Finding 1182367 (2025-002)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
-
Year
2025
Accepted
2026-03-24
Audit: 393804
Organization: City of Portsmouth (NH)

AI Summary

  • Core Issue: Two out of eight transactions were charged outside the approved period of performance for the federal award.
  • Impacted Requirements: Compliance with federal regulations on allowable costs, specifically 2 CFR sections 200.308, 200.309, and 200.403(h).
  • Recommended Follow-Up: Strengthen procedures to ensure all expenditures are incurred within the grant award's period of performance.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Federal Award Identification Number: H027A240103 Pass-Through Agency: New Hampshire Department of Education Pass-Through Number(s): 20230519, 20241089, 20250423 Award Period: July 1, 2024 – June 30, 2025 Compliance Requirement: Period of Performance Type of Finding: • Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: A nonfederal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)). A period of performance may contain one or more budget periods. Condition and Context: Two (2) of eight (8) transactions tested were incurred outside of the period of performance. Questioned costs: Below the reportable threshold. Cause: Procedures were not in place to ensure that expenditures charged to the grant program were incurred within the period of performance in the grant award for all applicable transactions. Effect: Noncompliance with federal requirements occurred. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to ensure that charges to the grant program are incurred within the period of performance included in the grant award. Views of responsible officials: Management agrees with the finding.

Corrective Action Plan

2025-002 Special Education Cluster - Assistance Listing Number 84.027, 84.173 Recommendation: We recommend procedures be strengthened to ensure that charges to the grant program are incurred within the period of performance included in the grant award. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The City will implement procedures to ensure that expenditures charged to federal awards are incurred within the approved period of performance in accordance with 2 CFR §§ 200.308, 200.309, and 200.403. The School Department will enhance its grant monitoring procedures by maintaining a tracking schedule of grant periods of performance and reviewing invoices and payment requests for compliance with grant award dates prior to processing. School Department Finance staff will also provide guidance to departments administering grants to ensure expenditures are incurred and submitted within the allowable grant period. These procedures will strengthen internal controls and reduce the risk of expenditures being charged outside the approved period of performance. Name(s) of the contact person(s) responsible for corrective action: Brian Cisneros, Business Administrator Planned completion date for corrective action plan: Implemented immediately and effective for all current and future federal awards.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1182364 2025-001
    Material Weakness Repeat
  • 1182365 2025-001
    Material Weakness Repeat
  • 1182366 2025-002
    Material Weakness Repeat
  • 1182368 2025-003
    Material Weakness Repeat
  • 1182369 2025-003
    Material Weakness Repeat
  • 1182370 2025-003
    Material Weakness Repeat
  • 1182371 2025-003
    Material Weakness Repeat
  • 1182372 2025-003
    Material Weakness Repeat
  • 1182373 2025-003
    Material Weakness Repeat
  • 1182374 2025-003
    Material Weakness Repeat
  • 1182375 2025-004
    Material Weakness Repeat
  • 1182376 2025-004
    Material Weakness Repeat
  • 1182377 2025-004
    Material Weakness Repeat
  • 1182378 2025-004
    Material Weakness Repeat
  • 1182379 2025-004
    Material Weakness Repeat
  • 1182380 2025-004
    Material Weakness Repeat
  • 1182381 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1.04M
84.425 EDUCATION STABILIZATION FUND $942,123
84.027 SPECIAL EDUCATION GRANTS TO STATES $742,054
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $413,605
16.543 MISSING CHILDREN'S ASSISTANCE $139,489
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $108,855
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $106,384
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $97,129
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $46,229
97.115 ASSISTANCE TO FIREFIGHTERS GRANT (ARRA) $42,326
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $31,092
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $27,959
16.575 CRIME VICTIM ASSISTANCE $24,739
20.205 HIGHWAY PLANNING AND CONSTRUCTION $21,944
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $21,415
10.555 NATIONAL SCHOOL LUNCH PROGRAM $15,652
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $14,470
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $10,597
97.039 HAZARD MITIGATION GRANT $8,730
16.922 EQUITABLE SHARING PROGRAM $6,470
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $4,611
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $4,214
10.553 SCHOOL BREAKFAST PROGRAM $2,104
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $1,062
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $200