FAC Explorer

Finding 1130019 (2024-008)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 352169
Organization: City of South Portland, Maine (ME)
Auditor: Runyon Kersteen Ouellette

AI Summary

  • Core Issue: 27% of tested disbursements for Federal Transit Grants lacked proper review and approval by knowledgeable staff.
  • Impacted Requirements: Internal controls under Uniform Guidance are insufficient, risking noncompliance and potential repayment of grant funds.
  • Recommended Follow-Up: Revise policies to ensure knowledgeable staff approve credit card purchases related to grants before they are recorded in the accounting system.

Finding Text

2024-008 U.S. Department of Transportation, Assistance Listing #20.507 and #20.526, Federal Transit Cluster Formula Grants for the period July 1, 2023 through June 30, 2024 Criteria: Administrative requirements under the Uniform Guidance require grantees to develop internal controls and procedures sufficient to prevent noncompliance. Condition: Sixteen of sixty disbursements tested (27%) for the Federal Transit Cluster Formula Grant did not have documented review and approval by a knowledgeable program staff person. In addition, two of sixty disbursements totaling $68.73 tested for the program had no supporting documentation. All exceptions noted were related to credit card purchases. Cause: Control policies are not consistent across the organization and do not require a knowledgeable program person to document their review of credit card expenditures coded to Federal grants prior to entry into the accounting system. Effect: Unallowable costs may be charged to grants which may lead to repayment of grant funds. Recommendation: We recommend reviewing policies and procedures regarding monthly credit card reconciliations to ensure that a knowledgeable program person is approving the coding of credit card purchases to grant funds prior to their entry into the accounting system. Questioned Costs: None

Categories

Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Other Findings in this Audit

  • 553572 2024-007
    Significant Deficiency
  • 553573 2024-007
    Significant Deficiency
  • 553574 2024-007
    Significant Deficiency
  • 553575 2024-008
    Significant Deficiency
  • 553576 2024-008
    Significant Deficiency
  • 553577 2024-008
    Significant Deficiency
  • 553578 2024-005
    Material Weakness
  • 553579 2024-006
    Material Weakness Repeat
  • 553580 2024-006
    Material Weakness Repeat
  • 553581 2024-006
    Material Weakness Repeat
  • 553582 2024-006
    Material Weakness Repeat
  • 553583 2024-006
    Material Weakness Repeat
  • 553584 2024-009
    Significant Deficiency
  • 1130014 2024-007
    Significant Deficiency
  • 1130015 2024-007
    Significant Deficiency
  • 1130016 2024-007
    Significant Deficiency
  • 1130017 2024-008
    Significant Deficiency
  • 1130018 2024-008
    Significant Deficiency
  • 1130020 2024-005
    Material Weakness
  • 1130021 2024-006
    Material Weakness Repeat
  • 1130022 2024-006
    Material Weakness Repeat
  • 1130023 2024-006
    Material Weakness Repeat
  • 1130024 2024-006
    Material Weakness Repeat
  • 1130025 2024-006
    Material Weakness Repeat
  • 1130026 2024-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $3.26M
84.425 Covid-19 - Elementary and Secondary School Emergency Relief III $2.32M
84.027 Special Education State Grants Individuals with Disabilities Act $1.15M
84.010 Title Ia, Disadvantaged $711,957
20.507 Federal Transit Formula Grants $590,783
20.507 Covid-19 - Federal Transit Formula Grants $561,181
16.922 Equitable Sharing Program $540,610
10.555 National School Lunch Program $524,487
14.218 Cdbg - Entitlement Community (cdbg - Entitlement Grants Cluster) $299,689
10.553 Breakfast Program $241,116
84.196 McKinney-Vento Education for Homeless Children and Youth $235,228
84.425 Covid-19 - Maine Outdoor Learning Initiative $192,559
84.425 Covid-19 - Multilingual Learners Experiencing Homelessness $171,898
84.027 Covid-19 - Special Education State Grants Individuals with Disabilities Act - Arp $143,173
84.424 Title Iv, Student Support and Academic Enrichment Program $137,710
21.027 Covid-19 Extended Learning Opportunities (seelo) $129,091
97.067 Homeland Security Grant Program- Fy 21 $115,717
10.555 Food Donation Program $114,742
21.027 Covid-19 Workforce Development $107,861
93.276 Drug Free Communities Support Program (2024 Grant) $89,188
20.205 Highway Planning and Construction $79,680
10.582 Fresh Fruit and Vegetables $73,732
10.555 State Administrative Expenses for Child Nutrition: Supply Chain Assistance $71,000
84.367 Title Iia, Supporting Effective Instruction $66,996
66.818 Brownfields Multipurpose $63,796
84.365 Title Iii, English Language Acquisition Grant $53,938
84.425 Covid-19 - Literacy Grant $43,491
21.027 Covid-19 Workforce Development Admin $36,901
93.276 Drug Free Communities Support Program (2023 Grant) $31,732
10.559 Summer Food Service Program $28,990
97.067 Homeland Security Grant Program- Fy 23 $24,816
21.027 Covid-19 Pre-K Expansion Grant $23,412
84.173 Preschool $21,130
84.002 Adult Basic Education $18,829
84.425 Covid-19 - Summer Reservation Subgrant $17,728
97.004 County Hazmat Grant $17,113
11.419 Coastal Zone Management Administration $16,888
97.067 Homeland Security Grant Program- Fy 22 $13,085
97.067 Homeland Security Grant Program- Fy 20 $11,850
20.526 Bus and Bus Facilities Formula Grants $6,246
10.649 Covid-19 - Pandemic Ebt Administrative Costs: Snap $5,224
16.738 Justice Assistance Grant $400
10.558 Child and Adult Care Food Program $336