FAC Explorer

Finding 1161437 (2024-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-10-27
Audit: 371295
Organization: City of Auburn, Maine (ME)
Auditor: RUNYON KERSTEEN OUELLETTE

AI Summary

  • Core Issue: The City submitted inaccurate financial data in its quarterly reports for the State and Local Fiscal Recovery Fund, leading to material misstatements.
  • Impacted Requirements: The City must ensure accurate reporting as mandated by the U.S. Department of the Treasury to maintain transparency and accountability.
  • Recommended Follow-Up: Improve internal controls by centralizing report reviews, enhancing inter-department coordination, and providing staff training on expenditure reporting.

Finding Text

2024-006 U.S. Department of the Treasury, For the period July 1, 2023, through June 30, 2024, Assistance Listing #21.027 – Internal Controls over State and Local Fiscal Recovery Fund Criteria: As a recipient of State and Local Fiscal Recovery Funds (SLRF), the City is required to submit quarterly Project and Expenditure Reports to the U.S. Department of the Treasury. These submissions report cumulative and quarterly obligations and expenditures by project, project income, and subaward and vendor information. Condition: During the audit of the SLFRF program, it was noted that the City submitted expenditure reports containing inaccurate financial data. Several reported amounts did not reconcile with the underlying accounting records, resulting in material misstatements in the quarterly project and expenditure reports submitted to the U.S. Department of the Treasury. Cause: The inaccuracies were primarily due to the volume and complexity of City projects funded under the CSLFRF program. The decentralized nature of project management and reporting across departments contributed to challenges in compiling accurate and complete expenditure data. Effect: Inaccurate reporting may impair transparency and accountability and could affect future oversight actions by the federal awarding agency. Recommendation: We recommend that the City enhance its internal controls over SLFRF reporting by implementing centralized review procedures, improving coordination among departments, and providing additional training to staff responsible for compiling and submitting expenditure reports. We also recommend a secondary review of the reported encumbrances and expenditures by an individual in the accounting department before the report is transmitted to the Treasury. Questioned Costs: None.

Corrective Action Plan

Management Response/Corrective Action Plan: Additional reports will be run to verify totals before filings of quarterly reports, paying particular attention to end of year and the needed reversal of the prior year payroll accrual. Errors found in reports will be corrected in subsequent records as allowable under Department of Treasury grant reporting guidelines.

Categories

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring

Other Findings in this Audit

  • 1161422 2024-009
    Material Weakness Repeat
  • 1161423 2024-009
    Material Weakness Repeat
  • 1161424 2024-009
    Material Weakness Repeat
  • 1161425 2024-009
    Material Weakness Repeat
  • 1161426 2024-009
    Material Weakness Repeat
  • 1161427 2024-009
    Material Weakness Repeat
  • 1161428 2024-009
    Material Weakness Repeat
  • 1161429 2024-008
    Material Weakness Repeat
  • 1161430 2024-008
    Material Weakness Repeat
  • 1161431 2024-008
    Material Weakness Repeat
  • 1161432 2024-010
    Material Weakness Repeat
  • 1161433 2024-010
    Material Weakness Repeat
  • 1161434 2024-010
    Material Weakness Repeat
  • 1161435 2024-011
    Material Weakness Repeat
  • 1161436 2024-011
    Material Weakness Repeat
  • 1161438 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds $3.17M
84.425 COVID-19 - Elementary and Secondary School Emergency Relief III $2.28M
20.205 Highway Planning and Construction - Mill Street and Main Street $1.96M
14.218 Community Development Block Grant - Entitlement $1.55M
84.010 Title IA $1.07M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $949,284
84.027 Special Education - Grants to States (IDEA, Part B) $708,495
20.205 Highway Planning and Construction - Hotel Rd $539,369
10.553 SCHOOL BREAKFAST PROGRAM $313,345
14.905 LEAD HAZARD REDUCTION DEMONSTRATION GRANT PROGRAM $230,209
84.367 Title IIA - Supporting Effective Instruction $225,545
84.287 21st Century - Community Learning Center $204,260
14.239 COVID-19 - Home Investment Partnership Program $165,200
84.425 COVID-19 - Literacy Grant $143,570
14.239 Home Investment Partnership Program $120,454
10.555 Donated Commodities $117,497
84.424 Title IV - Student Support and Academic Enrichment $78,041
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $77,002
10.555 State Administrative Expenses for Child Nutrition: Supply Chain Assistance $74,210
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $68,647
16.922 EQUITABLE SHARING PROGRAM $59,073
84.425 COVID-19 - Multilingual Learners Experiencing Homelessness $58,877
14.218 COVID-19 - Community Development Block Grant - Entitlement $55,722
84.425 COVID-19 - Elementary and Secondary School Emergency Relief II $53,649
97.067 HOMELAND SECURITY GRANT PROGRAM $29,560
20.205 Highway Planning and Construction - Turner Street Safety $27,758
84.365 Title III - Language Acquisition $26,064
84.173 Special Education - Preschool Grants (IDEA Preschool) $23,614
20.205 Highway Planning and Construction - Traffic Signals $21,916
10.558 Child and Adult Care Food Program $20,736
20.205 Highway Planning and Construction - Turner Dennison $17,988
84.002 Adult Basic Education $15,502
20.600 Speed Enforcement Program $11,512
84.010 Title IA - Program Improvement $10,961
16.607 Bullet Proof Vest $10,865
10.675 Project Canopy: Urban and Community Forestry Program $7,876
84.425 COVID-19 - Homeless Children and Youth II $7,784
16.738 Edward Byrne Justice Assistance Grant $6,458
10.649 COVID-19 - Pandemic EBT Administrative Costs: SNAP $5,224
10.555 After School Snack Program $953
14.218 Community Development Block Grant - Entitlement - School Department $911