FAC Explorer

Finding 1151706 (2024-002)

Significant Deficiency
Requirement
I
Questioned Costs
$1
Year
2024
Accepted
2025-08-29
Audit: 365311
Organization: City of Lowell (MA)
Auditor: Cbiz CPAS

AI Summary

  • Core Issue: Procurement procedures for federal grants were not followed, leading to significant deficiencies in internal controls.
  • Impacted Requirements: Compliance with OMB's Uniform Guidance is essential for federal awards, specifically regarding procurement suspension and debarment.
  • Recommended Follow-Up: Address internal control weaknesses to ensure compliance with federal procurement requirements and mitigate risks of improper vendor selection.

Finding Text

2024-002 Improve Procurement Procedures 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: Procurement Suspension & Debarment Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (UG) requires that grant recipients follow procurement procedures for the acquisition of property or services under a federal award. Management is also responsible for establishing and maintaining effective internal controls 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 A sample of procurement transactions were tested in order to determine if appropriate procedures were performed in line with Uniform Guidance procurement requirements. As a result of our testing, it was determined that one of our three selections for services paid for by the Special Education Grants to States and Preschool Grants did not follow UG procurement procedures. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, there is a risk that procurements may be awarded to vendors in a manner that is not consistent with federal procurement requirements. Known questioned costs are reported as follows: AL Number(s) Name of Federal Program or Cluster Questioned Costs 84.027/84.173 Special Education Cluster $50,916 Recommendation The City should address the weaknesses in internal controls noted above in order to ensure that federal procurements are conducted in accordance with federal and state requirements. 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 Procurement, Suspension & Debarment

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
  • 1151702 2024-001
    Material Weakness Repeat
  • 1151703 2024-001
    Material Weakness Repeat
  • 1151704 2024-002
    Significant Deficiency
  • 1151705 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