FAC Explorer

Audit 300355

FY End
2023-06-30
Total Expended
$13.66M
Findings
2
Programs
17
Organization: Economic Development and Industrial Corporation of Boston (MA)
Year: 2023 Accepted: 2024-03-29
Auditor: Daniel Dennis & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389354 2023-002 Significant Deficiency - L
965796 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.77M Yes 0
11.307 Economic Adjustment Assistance $2.54M Yes 1
17.259 Wia Youth Activities $1.82M - 0
17.258 Wia Adult Program $1.32M - 0
17.207 Employment Service/wagner-Peyser Funded Activities $821,783 - 0
17.278 Wia Dislocated Worker Formula Grants $801,366 - 0
14.218 Community Development Block Grants/entitlement Grants $408,473 - 0
17.225 Unemployment Insurance $297,904 - 0
94.006 Americorps $289,577 - 0
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $259,346 - 0
17.285 Apprenticeship USA Grants $218,091 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $39,443 - 0
84.002 Adult Education - Basic Grants to States $26,846 - 0
17.801 Jobs for Veterans State Grants $21,116 - 0
17.245 Trade Adjustment Assistance $17,821 - 0
17.270 Reintegration of Ex-Offenders $5,814 - 0
17.804 Local Veterans' Employment Representative Program $4,770 - 0

Contacts

Name Title Type
V9MLQ6JQGBG5 Linda Qian Auditee
6179184384 Andrew Bacigalupo Auditor
No contacts on file

Notes to SEFA

Title: Financial Reporting Entity 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. Pass through entity identifying numbers are presented where available. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Economic Development and Industrial Corporation (EDIC), a quasi-public corporation, is a component unit of the City of Boston and an instrumentality of the Commonwealth of Massachusetts. EDIC’s Office of Workforce Development is a multi-service agency that receives federal, state and city funds to run a comprehensive system of education, job training, job placement, counseling, human resources and other support services for Boston residents. On October 20, 2016, the board approved the renaming of EDIC d/b/a the Boston Planning & Development Agency. For all legal documents and as a legal entity EDIC shall remain the same.
Title: Basis of Presentation 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. Pass through entity identifying numbers are presented where available. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of EDIC’s Office of Workforce Development under programs of the Federal government for the year ended June 30, 2023. 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the Schedule presents only a selected portion of the operations of EDIC, it is not intended to and does not present the financial position, changes in net position or cash flows of EDIC.

Finding Details

Finding 2023-002
2023-002 Reporting Federal Agency: U.S. Department of Commerce Federal Program: 11.307, Economic Development Cluster, Economic Adjustment Assistance Condition: Economic Development and Industrial Corporation of Boston (EDIC) could not provide supporting documentation that EDIC reported subaward information to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) timely. EDIC did submit the subaward information into the FSRS system, however, EDIC could not provide support when specific subaward information was submitted. Criteria: Subaward information is required to be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made In addition, 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Cause: EDIC’s internal controls were not adequately designed in order to support the date EDIC submitted subaward information into the FSRS system Effect: Subaward information may not have been submitted timely. Context: A sample of two subawards, totaling $12,756,667, out of seven subawards were reviewed. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure internal controls are designed to support that the entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and condition of the Federal award which should include documenting when subaward data is entered into the FSRS system. Management Response: EDIC entered the required subaward data within the FSRS system timely by utilizing the FSRS’s system function of reopening a prior submission however, supporting documentation of specific subaward information input into FSRS was not maintained. EDIC is in the process of updating its internal controls to maintain support of the submission date into the FSRS system.
Finding 2023-002
2023-002 Reporting Federal Agency: U.S. Department of Commerce Federal Program: 11.307, Economic Development Cluster, Economic Adjustment Assistance Condition: Economic Development and Industrial Corporation of Boston (EDIC) could not provide supporting documentation that EDIC reported subaward information to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) timely. EDIC did submit the subaward information into the FSRS system, however, EDIC could not provide support when specific subaward information was submitted. Criteria: Subaward information is required to be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made In addition, 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Cause: EDIC’s internal controls were not adequately designed in order to support the date EDIC submitted subaward information into the FSRS system Effect: Subaward information may not have been submitted timely. Context: A sample of two subawards, totaling $12,756,667, out of seven subawards were reviewed. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure internal controls are designed to support that the entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and condition of the Federal award which should include documenting when subaward data is entered into the FSRS system. Management Response: EDIC entered the required subaward data within the FSRS system timely by utilizing the FSRS’s system function of reopening a prior submission however, supporting documentation of specific subaward information input into FSRS was not maintained. EDIC is in the process of updating its internal controls to maintain support of the submission date into the FSRS system.