FAC Explorer

Audit 32465

FY End
2022-06-30
Total Expended
$23.94M
Findings
2
Programs
31
Organization: City of Pittsfield, Massachusetts (MA)
Year: 2022 Accepted: 2023-03-28
Auditor: Scanlon & Associates LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32972 2022-001 Significant Deficiency - L
609414 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $6.54M Yes 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $3.97M Yes 0
84.010 Title I Grants to Local Educational Agencies $1.91M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.84M Yes 1
10.553 School Breakfast Program $584,434 Yes 0
84.287 Twenty-First Century Community Learning Centers $508,333 Yes 0
14.218 Community Development Block Grants/entitlement Grants $446,599 Yes 0
10.555 National School Lunch Program $310,710 Yes 0
84.367 Improving Teacher Quality State Grants $239,708 - 0
10.559 Summer Food Service Program for Children $156,051 Yes 0
84.424 Student Support and Academic Enrichment Program $103,215 - 0
84.048 Career and Technical Education -- Basic Grants to States $102,996 - 0
84.027 Special Education_grants to States $79,512 - 0
94.002 Retired and Senior Volunteer Program $54,579 - 0
16.588 Violence Against Women Formula Grants $47,610 - 0
21.019 Coronavirus Relief Fund $43,588 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $41,049 - 0
20.600 State and Community Highway Safety $39,070 - 0
84.002 Adult Education - Basic Grants to States $31,219 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $29,806 - 0
84.365 English Language Acquisition State Grants $27,375 - 0
20.106 Airport Improvement Program $23,000 - 0
97.042 Emergency Management Performance Grants $20,150 - 0
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $7,500 - 0
10.649 Pandemic Ebt Administrative Costs $7,368 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $6,881 - 0
45.310 Grants to States $5,272 - 0
15.153 Hurricane Sandy Disaster Relief ? Coastal Resiliency Grants. $3,900 - 0
84.173 Special Education_preschool Grants $1,974 - 0
84.041 Impact Aid $535 - 0
84.371 Striving Readers $196 - 0

Contacts

Name Title Type
DG3AQ4WL5JW7 Matthew Kerwood Auditee
4134999466 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 Pittsfield, 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 Pittsfield, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Pittsfield, 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 Pittsfield, 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.
Title: U. S. DEPARTMENT OF HOMELAND SECURITY PROGRAMS 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. U. S. Department of Homeland Securitys Disaster Grants Public Assistance (Presidentially Declared Disaster) expenditures are recognized when the Federal Emergency Management Administration (FEMA) approves the City of Pittsfield, Massachusetts project worksheets (PW) and the City has incurred eligible expenditures. The amounts reported in the Schedule includes $41,049 of expenditures incurred in prior fiscal years but awarded by FEMA in the current fiscal year.

Finding Details

Finding 2022-001
Finding 2022-001 Significant Deficiency in Internal Control Over Compliance ? U.S. Department of Treasury ? Coronavirus State and Local Fiscal Recovery Funds ? (Federal Assistance Listing Number 21.027) ? Reporting Criteria: Recipients of Coronavirus State and Local Fiscal Recovery Funds are required to file Project and Expenditure Reports on a regular, recurring basis. For local governments that are in the tier which the City of Pittsfield is in, the reporting is required quarterly. The Project and Expenditure Reports require information to be reported on financial data, projects funded, expenditures, and contracts and subawards over $50,000, and other information. The financial data and expenditures reported should reflect the financial activity and expenditures on the municipal general ledger. Condition: The City of Pittsfield did submit quarterly Project and Expenditure Reports. However, we noted that the June 2022 report did not accurately reflect the expenditures on the City?s general ledger. Cumulative Expenditures reported were $2,098,712.98, but the City?s general ledger had only $1,843,659.90 total expenditures, with the reported expenditures $255,053.08 higher than the general ledger expenditures. We noted there was one invoice for the Ashley Water Treatment Facility for $235,017.58 that was paid on April 21, 2022 that appears to have been reported twice. The amount was included on the January-March 2022 report and also on the April-June 2022 report. The personnel in charge of administering the program have identified six other expenditures that were reported twice for a total of $18,607.30, leaving an unidentified variance of $1,428.20, which may be a difference in reporting salaries charged to the program. Cause: It appears that when the Project and Expenditure (P&E) reports were filed, there was no reconciliation back to the City?s accounting records of cumulative expenditures. The project administration had relied on reports provided to them that had the expenditures in question on both quarters? reports. Effect: The amount of total expenditures on the Project and Expenditure Reports is misstated and does not reflect the true total costs charged to the program. Questioned Costs: None reported. Recommendation: The City should establish procedures to reconcile the amounts reported as expended on the Project and Expenditure Reports to the City?s MUNIS general ledger. 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 State and Local Fiscal Recovery Funds ? (Federal Assistance Listing Number 21.027) ? Reporting Criteria: Recipients of Coronavirus State and Local Fiscal Recovery Funds are required to file Project and Expenditure Reports on a regular, recurring basis. For local governments that are in the tier which the City of Pittsfield is in, the reporting is required quarterly. The Project and Expenditure Reports require information to be reported on financial data, projects funded, expenditures, and contracts and subawards over $50,000, and other information. The financial data and expenditures reported should reflect the financial activity and expenditures on the municipal general ledger. Condition: The City of Pittsfield did submit quarterly Project and Expenditure Reports. However, we noted that the June 2022 report did not accurately reflect the expenditures on the City?s general ledger. Cumulative Expenditures reported were $2,098,712.98, but the City?s general ledger had only $1,843,659.90 total expenditures, with the reported expenditures $255,053.08 higher than the general ledger expenditures. We noted there was one invoice for the Ashley Water Treatment Facility for $235,017.58 that was paid on April 21, 2022 that appears to have been reported twice. The amount was included on the January-March 2022 report and also on the April-June 2022 report. The personnel in charge of administering the program have identified six other expenditures that were reported twice for a total of $18,607.30, leaving an unidentified variance of $1,428.20, which may be a difference in reporting salaries charged to the program. Cause: It appears that when the Project and Expenditure (P&E) reports were filed, there was no reconciliation back to the City?s accounting records of cumulative expenditures. The project administration had relied on reports provided to them that had the expenditures in question on both quarters? reports. Effect: The amount of total expenditures on the Project and Expenditure Reports is misstated and does not reflect the true total costs charged to the program. Questioned Costs: None reported. Recommendation: The City should establish procedures to reconcile the amounts reported as expended on the Project and Expenditure Reports to the City?s MUNIS general ledger. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan following on page 17.