FAC Explorer

Finding 1166097 (2023-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-12-22
Audit: 376863
Organization: City of Lynn (MA)
Auditor: MARCUM LLP

AI Summary

  • Core Issue: Internal controls over reporting for federal funds are insufficient, leading to discrepancies between submitted reports and the general ledger.
  • Impacted Requirements: Compliance with OMB’s Uniform Administrative Requirements is not met, risking inaccuracies in federal reporting.
  • Recommended Follow-Up: Implement stronger internal control procedures to ensure all reports are thoroughly reviewed and accurate before submission.

Finding Text

2023-006 Improve Internal Controls Over Reporting Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds AL Number(s): 21.027 Award Year: 2022 Compliance Requirement: Reporting 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 design internal controls to ensure that reports submitted to the State/Federal government are complete and accurate. 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 Key line items, specifically current period expenditures and total cumulative expenditures, included on the project and expenditure report submitted for quarters 3 (July – September) and 4 (October – December) did not agree to the general ledger. In addition, there was no documented evidence of review of these reports prior to submission. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, key line items on reports submitted may not be complete or accurate. No questioned costs are reported as it is not quantifiable. Recommendation The City should design and implement an internal control procedure to ensure that reports submitted are complete and accurate. 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.

Corrective Action Plan

Audit Finding Reference: 2023-006 Improve Internal Controls Over Reporting (Significant Deficiency) Planned Corrective Action: The City strives to report accurate expenditures and regretfully an outside consultant was coordinating these tasks and working off site. Regretfully, I can only address this finding as learning experience. We cannot rely on a vendor to submit expenditure information without proper city sign off. This finding has been addressed moving forward. Our ARP A compliance office has been on board since this finding. Management is striving to have this finding removed prior to the next review due to the protocols they have implemented. Name of Contact Person and Completion Date Stephen T .. Spencer, City Comptroller December 31, 2025

Categories

Allowable Costs / Cost Principles Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1166022 2023-001
    Material Weakness Repeat
  • 1166023 2023-001
    Material Weakness Repeat
  • 1166024 2023-001
    Material Weakness Repeat
  • 1166025 2023-001
    Material Weakness Repeat
  • 1166026 2023-001
    Material Weakness Repeat
  • 1166027 2023-001
    Material Weakness Repeat
  • 1166028 2023-001
    Material Weakness Repeat
  • 1166029 2023-001
    Material Weakness Repeat
  • 1166030 2023-001
    Material Weakness Repeat
  • 1166031 2023-001
    Material Weakness Repeat
  • 1166032 2023-001
    Material Weakness Repeat
  • 1166033 2023-001
    Material Weakness Repeat
  • 1166034 2023-001
    Material Weakness Repeat
  • 1166035 2023-001
    Material Weakness Repeat
  • 1166036 2023-001
    Material Weakness Repeat
  • 1166037 2023-001
    Material Weakness Repeat
  • 1166038 2023-001
    Material Weakness Repeat
  • 1166039 2023-001
    Material Weakness Repeat
  • 1166040 2023-001
    Material Weakness Repeat
  • 1166041 2023-001
    Material Weakness Repeat
  • 1166042 2023-001
    Material Weakness Repeat
  • 1166043 2023-001
    Material Weakness Repeat
  • 1166044 2023-001
    Material Weakness Repeat
  • 1166045 2023-001
    Material Weakness Repeat
  • 1166046 2023-001
    Material Weakness Repeat
  • 1166047 2023-001
    Material Weakness Repeat
  • 1166048 2023-001
    Material Weakness Repeat
  • 1166049 2023-001
    Material Weakness Repeat
  • 1166050 2023-002
    Material Weakness Repeat
  • 1166051 2023-002
    Material Weakness Repeat
  • 1166052 2023-002
    Material Weakness Repeat
  • 1166053 2023-002
    Material Weakness Repeat
  • 1166054 2023-002
    Material Weakness Repeat
  • 1166055 2023-002
    Material Weakness Repeat
  • 1166056 2023-002
    Material Weakness Repeat
  • 1166057 2023-002
    Material Weakness Repeat
  • 1166058 2023-002
    Material Weakness Repeat
  • 1166059 2023-002
    Material Weakness Repeat
  • 1166060 2023-002
    Material Weakness Repeat
  • 1166061 2023-002
    Material Weakness Repeat
  • 1166062 2023-002
    Material Weakness Repeat
  • 1166063 2023-002
    Material Weakness Repeat
  • 1166064 2023-002
    Material Weakness Repeat
  • 1166065 2023-002
    Material Weakness Repeat
  • 1166066 2023-002
    Material Weakness Repeat
  • 1166067 2023-002
    Material Weakness Repeat
  • 1166068 2023-002
    Material Weakness Repeat
  • 1166069 2023-002
    Material Weakness Repeat
  • 1166070 2023-003
    Material Weakness Repeat
  • 1166071 2023-003
    Material Weakness Repeat
  • 1166072 2023-003
    Material Weakness Repeat
  • 1166073 2023-003
    Material Weakness Repeat
  • 1166074 2023-003
    Material Weakness Repeat
  • 1166075 2023-003
    Material Weakness Repeat
  • 1166076 2023-003
    Material Weakness Repeat
  • 1166077 2023-003
    Material Weakness Repeat
  • 1166078 2023-003
    Material Weakness Repeat
  • 1166079 2023-004
    Material Weakness Repeat
  • 1166080 2023-004
    Material Weakness Repeat
  • 1166081 2023-004
    Material Weakness Repeat
  • 1166082 2023-004
    Material Weakness Repeat
  • 1166083 2023-004
    Material Weakness Repeat
  • 1166084 2023-004
    Material Weakness Repeat
  • 1166085 2023-004
    Material Weakness Repeat
  • 1166086 2023-004
    Material Weakness Repeat
  • 1166087 2023-004
    Material Weakness Repeat
  • 1166088 2023-004
    Material Weakness Repeat
  • 1166089 2023-005
    Material Weakness Repeat
  • 1166090 2023-005
    Material Weakness Repeat
  • 1166091 2023-005
    Material Weakness Repeat
  • 1166092 2023-005
    Material Weakness Repeat
  • 1166093 2023-005
    Material Weakness Repeat
  • 1166094 2023-005
    Material Weakness Repeat
  • 1166095 2023-005
    Material Weakness Repeat
  • 1166096 2023-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.553 SCHOOL BREAKFAST PROGRAM $2.09M
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $1.47M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1.22M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $890,673
14.900 LEAD HAZARD REDUCTION GRANT PROGRAM $871,698
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $580,296
10.555 NATIONAL SCHOOL LUNCH PROGRAM $482,888
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $435,850
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $420,364
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $360,259
84.027 SPECIAL EDUCATION GRANTS TO STATES $353,611
59.075 SHUTTERED VENUE OPERATORS GRANT PROGRAM $300,713
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $261,193
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $188,860
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $183,371
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $172,749
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $170,430
16.803 RECOVERY ACT - EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG) PROGRAM/ GRANTS TO STATES AND TERRITORIES $154,589
10.558 CHILD AND ADULT CARE FOOD PROGRAM $146,001
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $109,225
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $103,579
16.922 EQUITABLE SHARING PROGRAM $101,851
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $100,000
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $60,000
93.788 OPIOID STR $54,732
16.804 RECOVERY ACT - EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG) PROGRAM / GRANTS TO UNITS OF LOCAL GOVERNMENT $50,517
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $48,939
45.310 GRANTS TO STATES $45,108
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $42,651
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $41,708
93.493 CONGRESSIONAL DIRECTIVES $41,136
84.425 EDUCATION STABILIZATION FUND $34,908
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $30,649
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $14,356
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $8,968
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $6,993
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $4,533
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $3,800
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $1,000