Finding 25714 (2022-001)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2023-01-09
Audit: 20264
Organization: Town of Mansfield (MA)

AI Summary

  • Core Issue: The Town's expenditure report was duplicated due to technical problems with the U.S. Treasury's portal during submission.
  • Impacted Requirements: The Town must comply with reporting requirements, including submitting accurate project and expenditure reports annually.
  • Recommended Follow-Up: Management should correct the report in the next submission due on April 30, 2023, as advised by the U.S. Department of the Treasury.

Finding Text

U.S. DEPARTMENT OF TREASURY COVID-19 Coronavirus State and Local Recovery Funds Federal Assistance Listing Number 21.027 Compliance Requirement: Reporting Type of Finding: Compliance and Internal Control over Compliance ? Other Matter Criteria or Specific Requirement: Grantees must comply with reporting requirements established by the U.S. Treasury that includes the total grant expenditures incurred for the reporting period. Since the Town is a Non-Entitlement Unit that received less than $10 million in funding, the Town was required to submit a project and expenditure report by April 30, 2022, and annually thereafter. Condition: Due to ?technical issues? with the Treasury?s Portal, the electronic report submitted to the U.S. Treasury on April 30, 2022 duplicated the total expenditures incurred for the period. Questioned Costs: None Reported. Context: The Town filed the required project and expenditure report in a timely manner, however while submitting the report the Treasury?s Portal began experiencing technical problems and became unresponsive. Unsure whether its report was accepted by the Treasury?s portal, the Town logged off the portal and then logged back on. This time, the Treasury?s portal successfully accepted the Town?s reported expenditures, and the report was accurate. Several months later the Town learned that its first submission (i.e., the submission session that needed to be rebooted/restarted by the Town due to the portal?s technical issues) was actually logged, as was the second submission (i.e., the submission that was made after the reboot/restart several moments later). Upon this discovery, the Town immediately contacted the Treasury Department and was instructed to correct it on the subsequent report, which will be submitted on April 30, 2023. Effect: The expenditures reported on the Town?s project and expenditure report did not match the accounting records due to the duplication of amounts. Cause: The Treasury Portal?s technical issues caused a duplication of amounts when submitting the required electronic files. Recommendation: Management should correct the report in the next reporting submission as instructed by the U.S. Department of the Treasury. Views of Responsible Officials and Planned Corrective Actions: Management made a good faith effort to correctly report its expenditures to the Treasury Department and cannot accept responsibility for the duplication of amounts caused by the Treasury?s own admitted technical issues with its portal. Management will rectify the issue with the next submission in accordance with U.S. Department of the Treasury?s recommended guidance.

Corrective Action Plan

CORRECTIVE ACTION PLAN Oversight Agency for Audit: U.S. Department of Elementary and Secondary Education The Town of Mansfield, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Powers & Sullivan, LLC 100 Quannapowitt Parkway, Suite 101 Wakefield, MA 01880 Audit period: July 1, 2021 through June 30, 2022 The finding from the June 30, 2022, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. DEPARTMENT OF TREASURY COVID-19 Coronavirus State and Local Recovery Funds Federal Assistance Listing Number 21.027 2022-001 ? Reporting to the Federal Government Compliance Requirement: Reporting Type of Finding: Compliance and Internal Control over Compliance ? Other Matter Criteria or Specific Requirement: Grantees must comply with reporting requirements established by the U.S. Treasury that includes the total grant expenditures incurred for the reporting period. Since the Town is a Non-Entitlement Unit that received less than $10 million in funding, the Town was required to submit a project and expenditure report by April 30, 2022, and annually thereafter. Condition: Due to ?technical issues? with the Treasury?s Portal, the electronic report submitted to the U.S. Treasury on April 30, 2022 duplicated the total expenditures incurred for the period. Questioned Costs: None Reported. Context: The Town filed the required project and expenditure report in a timely manner, however while submitting the report the Treasury?s Portal began experiencing technical problems and became unresponsive. Unsure whether its report was accepted by the Treasury?s portal, the Town logged off the portal and then logged back on. This time, the Treasury?s portal successfully accepted the Town?s reported expenditures, and the report was accurate. Several months later the Town learned that its first submission (i.e., the submission session that needed to be rebooted/restarted by the Town due to the portal?s technical issues) was actually logged, as was the second submission (i.e., the submission that was made after the reboot/restart several moments later). Upon this discovery, the Town immediately contacted the Treasury Department and was instructed to correct it on the subsequent report, which will be submitted on April 30, 2023. Effect: The expenditures reported on the Town?s project and expenditure report did not match the accounting records due to the duplication of amounts. Cause: The Treasury Portal?s technical issues caused a duplication of amounts when submitting the required electronic files. Recommendation: Management should correct the report in the next reporting submission as instructed by the U.S. Department of the Treasury. Views of Responsible Officials and Planned Corrective Actions: Management made a good faith effort to correctly report its expenditures to the Treasury Department and cannot accept responsibility for the duplication of amounts caused by the Treasury?s own admitted technical issues with its portal. Management will rectify the issue with the next submission in accordance with U.S. Department of Treasury?s recommended guidance. If the Oversight Agency has questions regarding this plan, please call Matthew Violette, Town Accountant at 508-851-6435. Sincerely yours, Matthew Violette Town Accountant Town of Mansfield, Massachusetts

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $1.52M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $539,340
20.106 Airport Improvement Program $200,692
10.553 School Breakfast Program $149,564
97.083 Staffing for Adequate Fire and Emergency Response (safer) $146,203
21.019 Covid-19 Coronavirus Relief Fund $130,852
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $83,486
84.367 Improving Teacher Quality State Grants $54,754
84.010 Title I Grants to Local Educational Agencies $41,055
84.173 Covid-19 Special Education_preschool Grants $18,994
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $15,508
84.027 Special Education_grants to States $14,059
84.027 Covid-19 Special Education_grants to States $12,902
84.425 Covid-19 Education Stabilization Fund $5,171
10.649 Covid-19 Pandemic Ebt Administrative Costs $3,070
84.173 Special Education_preschool Grants $1,587
16.203 Sex Offender Management Discretionary Grant $1,518
84.424 Student Support and Academic Enrichment Program $1,204
10.551 Supplemental Nutrition Assistance Program $464