FAC Explorer

Audit 31097

FY End
2022-06-30
Total Expended
$37.50M
Findings
2
Programs
32
Organization: City of Chicopee, Massachusetts (MA)
Year: 2022 Accepted: 2023-03-30
Auditor: Scanlon & Associates LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32302 2022-001 Significant Deficiency - L
608744 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $11.23M Yes 0
84.425 Education Stabilization Fund $8.70M Yes 0
84.010 Title I Grants to Local Educational Agencies $2.84M - 0
10.553 School Breakfast Program $1.39M Yes 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $1.30M Yes 0
14.218 Community Development Block Grants/entitlement Grants $452,434 Yes 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $377,059 - 0
84.367 Improving Teacher Quality State Grants $355,845 - 0
10.559 Summer Food Service Program for Children $290,182 Yes 0
10.555 National School Lunch Program $285,720 Yes 0
84.027 Special Education_grants to States $266,167 - 0
84.424 Student Support and Academic Enrichment Program $205,050 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $175,406 - 0
84.048 Career and Technical Education -- Basic Grants to States $143,172 - 0
14.239 Home Investment Partnerships Program $80,000 - 0
84.365 English Language Acquisition State Grants $67,245 - 0
97.042 Emergency Management Performance Grants $55,988 - 0
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $48,089 - 0
21.019 Coronavirus Relief Fund $44,504 Yes 0
84.173 Special Education_preschool Grants $23,274 - 0
16.922 Equitable Sharing Program $23,191 - 0
10.558 Child and Adult Care Food Program $15,816 - 0
20.600 State and Community Highway Safety $13,761 - 0
84.371 Striving Readers $13,438 - 0
10.649 Pandemic Ebt Administrative Costs $11,659 - 0
84.196 Education for Homeless Children and Youth $11,025 - 0
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $9,331 - 0
16.544 Youth Gang Prevention $9,153 - 0
16.004 Law Enforcement Assistance_narcotics and Dangerous Drugs Training $5,140 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $3,450 - 0
45.310 Grants to States $2,050 - 0
97.044 Assistance to Firefighters Grant $865 - 0

Contacts

Name Title Type
TESCXLNLPLH7 Sharyn Riley Auditee
4135941410 Thomas J Scanlon JR Auditor
No contacts on file

Notes to SEFA

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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the City of Chicopee, Massachusetts, 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 Chicopee, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Chicopee, Massachusetts.
Title: FOOD DISTRIBUTION 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City of Chicopee, Massachusetts, receives non-cash commodities from the U.S. Department of Agriculture as 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 reimbursement for meals provided.
Title: GUARANTEED LOANS 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City of Chicopee, Massachusetts, has a guaranteed loan outstanding under the Community Development Block Grant Section 108 Loan Guarantees program. The City had $2,500,000 outstanding as of June 30, 2022. During fiscal year 2022, the City paid $250,000 principal and $80,850 interest on the loan. The loan principal payments are due through fiscal year 2032.

Finding Details

Finding 2022-001
Finding 2022-001 Significant Deficiency in Internal Control Over Compliance ? U.S. Department of Treasury ? Coronavirus Relief Fund City Municipal Assistance ? (CFDA No. 21.019) ? Reporting Passed Through Commonwealth of Massachusetts Executive Office of Administration and Finance Criteria: The U. S. Department of Treasury Office of Inspector General requires recipients of the CARES Act Coronavirus Relief Fund dollars to file periodic reports that describe the uses of these funds. The Massachusetts Executive Office of Administration and Finance requires that sub-recipient municipal governments (cities, towns, and regional school districts) submit quarterly reports on expenditures of the Coronavirus Relief Fund to the State administering agency. The reports should reflect the amounts expended on the municipal general ledger accounting records. Condition: The City of Chicopee, Massachusetts, filed the required quarterly reports. However, the reports were not reconciled to the City?s general ledger. The Final Submission Report showed $1,450,148.36 more reported on the report than was posted to the general ledger CARES account. Cause: The City does not have procedures in place to reconcile reporting filed with the State administering agency to the activity in the City?s general ledger. The costs reported that were not charged to the CARES Act account are likely expenses that were charged to City departmental budgets and later determined to be eligible under the program but were not reclassified to the CARES Act account on the City?s general ledger. Effect: The City could misstate or include unallowed costs in its financial reporting of grant funds. Questioned Costs: None reported. Recommendation: The City personnel should reconcile the reports to the City?s general ledger. When expenses are reclassified from other accounts to the Coronavirus Relief Funds, a journal entry adjustment should be made to the general ledger and proper supporting documentation should be retained to have a proper audit trail. Views of Responsible Officials and Planned Corrective Action: See corrective action plan following on page 17.
Finding 2022-001
Finding 2022-001 Significant Deficiency in Internal Control Over Compliance ? U.S. Department of Treasury ? Coronavirus Relief Fund City Municipal Assistance ? (CFDA No. 21.019) ? Reporting Passed Through Commonwealth of Massachusetts Executive Office of Administration and Finance Criteria: The U. S. Department of Treasury Office of Inspector General requires recipients of the CARES Act Coronavirus Relief Fund dollars to file periodic reports that describe the uses of these funds. The Massachusetts Executive Office of Administration and Finance requires that sub-recipient municipal governments (cities, towns, and regional school districts) submit quarterly reports on expenditures of the Coronavirus Relief Fund to the State administering agency. The reports should reflect the amounts expended on the municipal general ledger accounting records. Condition: The City of Chicopee, Massachusetts, filed the required quarterly reports. However, the reports were not reconciled to the City?s general ledger. The Final Submission Report showed $1,450,148.36 more reported on the report than was posted to the general ledger CARES account. Cause: The City does not have procedures in place to reconcile reporting filed with the State administering agency to the activity in the City?s general ledger. The costs reported that were not charged to the CARES Act account are likely expenses that were charged to City departmental budgets and later determined to be eligible under the program but were not reclassified to the CARES Act account on the City?s general ledger. Effect: The City could misstate or include unallowed costs in its financial reporting of grant funds. Questioned Costs: None reported. Recommendation: The City personnel should reconcile the reports to the City?s general ledger. When expenses are reclassified from other accounts to the Coronavirus Relief Funds, a journal entry adjustment should be made to the general ledger and proper supporting documentation should be retained to have a proper audit trail. Views of Responsible Officials and Planned Corrective Action: See corrective action plan following on page 17.