FAC Explorer

Audit 317341

FY End
2023-06-30
Total Expended
$11.11M
Findings
16
Programs
27
Organization: City of Gloucester, Massachusetts (MA)
Year: 2023 Accepted: 2024-08-16
Auditor: Roselli Clark and Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
481219 2023-002 Material Weakness - L
481220 2023-001 - Yes I
481221 2023-001 - Yes I
481222 2023-001 - Yes I
481223 2023-001 - Yes I
481224 2023-001 - Yes I
481225 2023-001 - Yes I
481226 2023-001 - Yes I
1057661 2023-002 Material Weakness - L
1057662 2023-001 - Yes I
1057663 2023-001 - Yes I
1057664 2023-001 - Yes I
1057665 2023-001 - Yes I
1057666 2023-001 - Yes I
1057667 2023-001 - Yes I
1057668 2023-001 - Yes I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.06M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $373,009 Yes 0
14.218 Community Development Block Grants/entitlement Grants $303,594 Yes 0
10.553 School Breakfast Program $174,890 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $136,803 - 0
84.367 Improving Teacher Quality State Grants $72,261 - 0
10.555 National School Lunch Program $65,877 - 0
14.239 Home Investment Partnerships Program $60,000 - 0
93.788 Opioid Str $51,185 - 0
84.287 Twenty-First Century Community Learning Centers $45,321 - 0
84.027 Special Education_grants to States $30,792 Yes 1
84.010 Title I Grants to Local Educational Agencies $27,156 - 0
84.048 Career and Technical Education -- Basic Grants to States $15,538 - 0
84.196 Education for Homeless Children and Youth $15,206 - 0
84.173 Special Education_preschool Grants $12,421 Yes 1
16.922 Equitable Sharing Program $9,308 - 0
11.417 Sea Grant Support $8,600 - 0
20.600 State and Community Highway Safety $8,474 - 0
45.310 Grants to States $7,386 - 0
84.425 Education Stabilization Fund $7,000 Yes 0
97.044 Assistance to Firefighters Grant $3,597 - 0
15.U01 Enhc Visitor Center Grant $2,500 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $2,460 - 0
93.758 Preventive Health and Health Services Block Grant Funded Solely with Prevention and Public Health Funds (pphf) $617 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $426 Yes 0
84.365 English Language Acquisition State Grants $256 - 0
84.424 Student Support and Academic Enrichment Program $26 - 0

Contacts

Name Title Type
PDNETU6N7D83 Kenny Costa Auditee
9782819730 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 Gloucester, 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 $764,359 of expenditures incurred in prior fiscal years but awarded by FEMA in the current fiscal year.

Finding Details

Finding 2023-002
2023-002 U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Material Weakness in Internal Controls and Compliance Finding 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: The City did not prepare and file the four required quarterly Project and Expenditure reports for fiscal year 2023. Cause: The City was not aware of the timing of grant reporting requirements. Effect: The City is not in compliance with the federal award reporting requirements. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: The City should implement procedures to prepare Project and Expenditure reports in a timely manner. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-002
2023-002 U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Material Weakness in Internal Controls and Compliance Finding 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: The City did not prepare and file the four required quarterly Project and Expenditure reports for fiscal year 2023. Cause: The City was not aware of the timing of grant reporting requirements. Effect: The City is not in compliance with the federal award reporting requirements. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: The City should implement procedures to prepare Project and Expenditure reports in a timely manner. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.
Finding 2023-001
2023-001 U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 COVID-19 – Special Education Cluster – CFDA 84.027X Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: One vendor was awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $43,827.75 Repeat Finding from Prior Year: Prior year finding 2023-002 Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.