FAC Explorer

Finding 1151702 (2024-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2025-08-29
Audit: 365311
Organization: City of Lowell (MA)
Auditor: Cbiz CPAS

AI Summary

  • Core Issue: Time and effort certifications were not maintained for all employees tested, leading to potential non-compliance with federal requirements.
  • Impacted Requirements: Compliance with allowable costs and activities as per federal regulations, specifically for Title I and Special Education grants.
  • Recommended Follow-Up: Strengthen internal controls to ensure all federal award transactions are properly documented and compliant with cost principles.

Finding Text

2024-001 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2023, 2024 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States and Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2022, 2023, 2024 Compliance Requirement: Activities Allowed or Unallowed and 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. Management of the City 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. 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 A sample of payroll disbursements were tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing, it was determined that time and effort certifications were not maintained for all thirty-four employees tested in the Title I program, and twenty-five employees tested in the Special Education Cluster. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, 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 applicable grants are allowable. AL Number(s) Name of Federal Program or Cluster Questioned Costs 84.010 Title I Grants to Local Educational Agencies $4,663,279 84.027/84.173 Special Education Cluster $2,309,479 Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal award transactions are allowable and in accordance with the applicable cost principles. Views of Responsible Official and Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

Categories

Questioned Costs Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 575249 2024-001
    Material Weakness Repeat
  • 575250 2024-001
    Material Weakness Repeat
  • 575251 2024-001
    Material Weakness Repeat
  • 575252 2024-001
    Material Weakness Repeat
  • 575253 2024-001
    Material Weakness Repeat
  • 575254 2024-001
    Material Weakness Repeat
  • 575255 2024-001
    Material Weakness Repeat
  • 575256 2024-001
    Material Weakness Repeat
  • 575257 2024-001
    Material Weakness Repeat
  • 575258 2024-001
    Material Weakness Repeat
  • 575259 2024-001
    Material Weakness Repeat
  • 575260 2024-001
    Material Weakness Repeat
  • 575261 2024-001
    Material Weakness Repeat
  • 575262 2024-002
    Significant Deficiency
  • 575263 2024-002
    Significant Deficiency
  • 575264 2024-002
    Significant Deficiency
  • 575265 2024-002
    Significant Deficiency
  • 575266 2024-002
    Significant Deficiency
  • 575267 2024-002
    Significant Deficiency
  • 575268 2024-002
    Significant Deficiency
  • 575269 2024-002
    Significant Deficiency
  • 1151691 2024-001
    Material Weakness Repeat
  • 1151692 2024-001
    Material Weakness Repeat
  • 1151693 2024-001
    Material Weakness Repeat
  • 1151694 2024-001
    Material Weakness Repeat
  • 1151695 2024-001
    Material Weakness Repeat
  • 1151696 2024-001
    Material Weakness Repeat
  • 1151697 2024-001
    Material Weakness Repeat
  • 1151698 2024-001
    Material Weakness Repeat
  • 1151699 2024-001
    Material Weakness Repeat
  • 1151700 2024-001
    Material Weakness Repeat
  • 1151701 2024-001
    Material Weakness Repeat
  • 1151703 2024-001
    Material Weakness Repeat
  • 1151704 2024-002
    Significant Deficiency
  • 1151705 2024-002
    Significant Deficiency
  • 1151706 2024-002
    Significant Deficiency
  • 1151707 2024-002
    Significant Deficiency
  • 1151708 2024-002
    Significant Deficiency
  • 1151709 2024-002
    Significant Deficiency
  • 1151710 2024-002
    Significant Deficiency
  • 1151711 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $29.85M
10.555 National School Lunch Program $7.86M
14.218 Community Development Block Grants/entitlement Grants $3.42M
10.553 School Breakfast Program $3.29M
15.916 Outdoor Recreation Acquisition, Development and Planning $1.00M
21.019 Covid-19 Coronavirus Relief Fund $631,441
14.239 Home Investment Partnerships Program $439,942
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $398,879
10.558 Child and Adult Care Food Program $385,438
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $383,887
10.559 Summer Food Service Program for Children $342,602
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $318,959
14.231 Emergency Solutions Grant Program $279,157
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $262,115
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $211,982
16.922 Equitable Sharing Program $208,764
14.231 Covid-19 Emergency Solutions Grant Program $181,993
93.959 Block Grants for Prevention and Treatment of Substance Abuse $180,968
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $175,095
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $147,107
17.278 Wioa Dislocated Worker Formula Grants $145,457
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $128,455
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $114,774
14.881 Moving to Work Demonstration Program $98,671
93.788 Opioid Str $88,967
16.609 Project Safe Neighborhoods $87,392
84.002 Adult Education - Basic Grants to States $84,748
84.371 Comprehensive Literacy Development $75,908
17.258 Wioa Adult Program $72,103
16.710 Public Safety Partnership and Community Policing Grants $72,000
84.027 Special Education Grants to States $59,640
97.042 Emergency Management Performance Grants $51,565
84.287 Twenty-First Century Community Learning Centers $35,461
16.738 Edward Byrne Memorial Justice Assistance Grant Program $32,279
84.010 Title I Grants to Local Educational Agencies $31,180
20.600 State and Community Highway Safety $28,697
84.365 English Language Acquisition State Grants $28,126
10.582 Fresh Fruit and Vegetable Program $22,652
20.616 National Priority Safety Programs $22,282
14.895 Jobs-Plus Pilot Initiative $21,505
93.738 Pphf: Racial and Ethnic Approaches to Community Health Program Financed Solely by Public Prevention and Health Funds $20,579
17.245 Trade Adjustment Assistance $15,842
17.801 Jobs for Veterans State Grants $15,213
84.196 Education for Homeless Children and Youth $14,094
16.203 Promoting Evidence Integration in Sex Offender Management Discretionary Grant Program $13,479
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $13,165
84.173 Special Education Preschool Grants $9,177
84.424 Student Support and Academic Enrichment Program $8,777
84.425 Covid-19 Education Stabilization Fund $7,716
17.285 Registered Apprenticeship $5,461
17.207 Employment Service/wagner-Peyser Funded Activities $3,752
84.048 Career and Technical Education -- Basic Grants to States $3,345
17.259 Wioa Youth Activities $2,408
17.225 Unemployment Insurance $563