FAC Explorer

Audit 304817

FY End
2023-06-30
Total Expended
$66.79M
Findings
8
Programs
41
Organization: City of Fall River (MA)
Year: 2023 Accepted: 2024-04-29
Auditor: Roselli Clark and Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394957 2023-001 - Yes L
394958 2023-001 - Yes L
394959 2023-001 - Yes L
394960 2023-001 - Yes L
971399 2023-001 - Yes L
971400 2023-001 - Yes L
971401 2023-001 - Yes L
971402 2023-001 - Yes L

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $2.67M Yes 0
14.267 Continuum of Care Program $1.58M Yes 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $643,982 - 0
84.027 Special Education_grants to States $515,262 Yes 0
10.555 National School Lunch Program $446,890 Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $364,091 - 0
84.367 Improving Teacher Quality State Grants $353,889 - 0
84.424 Student Support and Academic Enrichment Program $325,487 - 0
14.231 Emergency Solutions Grant Program $313,036 - 0
10.582 Fresh Fruit and Vegetable Program $281,350 Yes 0
17.259 Wia Youth Activities $277,679 - 0
32.009 Emergency Connectivity Fund Program $271,388 - 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $250,000 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $131,671 - 0
93.268 Immunization Cooperative Agreements $106,271 - 0
84.041 Impact Aid $100,271 - 0
21.019 Coronavirus Relief Fund $97,387 - 0
84.371 Striving Readers $72,000 - 0
16.922 Equitable Sharing Program $69,382 - 0
14.239 Home Investment Partnerships Program $67,110 - 0
66.468 Capitalization Grants for Drinking Water State Revolving Funds $66,937 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $64,759 Yes 1
84.425 Education Stabilization Fund $64,668 Yes 0
17.278 Wia Dislocated Worker Formula Grants $63,000 - 0
17.225 Unemployment Insurance $55,153 - 0
84.173 Special Education_preschool Grants $55,106 Yes 0
17.207 Employment Service/wagner-Peyser Funded Activities $51,525 - 0
97.044 Assistance to Firefighters Grant $41,905 - 0
84.010 Title I Grants to Local Educational Agencies $32,595 - 0
84.048 Career and Technical Education -- Basic Grants to States $25,000 - 0
84.287 Twenty-First Century Community Learning Centers $23,073 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $22,459 - 0
17.285 Apprenticeship USA Grants $20,989 - 0
14.235 Supportive Housing Program $20,043 - 0
84.365 English Language Acquisition State Grants $16,552 - 0
45.310 Grants to States $6,479 - 0
17.258 Wia Adult Program $5,000 - 0
97.042 Emergency Management Performance Grants $4,870 - 0
14.218 Community Development Block Grants/entitlement Grants $2,635 - 0
20.600 State and Community Highway Safety $1,276 - 0
17.245 Trade Adjustment Assistance $79 - 0

Contacts

Name Title Type
PZNVFLKJGLX9 Sedryk Sousa Auditee
5083242200 Paul Gargano Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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 accompanying Schedule includes the federal grant transactions of the City. Although some of these programs may be supplemented with state and other revenue, only federal activity is shown. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Fall River, Massachusetts (the City) 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). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.
Title: U.S. Department of Agriculture Programs 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 accompanying Schedule includes the federal grant transactions of the City. Although some of these programs may be supplemented with state and other revenue, only federal activity is shown. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance The City receives non-cash commodities from the U.S. Department of Agriculture as a part of the National School Lunch program. The amounts reported as non-cash assistance represent the fair market value of these commodities received during the year. The amounts reported as cash assistance represent federal reimbursements for meals provided.
Title: U.S. Department of Homeland Security Programs 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 accompanying Schedule includes the federal grant transactions of the City. Although some of these programs may be supplemented with state and other revenue, only federal activity is shown. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance U.S. Department of Homeland Security’s Disaster Grants – Public Assistance (Presidentially Declared Disaster) expenditures are recognized when the Federal Emergency Management Administration (FEMA) approves the City’s project worksheet (PW) and the City has incurred the eligible expenditures. The amounts reported in the Schedule include expenditures incurred in prior fiscal years totaling $1,974,743 but awarded by FEMA in the current fiscal year.

Finding Details

Finding 2023-001
2023-001 U.S. Department of Treasury & Passed through the Commonwealth of Massachusetts Executive Office of Public Safety and Homeland Security COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – AL# 21.027 Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the June 30, 2023 reporting date, the City’s Project and Expenditure Reports understated expenditures by $629,040. Also, obligations were overstated by approximately $15,000,000. Cause: The City did not reconcile the Project and Expenditure report with the City’s general ledger before submitting. The City also considered City departments as subrecipients which caused them to report departmental agreements as obligations. Effect: The City did not properly report grant expenditures and obligations in the Project and Expenditure reporting. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2022-002 Recommendation: The City should implement procedures to reconcile the financial information in the Project and Expenditure reports to the City’s general ledger and contract files before submission. Views of Responsible Official: Management agrees with the finding, but notes that there was confusion with the US Treasury portal and the City reached out to the US Treasury and received clarification on reporting obligations moving forward. Additionally, the US Treasury issued in November 2023 the Obligation Interim Final Rule to address questions and comments regarding the definition of obligation by recipients. In addition, it revises the definition of “obligation” in US Treasury’s SLFRF program. Anticipated completion date of the corrective action is April 30, 2024.
Finding 2023-001
2023-001 U.S. Department of Treasury & Passed through the Commonwealth of Massachusetts Executive Office of Public Safety and Homeland Security COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – AL# 21.027 Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the June 30, 2023 reporting date, the City’s Project and Expenditure Reports understated expenditures by $629,040. Also, obligations were overstated by approximately $15,000,000. Cause: The City did not reconcile the Project and Expenditure report with the City’s general ledger before submitting. The City also considered City departments as subrecipients which caused them to report departmental agreements as obligations. Effect: The City did not properly report grant expenditures and obligations in the Project and Expenditure reporting. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2022-002 Recommendation: The City should implement procedures to reconcile the financial information in the Project and Expenditure reports to the City’s general ledger and contract files before submission. Views of Responsible Official: Management agrees with the finding, but notes that there was confusion with the US Treasury portal and the City reached out to the US Treasury and received clarification on reporting obligations moving forward. Additionally, the US Treasury issued in November 2023 the Obligation Interim Final Rule to address questions and comments regarding the definition of obligation by recipients. In addition, it revises the definition of “obligation” in US Treasury’s SLFRF program. Anticipated completion date of the corrective action is April 30, 2024.
Finding 2023-001
2023-001 U.S. Department of Treasury & Passed through the Commonwealth of Massachusetts Executive Office of Public Safety and Homeland Security COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – AL# 21.027 Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the June 30, 2023 reporting date, the City’s Project and Expenditure Reports understated expenditures by $629,040. Also, obligations were overstated by approximately $15,000,000. Cause: The City did not reconcile the Project and Expenditure report with the City’s general ledger before submitting. The City also considered City departments as subrecipients which caused them to report departmental agreements as obligations. Effect: The City did not properly report grant expenditures and obligations in the Project and Expenditure reporting. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2022-002 Recommendation: The City should implement procedures to reconcile the financial information in the Project and Expenditure reports to the City’s general ledger and contract files before submission. Views of Responsible Official: Management agrees with the finding, but notes that there was confusion with the US Treasury portal and the City reached out to the US Treasury and received clarification on reporting obligations moving forward. Additionally, the US Treasury issued in November 2023 the Obligation Interim Final Rule to address questions and comments regarding the definition of obligation by recipients. In addition, it revises the definition of “obligation” in US Treasury’s SLFRF program. Anticipated completion date of the corrective action is April 30, 2024.
Finding 2023-001
2023-001 U.S. Department of Treasury & Passed through the Commonwealth of Massachusetts Executive Office of Public Safety and Homeland Security COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – AL# 21.027 Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the June 30, 2023 reporting date, the City’s Project and Expenditure Reports understated expenditures by $629,040. Also, obligations were overstated by approximately $15,000,000. Cause: The City did not reconcile the Project and Expenditure report with the City’s general ledger before submitting. The City also considered City departments as subrecipients which caused them to report departmental agreements as obligations. Effect: The City did not properly report grant expenditures and obligations in the Project and Expenditure reporting. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2022-002 Recommendation: The City should implement procedures to reconcile the financial information in the Project and Expenditure reports to the City’s general ledger and contract files before submission. Views of Responsible Official: Management agrees with the finding, but notes that there was confusion with the US Treasury portal and the City reached out to the US Treasury and received clarification on reporting obligations moving forward. Additionally, the US Treasury issued in November 2023 the Obligation Interim Final Rule to address questions and comments regarding the definition of obligation by recipients. In addition, it revises the definition of “obligation” in US Treasury’s SLFRF program. Anticipated completion date of the corrective action is April 30, 2024.
Finding 2023-001
2023-001 U.S. Department of Treasury & Passed through the Commonwealth of Massachusetts Executive Office of Public Safety and Homeland Security COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – AL# 21.027 Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the June 30, 2023 reporting date, the City’s Project and Expenditure Reports understated expenditures by $629,040. Also, obligations were overstated by approximately $15,000,000. Cause: The City did not reconcile the Project and Expenditure report with the City’s general ledger before submitting. The City also considered City departments as subrecipients which caused them to report departmental agreements as obligations. Effect: The City did not properly report grant expenditures and obligations in the Project and Expenditure reporting. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2022-002 Recommendation: The City should implement procedures to reconcile the financial information in the Project and Expenditure reports to the City’s general ledger and contract files before submission. Views of Responsible Official: Management agrees with the finding, but notes that there was confusion with the US Treasury portal and the City reached out to the US Treasury and received clarification on reporting obligations moving forward. Additionally, the US Treasury issued in November 2023 the Obligation Interim Final Rule to address questions and comments regarding the definition of obligation by recipients. In addition, it revises the definition of “obligation” in US Treasury’s SLFRF program. Anticipated completion date of the corrective action is April 30, 2024.
Finding 2023-001
2023-001 U.S. Department of Treasury & Passed through the Commonwealth of Massachusetts Executive Office of Public Safety and Homeland Security COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – AL# 21.027 Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the June 30, 2023 reporting date, the City’s Project and Expenditure Reports understated expenditures by $629,040. Also, obligations were overstated by approximately $15,000,000. Cause: The City did not reconcile the Project and Expenditure report with the City’s general ledger before submitting. The City also considered City departments as subrecipients which caused them to report departmental agreements as obligations. Effect: The City did not properly report grant expenditures and obligations in the Project and Expenditure reporting. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2022-002 Recommendation: The City should implement procedures to reconcile the financial information in the Project and Expenditure reports to the City’s general ledger and contract files before submission. Views of Responsible Official: Management agrees with the finding, but notes that there was confusion with the US Treasury portal and the City reached out to the US Treasury and received clarification on reporting obligations moving forward. Additionally, the US Treasury issued in November 2023 the Obligation Interim Final Rule to address questions and comments regarding the definition of obligation by recipients. In addition, it revises the definition of “obligation” in US Treasury’s SLFRF program. Anticipated completion date of the corrective action is April 30, 2024.
Finding 2023-001
2023-001 U.S. Department of Treasury & Passed through the Commonwealth of Massachusetts Executive Office of Public Safety and Homeland Security COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – AL# 21.027 Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the June 30, 2023 reporting date, the City’s Project and Expenditure Reports understated expenditures by $629,040. Also, obligations were overstated by approximately $15,000,000. Cause: The City did not reconcile the Project and Expenditure report with the City’s general ledger before submitting. The City also considered City departments as subrecipients which caused them to report departmental agreements as obligations. Effect: The City did not properly report grant expenditures and obligations in the Project and Expenditure reporting. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2022-002 Recommendation: The City should implement procedures to reconcile the financial information in the Project and Expenditure reports to the City’s general ledger and contract files before submission. Views of Responsible Official: Management agrees with the finding, but notes that there was confusion with the US Treasury portal and the City reached out to the US Treasury and received clarification on reporting obligations moving forward. Additionally, the US Treasury issued in November 2023 the Obligation Interim Final Rule to address questions and comments regarding the definition of obligation by recipients. In addition, it revises the definition of “obligation” in US Treasury’s SLFRF program. Anticipated completion date of the corrective action is April 30, 2024.
Finding 2023-001
2023-001 U.S. Department of Treasury & Passed through the Commonwealth of Massachusetts Executive Office of Public Safety and Homeland Security COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – AL# 21.027 Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Condition: As of the June 30, 2023 reporting date, the City’s Project and Expenditure Reports understated expenditures by $629,040. Also, obligations were overstated by approximately $15,000,000. Cause: The City did not reconcile the Project and Expenditure report with the City’s general ledger before submitting. The City also considered City departments as subrecipients which caused them to report departmental agreements as obligations. Effect: The City did not properly report grant expenditures and obligations in the Project and Expenditure reporting. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2022-002 Recommendation: The City should implement procedures to reconcile the financial information in the Project and Expenditure reports to the City’s general ledger and contract files before submission. Views of Responsible Official: Management agrees with the finding, but notes that there was confusion with the US Treasury portal and the City reached out to the US Treasury and received clarification on reporting obligations moving forward. Additionally, the US Treasury issued in November 2023 the Obligation Interim Final Rule to address questions and comments regarding the definition of obligation by recipients. In addition, it revises the definition of “obligation” in US Treasury’s SLFRF program. Anticipated completion date of the corrective action is April 30, 2024.