FAC Explorer

Finding 1130026 (2024-009)

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: 55% of tested disbursements for the Equitable Sharing Program lacked proper review and approval by knowledgeable staff, particularly for credit card purchases.
  • Impacted Requirements: Internal controls under the Uniform Guidance are insufficient, risking noncompliance and potential repayment of grant funds.
  • Recommended Follow-Up: Review and update policies for credit card reconciliations to ensure knowledgeable staff approve expenditures before they enter the accounting system.

Finding Text

Criteria: Administrative requirements under the Uniform Guidance require grantees to develop internal controls and procedures sufficient to prevent noncompliance. Condition: Twenty-three of forty-two disbursements tested (55%) for the Equitable Sharing Program did not have documented review and approval by a knowledgeable program staff person. 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 Management’s Response/Corrective Action Plan: This program received significantly more distributions in 2024 than the City had received in the past. The funds initially were not considered to be federal since the source was private companies, but staff has since taken required grant agency training. The City is implementing workflow for purchasing and credit card transactions which will provide electronic approvals and the ability to attach receipts.

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
  • 1130019 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

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