FAC Explorer

Finding 2314 (2022-001)

- Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-11-21
Audit: 3965
Organization: City of Chelsea (MA)
Auditor: Roselli Clark & Associates

AI Summary

  • Core Issue: The City charged the same invoice to two different federal grants, violating OMB guidelines.
  • Impacted Requirements: Recipients cannot use funds for expenses reimbursed by other sources, as outlined in the OMB Compliance Supplement.
  • Recommended Follow-Up: The City should enhance procedures for timely review of grant activities to prevent duplicate charges.

Finding Text

2022-001 U.S. Department of the Treasury Passed-through the Commonwealth of Massachusetts Executive Office for Administration and Finance COVID-19 – Coronavirus Relief Fund – 21.019 U.S. Department of the Homeland Security Passed-through the Massachusetts Emergency Management Agency Disaster Grants: Public Assistance (Presidentially Declared) – 97.036 Criteria: Per Part 4 of the OMB Compliance Supplement (21.019-4), recipients may not use payments from the Fund to cover expenditures for which they will receive reimbursement from other sources. Condition: The City charged the same invoice to two separate federal awards. Cause: Numerous invoices were added and removed from each grant as the eligibility criteria for grant charges evolved over time which led to the duplication. Effect: The City was reimbursed twice for the same invoice from separate federal awards. Questioned Costs: $15,579.58 Repeat Finding from Prior Year: Yes, finding 2021-002. Recommendation: The City should implement procedures to review grant general ledger activity more timely to ensure that duplicate costs are not included. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: The City charged the same invoice to two separate federal awards. Corrective Action Planned: This issue has been remedied. The City has corrected this and reversed the charge to the federal grant, reimbursed the grant funder, and filed a revised final grant report. This was an oversight in the management of high volume COVID related grants totaling $10.3M with over 1,000 transactions, and reclassifications had occurred between the two as expenditures became ineligible. Moving forward, the City will take steps to ensure direct expenditures and limit the need for reclassifications. Anticipated Completion Date: October 31, 2023 Contact: Edward M. Dunn, City Auditor

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Eligibility

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $1.82M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.49M
11.300 Investments for Public Works and Economic Development Facilities $1.30M
10.553 School Breakfast Program $992,044
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $919,477
16.817 Byrne Criminal Justice Innovation Program $578,485
10.555 National School Lunch Program $366,561
84.027 Special Education_grants to States $328,084
10.559 Summer Food Service Program for Children $309,243
10.582 Fresh Fruit and Vegetable Program $109,320
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $99,796
93.959 Block Grants for Prevention and Treatment of Substance Abuse $92,023
84.010 Title I Grants to Local Educational Agencies $85,976
84.365 English Language Acquisition State Grants $73,677
16.922 Equitable Sharing Program $69,196
84.367 Improving Teacher Quality State Grants $58,752
16.034 Coronavirus Emergency Supplemental Funding Program $45,055
16.738 Edward Byrne Memorial Justice Assistance Grant Program $40,022
84.425 Education Stabilization Fund $28,994
16.607 Bulletproof Vest Partnership Program $23,820
97.056 Port Security Grant Program $19,520
84.002 Adult Education - Basic Grants to States $19,459
84.173 Special Education_preschool Grants $18,882
84.424 Student Support and Academic Enrichment Program $18,386
10.558 Child and Adult Care Food Program $17,138
97.042 Emergency Management Performance Grants $15,476
84.287 Twenty-First Century Community Learning Centers $14,726
10.649 Pandemic Ebt Administrative Costs $8,589
20.600 State and Community Highway Safety $8,108
97.067 Homeland Security Grant Program $7,794
45.310 Grants to States $2,407
84.371 Striving Readers $136