Audit 7220

FY End
2022-06-30
Total Expended
$23.20M
Findings
38
Programs
22
Organization: City of Medford (MA)
Year: 2022 Accepted: 2023-12-18

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
4958 2022-007 Significant Deficiency Yes I
4959 2022-007 Significant Deficiency Yes I
4960 2022-007 Significant Deficiency Yes I
4961 2022-007 Significant Deficiency Yes I
4962 2022-005 - - N
4963 2022-005 - - N
4964 2022-003 - - L
4965 2022-006 - Yes P
4966 2022-006 - Yes P
4967 2022-006 - Yes P
4968 2022-006 - Yes P
4969 2022-004 Significant Deficiency - B
4970 2022-004 Significant Deficiency - B
4971 2022-004 Significant Deficiency - B
4972 2022-004 Significant Deficiency - B
4973 2022-004 Significant Deficiency - B
4974 2022-004 Significant Deficiency - B
4975 2022-004 Significant Deficiency - B
4976 2022-004 Significant Deficiency - B
581400 2022-007 Significant Deficiency Yes I
581401 2022-007 Significant Deficiency Yes I
581402 2022-007 Significant Deficiency Yes I
581403 2022-007 Significant Deficiency Yes I
581404 2022-005 - - N
581405 2022-005 - - N
581406 2022-003 - - L
581407 2022-006 - Yes P
581408 2022-006 - Yes P
581409 2022-006 - Yes P
581410 2022-006 - Yes P
581411 2022-004 Significant Deficiency - B
581412 2022-004 Significant Deficiency - B
581413 2022-004 Significant Deficiency - B
581414 2022-004 Significant Deficiency - B
581415 2022-004 Significant Deficiency - B
581416 2022-004 Significant Deficiency - B
581417 2022-004 Significant Deficiency - B
581418 2022-004 Significant Deficiency - B

Contacts

Name Title Type
DM7UUKSVYMR3 Bob Dickinson Auditee
7813932413 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 Medford, Massachusetts (the City) 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, 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.

Finding Details

U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster – CFDA 14.218 Criteria: Per 24 CFR sections 58.1, 58.22, 58.34 58.35 and 570.604, projects must have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from environmental certification requirements. Condition: For one project, an invoice for design services performed in December 2021 was paid before the environmental review was completed on February 9, 2022. Also, the determination of categorical exclusion in the City’s files was not signed and dated. Cause: The City has not implemented procedures to ensure that environmental review files are complete before projects are started. Effect: The City is not in compliance with environmental review requirements. Questioned Costs: $4,785.41 Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to ensure that environmental reviews are completed and properly documented before funds are obligated to a project. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster – CFDA 14.218 Criteria: Per 24 CFR sections 58.1, 58.22, 58.34 58.35 and 570.604, projects must have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from environmental certification requirements. Condition: For one project, an invoice for design services performed in December 2021 was paid before the environmental review was completed on February 9, 2022. Also, the determination of categorical exclusion in the City’s files was not signed and dated. Cause: The City has not implemented procedures to ensure that environmental review files are complete before projects are started. Effect: The City is not in compliance with environmental review requirements. Questioned Costs: $4,785.41 Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to ensure that environmental reviews are completed and properly documented before funds are obligated to a project. Views of Responsible Official: Management agrees with the finding.
U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – CFDA 21.027 Criteria: 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. Per 2 CFR 200.1, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment. Condition: On the June 30, 2022 Project and Expenditure report the City reported $7,292,100 of obligations for expenditures that had yet to be specifically identified nor met the definition of an obligation. Cause: The City did not have a clear understanding of the reporting requirements for obligations. Effect: The City overstated the amounts obligated in the June 30, 2022 Project and Expenditure report. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to only report obligations on the Project and Expenditure reporting for items that meet the federal criteria for reporting as an obligation. Views of Responsible Official: Management agrees with the finding.
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 Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City’s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.
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 Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City’s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.
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 Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City’s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.
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 Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City’s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster – CFDA 14.218 Criteria: Per 24 CFR sections 58.1, 58.22, 58.34 58.35 and 570.604, projects must have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from environmental certification requirements. Condition: For one project, an invoice for design services performed in December 2021 was paid before the environmental review was completed on February 9, 2022. Also, the determination of categorical exclusion in the City’s files was not signed and dated. Cause: The City has not implemented procedures to ensure that environmental review files are complete before projects are started. Effect: The City is not in compliance with environmental review requirements. Questioned Costs: $4,785.41 Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to ensure that environmental reviews are completed and properly documented before funds are obligated to a project. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster – CFDA 14.218 Criteria: Per 24 CFR sections 58.1, 58.22, 58.34 58.35 and 570.604, projects must have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from environmental certification requirements. Condition: For one project, an invoice for design services performed in December 2021 was paid before the environmental review was completed on February 9, 2022. Also, the determination of categorical exclusion in the City’s files was not signed and dated. Cause: The City has not implemented procedures to ensure that environmental review files are complete before projects are started. Effect: The City is not in compliance with environmental review requirements. Questioned Costs: $4,785.41 Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to ensure that environmental reviews are completed and properly documented before funds are obligated to a project. Views of Responsible Official: Management agrees with the finding.
U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – CFDA 21.027 Criteria: 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. Per 2 CFR 200.1, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment. Condition: On the June 30, 2022 Project and Expenditure report the City reported $7,292,100 of obligations for expenditures that had yet to be specifically identified nor met the definition of an obligation. Cause: The City did not have a clear understanding of the reporting requirements for obligations. Effect: The City overstated the amounts obligated in the June 30, 2022 Project and Expenditure report. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to only report obligations on the Project and Expenditure reporting for items that meet the federal criteria for reporting as an obligation. Views of Responsible Official: Management agrees with the finding.
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 Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City’s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.
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 Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City’s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.
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 Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City’s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.
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 Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City’s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.
U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.