FAC Explorer

Finding 1080199 (2022-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-10-25
Audit: 326022
Organization: City of Portland Maine (ME)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The City reported expenditures for the American Rescue Plan funds that were understated by about $15.6 million.
  • Impacted Requirements: This finding indicates a significant deficiency in internal controls over compliance with federal reporting requirements.
  • Recommended Follow-Up: The City needs to ensure accurate reporting of expenditures in all future Project and Expenditures Reports to meet compliance standards.

Finding Text

2022-005 Improve Compliance with American Rescue Plan Reporting Federal Agency: U.S Department of Treasury Cluster/Program: State and Local Fiscal Recovery Funds Award Name: State and Local Fiscal Recovery Funds AL Number(s): 21.027 Award Year: 2022 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Grantees are required to report financial information to the grantor agency in accordance with the requirements set forth by the Federal awarding agency. 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 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 We tested the City’s use of American Rescue Plan Act funds with amounts reported to the Treasury Department as of June 30, 2022. We determined that life-to-date expenditures reported were understated by approximately $15.6 million. Effect or Potential Effect The City is not in compliance with grant requirements over reporting. No questioned costs are noted as the issue relates only to the amount reported to the Treasury Department. Cause Weaknesses in the operation of controls. Recommendation The City should accurately report life-to-date expenditures in quarterly and annual Project and Expenditures Reports in order to comply with reporting guidelines. 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.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 503755 2022-003
    Material Weakness
  • 503756 2022-004
    Material Weakness
  • 503757 2022-005
    Significant Deficiency
  • 503758 2022-003
    Material Weakness
  • 503759 2022-003
    Material Weakness
  • 1080197 2022-003
    Material Weakness
  • 1080198 2022-004
    Material Weakness
  • 1080200 2022-003
    Material Weakness
  • 1080201 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $16.84M
84.010 Title I Grants to Local Educational Agencies $1.90M
20.106 Airport Improvement Program $1.17M
10.553 School Breakfast Program $1.14M
14.239 Home Investment Partnerships Program $1.02M
21.019 Coronavirus Relief Fund $529,712
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $462,317
93.788 Opioid Str $417,970
59.075 Shuttered Venue Operators Grant Program $406,997
84.424 Student Support and Academic Enrichment Program $384,429
84.367 Improving Teacher Quality State Grants $351,842
14.218 Community Development Block Grants/entitlement Grants $345,885
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $318,360
20.205 Highway Planning and Construction $254,992
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $220,582
10.565 Commodity Supplemental Food Program $217,959
97.067 Homeland Security Grant Program $202,805
84.048 Career and Technical Education -- Basic Grants to States $192,387
10.558 Child and Adult Care Food Program $147,933
10.559 Summer Food Service Program for Children $144,335
84.365 English Language Acquisition State Grants $140,927
16.034 Coronavirus Emergency Supplemental Funding Program $118,000
10.582 Fresh Fruit and Vegetable Program $81,090
84.002 Adult Education - Basic Grants to States $72,622
93.959 Block Grants for Prevention and Treatment of Substance Abuse $71,812
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $70,103
93.069 Public Health Emergency Preparedness $64,343
97.072 Tsa Bomb Dogs $60,326
93.576 Refugee and Entrant Assistance_discretionary Grants $52,248
93.940 Hiv Prevention Activities_health Department Based $50,683
84.196 Education for Homeless Children and Youth $47,972
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $44,667
93.575 Child Care and Development Block Grant $44,431
93.136 Injury Prevention and Control Research and State and Community Based Programs $43,080
16.575 Crime Victim Assistance $41,831
16.609 Project Safe Neighborhoods $37,149
84.027 Special Education_grants to States $36,623
84.173 Special Education_preschool Grants $29,206
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $27,622
97.044 Assistance to Firefighters Grant $26,000
97.032 Crisis Counseling $25,629
14.231 Emergency Solutions Grant Program $16,295
15.904 Historic Preservation Fund Grants-in-Aid $12,500
84.425 Education Stabilization Fund $8,872
16.738 Edward Byrne Memorial Justice Assistance Grant Program $5,540
10.555 National School Lunch Program $3,688
97.024 Emergency Food and Shelter National Board Program $2,011
93.817 Hospital Preparedness Program (hpp) Ebola Preparedness and Response Activities $163
97.039 Hazard Mitigation Grant $147