Audit 43791

FY End
2022-06-30
Total Expended
$49.32M
Findings
18
Programs
49
Organization: City of Portland Maine (ME)
Year: 2022 Accepted: 2023-03-19
Auditor: Melanson CPAS

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
44518 2022-004 Material Weakness - B
44519 2022-004 Material Weakness - B
44520 2022-003 Material Weakness - B
44521 2022-003 Material Weakness - B
44522 2022-003 Material Weakness - B
44523 2022-003 Material Weakness - B
44524 2022-003 Material Weakness - B
44525 2022-003 Material Weakness - B
44526 2022-003 Material Weakness - B
620960 2022-004 Material Weakness - B
620961 2022-004 Material Weakness - B
620962 2022-003 Material Weakness - B
620963 2022-003 Material Weakness - B
620964 2022-003 Material Weakness - B
620965 2022-003 Material Weakness - B
620966 2022-003 Material Weakness - B
620967 2022-003 Material Weakness - B
620968 2022-003 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $1.90M - 0
20.106 Airport Improvement Program $1.17M Yes 0
10.553 School Breakfast Program $1.14M - 0
14.239 Home Investment Partnerships Program $1.02M - 0
21.019 Coronavirus Relief Fund $529,712 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $462,317 - 0
93.788 Opioid Str $417,970 Yes 0
59.075 Shuttered Venue Operators Grant Program $406,997 - 0
84.424 Student Support and Academic Enrichment Program $384,429 - 0
84.367 Improving Teacher Quality State Grants $351,842 - 0
14.218 Community Development Block Grants/entitlement Grants $345,885 Yes 1
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $318,360 - 0
20.205 Highway Planning and Construction $254,992 Yes 0
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $220,582 - 0
10.565 Commodity Supplemental Food Program $217,959 - 0
97.067 Homeland Security Grant Program $202,805 - 0
84.048 Career and Technical Education -- Basic Grants to States $192,387 - 0
10.558 Child and Adult Care Food Program $147,933 - 0
10.559 Summer Food Service Program for Children $144,335 - 0
84.365 English Language Acquisition State Grants $140,927 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $118,000 - 0
10.582 Fresh Fruit and Vegetable Program $81,090 - 0
84.002 Adult Education - Basic Grants to States $72,622 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $71,812 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $70,103 - 0
93.069 Public Health Emergency Preparedness $64,343 - 0
97.072 Tsa Bomb Dogs $60,326 - 0
93.576 Refugee and Entrant Assistance_discretionary Grants $52,248 - 0
93.940 Hiv Prevention Activities_health Department Based $50,683 - 0
84.196 Education for Homeless Children and Youth $47,972 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $44,667 - 0
93.575 Child Care and Development Block Grant $44,431 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $43,080 - 0
16.575 Crime Victim Assistance $41,831 - 0
16.609 Project Safe Neighborhoods $37,149 - 0
84.027 Special Education_grants to States $36,623 Yes 1
84.173 Special Education_preschool Grants $29,206 Yes 1
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $27,622 - 0
97.044 Assistance to Firefighters Grant $26,000 - 0
97.032 Crisis Counseling $25,629 - 0
14.231 Emergency Solutions Grant Program $16,295 - 0
15.904 Historic Preservation Fund Grants-in-Aid $12,500 - 0
84.425 Education Stabilization Fund $8,872 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $6,257 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $5,540 - 0
10.555 National School Lunch Program $3,688 - 0
97.024 Emergency Food and Shelter National Board Program $2,011 - 0
93.817 Hospital Preparedness Program (hpp) Ebola Preparedness and Response Activities $163 - 0
97.039 Hazard Mitigation Grant $147 - 0

Contacts

Name Title Type
LZKCFAJXBAC8 Brendan O'Connell Auditee
2078748300 Scott McIntire Auditor
No contacts on file

Notes to SEFA

Title: Note 3. Donated Personal Protective Equipment (PPE) (Unaudited) Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes thefederal award activity of the City of Portland, Maine (the City) under programs of the federalgovernment for the year ended June 30, 2022. The information in the Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR)Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portionof 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.Expenditures reported on the Schedule are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or are limited toreimbursement.Expenditures awarded from the Federal Emergency Management Agency (FEMA), must bepresented on the Schedule when; 1) FEMA has approved the Citys project worksheet (PW)and 2) the City has incurred the eligible expenditures. The $462,317 reported for DisasterGrants Public Assistance (Presidentially Declared Disasters), AL 97.036, representsexpenditures incurred in prior years that were approved by FEMA during fiscal year 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During fiscal year 2022, the City did not receive donated PPE from federal sources.

Finding Details

2022-004 Improve Time and Effort Documentation Federal Agency: U.S Department of Housing and Urban Development Cluster/Program: Community Development Block Grants/Entitlement Cluster Award Name: Community Development Block Grants/Entitlement AL Number(s): 14.218 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. An employee whose salary is paid in part from federal grant funds and in part from other revenue sources must maintain time and effort distribution records, such as activity reports or timesheets, that document the portion of time spent working on tasks related to the federal grant program and time spent on programs supported by the other revenue sources. Management is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance 22 exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context During our audit, we tested a sample of payroll disbursements in order to determine if adequate time and effort records were maintained. As a result of our testing, we determined that time and effort certifications for the period under audit were not properly prepared. Specifically, time and effort certifications were not provided for salaried individuals paid in part from federal grant funds and in part from other revenue sources. Effect or Potential Effect Time and effort documentation did not meet federal requirements. There is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the following grant are allowable. AL Known or Likely Number Name of Federal Program or Cluster Questioned Costs 14.218 Community Development Block Grants/Entitlement Cluster $179,389 Cause Weaknesses in the design and operation of controls. Recommendation The Planning Department should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-004 Improve Time and Effort Documentation Federal Agency: U.S Department of Housing and Urban Development Cluster/Program: Community Development Block Grants/Entitlement Cluster Award Name: Community Development Block Grants/Entitlement AL Number(s): 14.218 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. An employee whose salary is paid in part from federal grant funds and in part from other revenue sources must maintain time and effort distribution records, such as activity reports or timesheets, that document the portion of time spent working on tasks related to the federal grant program and time spent on programs supported by the other revenue sources. Management is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance 22 exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context During our audit, we tested a sample of payroll disbursements in order to determine if adequate time and effort records were maintained. As a result of our testing, we determined that time and effort certifications for the period under audit were not properly prepared. Specifically, time and effort certifications were not provided for salaried individuals paid in part from federal grant funds and in part from other revenue sources. Effect or Potential Effect Time and effort documentation did not meet federal requirements. There is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the following grant are allowable. AL Known or Likely Number Name of Federal Program or Cluster Questioned Costs 14.218 Community Development Block Grants/Entitlement Cluster $179,389 Cause Weaknesses in the design and operation of controls. Recommendation The Planning Department should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-004 Improve Time and Effort Documentation Federal Agency: U.S Department of Housing and Urban Development Cluster/Program: Community Development Block Grants/Entitlement Cluster Award Name: Community Development Block Grants/Entitlement AL Number(s): 14.218 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. An employee whose salary is paid in part from federal grant funds and in part from other revenue sources must maintain time and effort distribution records, such as activity reports or timesheets, that document the portion of time spent working on tasks related to the federal grant program and time spent on programs supported by the other revenue sources. Management is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance 22 exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context During our audit, we tested a sample of payroll disbursements in order to determine if adequate time and effort records were maintained. As a result of our testing, we determined that time and effort certifications for the period under audit were not properly prepared. Specifically, time and effort certifications were not provided for salaried individuals paid in part from federal grant funds and in part from other revenue sources. Effect or Potential Effect Time and effort documentation did not meet federal requirements. There is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the following grant are allowable. AL Known or Likely Number Name of Federal Program or Cluster Questioned Costs 14.218 Community Development Block Grants/Entitlement Cluster $179,389 Cause Weaknesses in the design and operation of controls. Recommendation The Planning Department should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-004 Improve Time and Effort Documentation Federal Agency: U.S Department of Housing and Urban Development Cluster/Program: Community Development Block Grants/Entitlement Cluster Award Name: Community Development Block Grants/Entitlement AL Number(s): 14.218 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. An employee whose salary is paid in part from federal grant funds and in part from other revenue sources must maintain time and effort distribution records, such as activity reports or timesheets, that document the portion of time spent working on tasks related to the federal grant program and time spent on programs supported by the other revenue sources. Management is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance 22 exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context During our audit, we tested a sample of payroll disbursements in order to determine if adequate time and effort records were maintained. As a result of our testing, we determined that time and effort certifications for the period under audit were not properly prepared. Specifically, time and effort certifications were not provided for salaried individuals paid in part from federal grant funds and in part from other revenue sources. Effect or Potential Effect Time and effort documentation did not meet federal requirements. There is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the following grant are allowable. AL Known or Likely Number Name of Federal Program or Cluster Questioned Costs 14.218 Community Development Block Grants/Entitlement Cluster $179,389 Cause Weaknesses in the design and operation of controls. Recommendation The Planning Department should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.
2022-003 Improve Controls and Documentation over Payroll Process Federal Agency: U.S Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Local Entitlement AL Number(s): 84.027/84.173 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S Department of Education Cluster/Program: Education Stabilization Fund Cluster Award Name: Elementary and Secondary Emergency Relief Funds AL Number(s): 84.425D/84.425U Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Code of Federal Regulations Section 200.403(g) states that for costs to be allowable under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition and Context In fiscal year 2022, our sample testing disclosed that amounts paid to employees could not be recalculated and documentation to ensure amounts paid were complete and accurate was not available. Effect or Potential Effect We were unable to conclude on the allowability, validity, or completeness of payroll charged to the grants, and as a result there is a risk that amounts charged to federal awards may not be allowable in accordance with applicable cost principles. 21 Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the applicable grants are allowable. AL Known or Likely Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $1,900,742 84.425D/84.425U Education Stabilization Fund Cluster $8,334,464 Cause Weaknesses in the design and operation of controls over payroll processing. Recommendation The School Department must re-design the internal controls surrounding how payroll is processed to provide assurance that processing is complete, accurate and valid. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.