Fiscal Year 84.367 140-[PHONE REDACTED]-0258 - 165,097 Supporting Effective Instruction State Grants (Fiscal Year 84.367 140-[PHONE REDACTED]-0258 - 15,252 Total Supporting Effective Instruction State - 275,776 Comprehenisve Literacy Development (Fiscal Year 84.371 509-[PHONE REDACTED]-0258 - 112,495 Comprehenisve Literacy Development (Fiscal Year 84.371 507-[PHONE REDACTED]-0258 - 5,000 Total Comprehenisve Literacy - 117,495 Student Support and Academic Enrichment (Fiscal Year 84.424 309-[PHONE REDACTED]-0258 - 37,376 COVID-19 Education Stabilization 84.425D 113-[PHONE REDACTED]-0258 - 113,115 COVID-19 Education Stabilization 84.425D 115-[PHONE REDACTED]-0258 - 3,143,493 COVID-19 Education Stabilization 84.425U 119-[PHONE REDACTED]-0258 - 539,679 COVID-19 Education Stabilization 84.425D 120-[PHONE REDACTED]-0258 - 48,600 COVID-19 Education Stabilization 84.425D 121-[PHONE REDACTED]-0258 - 31,208 COVID-19 Education Stabilization 84.425D 125-[PHONE REDACTED]-0258 - 54,851 COVID-19 Education Stabilization 84.425D 210-[PHONE REDACTED]-0258 - 16,736 COVID-19 Education Stabilization 84.425D 332-[PHONE REDACTED]-0258 - 42,506 COVID-19 Education Stabilization 84.425D 432-[PHONE REDACTED]-0258 - 631 Total COVID-19 Education Stabilization - 3,990,819 TOTAL U.S. DEPARTMENT OF - 5,893,711 (Continued) City of Salem, Massachusetts 9 Reports on Federal Award Programs ---PAGE BREAK--- Federal Assistance Pass-Through Amount Passed Listing Entity Identifying Through to Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Number Sub-Recipients Expenditures SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2022 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES: Passed through Massachusetts Department of Elementary and Secondary Education: Teenage Pregnancy Prevention Program (Fiscal Year 93.297 716-[PHONE REDACTED]-0258 - 8,782 Passed through Massachusetts Department of Elementary and Secondary Education: Improving Student Health and Academic Achievement (Fiscal Year 93.981 650-[PHONE REDACTED]-0258 - 7,000 Improving Student Health and Academic Achievement (Fiscal Year 93.981 650-[PHONE REDACTED]-0258 - 2,697 Total Improving Student Health and Academic Achievement…………………………………… - 9,697 TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES……………………………. - 18,479 U.S. DEPARTMENT OF HOMELAND SECURITY: Passed through Massachusetts Emergency Management Agency: COVID-19 Disaster Grants - Public Assistance (Presidentially Declared Disasters)………………… 97.036 DR 4496 PW-00167 - 45,314 $ 443,510 $ 18,673,437 (Concluded) See notes to schedule of expenditures of federal awards. City of Salem, Massachusetts 10 Reports on Federal Award Programs ---PAGE BREAK--- Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2022 City of Salem, Massachusetts 11 Reports on Federal Award Programs Note 1 – Basis of Presentation Notes to schedule of expenditures of federal awards The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the City of Salem, Massachusetts (City) under programs of the federal government for the year ended June 30, 2022. 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 Salem, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. Note 2 – Summary of Significant Accounting Policies The accounting and reporting policies of the City of Salem, Massachusetts are set forth below: a) Basis of Accounting – The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly, expenditures are recognized when the liability is incurred. 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. b) Cash Assistance – School Breakfast and National School Lunch Programs – Program expenditures represent federal reimbursement for meals provided during the year. c) Non-Cash Assistance (Commodities) – National School Lunch Program – Program expenditures represent the value of donated foods received during the year. d) Disaster grants have been recorded the year that the grant was approved. e) The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. ---PAGE BREAK--- Schedule of Findings and Questioned Costs Year Ended June 30, 2022 City of Salem, Massachusetts 12 Reports on Federal Award Programs A. Summary of Auditor’s Results Schedule of findings and questioned costs 1. The auditor’s report expresses an unmodified opinion on the financial statements of the City of Salem, Massachusetts. 2. No material weaknesses or significant deficiencies relating to the audit of the basic financial statements are reported in the 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 City of Salem, Massachusetts were disclosed during the audit. 4. No material weaknesses or significant deficiencies relating to the audit of the major federal award programs are reported in the 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. 5. The auditor’s report on compliance for the major federal award programs for the City of Salem, Massachusetts expresses an unmodified opinion on all major federal award programs. 6. There were no audit findings relative to the major federal award programs for the City of Salem, Massachusetts. 7. The programs tested as major programs were the Child Nutrition Cluster (ALN 10.553, ALN 10.555, ALN 10.559 and ALN 10.582), the Community Development Block Grant Entitlement Cluster (ALN 14.218), the Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) and the Education Stabilization Fund (ALN 84.425). 8. The threshold for distinguishing Types A and B programs was $750,000. 9. The City of Salem, Massachusetts was determined to be a low-risk auditee. B. Findings-Financial Statements Audit None. C. Findings and Questioned Costs-Major Federal Award Programs None. D. Summary Schedule of Prior Audit Findings None.