FAC Explorer

Finding 44518 (2022-004)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-03-19
Audit: 43791
Organization: City of Portland Maine (ME)
Auditor: Melanson CPAS

AI Summary

  • Core Issue: Time and effort documentation for federal grant funding was not properly maintained, leading to potential noncompliance with federal requirements.
  • Impacted Requirements: Grantees must ensure that costs charged to federal awards are allowable and supported by accurate time and effort records.
  • Recommended Follow-Up: The Planning Department should strengthen internal controls to ensure compliance and proper documentation of federal award expenditures.

Finding Text

2022-004 Improve Time and Effort Documentation Federal Agency: U.S Department of Housing and Urban Development Cluster/Program: Community Development Block Grants/Entitlement Cluster Award Name: Community Development Block Grants/Entitlement AL Number(s): 14.218 Award Year: 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. An employee whose salary is paid in part from federal grant funds and in part from other revenue sources must maintain time and effort distribution records, such as activity reports or timesheets, that document the portion of time spent working on tasks related to the federal grant program and time spent on programs supported by the other revenue sources. Management is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance 22 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 During our audit, we tested a sample of payroll disbursements in order to determine if adequate time and effort records were maintained. As a result of our testing, we determined that time and effort certifications for the period under audit were not properly prepared. Specifically, time and effort certifications were not provided for salaried individuals paid in part from federal grant funds and in part from other revenue sources. Effect or Potential Effect Time and effort documentation did not meet federal requirements. There is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Questioned Costs Due to the condition noted, we were unable to determine if the costs charged to the following grant are allowable. AL Known or Likely Number Name of Federal Program or Cluster Questioned Costs 14.218 Community Development Block Grants/Entitlement Cluster $179,389 Cause Weaknesses in the design and operation of controls. Recommendation The Planning Department should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are expended only for allowable activities, and that the costs services charged to federal awards are allowable and in accordance with the applicable cost principles. Views of Responsible Official and Planned Corrective Action Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.

Corrective Action Plan

Finding 2022-004 Improve Time and Effort Documentation Planned Corrective Action: The Housing and Economic Development Department will establish a process to document time and effort certifications for salaried employees, and ensure that compliance is monitored on an ongoing basis by the HCD Division Director. Anticipated Completion Date: May 1, 2023 Contact Person: Mary Davis, Interim Department Director, Housing and Economic Development and Division Director, Housing and Community Development

Categories

Questioned Costs Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 44519 2022-004
    Material Weakness
  • 44520 2022-003
    Material Weakness
  • 44521 2022-003
    Material Weakness
  • 44522 2022-003
    Material Weakness
  • 44523 2022-003
    Material Weakness
  • 44524 2022-003
    Material Weakness
  • 44525 2022-003
    Material Weakness
  • 44526 2022-003
    Material Weakness
  • 620960 2022-004
    Material Weakness
  • 620961 2022-004
    Material Weakness
  • 620962 2022-003
    Material Weakness
  • 620963 2022-003
    Material Weakness
  • 620964 2022-003
    Material Weakness
  • 620965 2022-003
    Material Weakness
  • 620966 2022-003
    Material Weakness
  • 620967 2022-003
    Material Weakness
  • 620968 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.90M
20.106 Airport Improvement Program $1.17M
10.553 School Breakfast Program $1.14M
14.239 Home Investment Partnerships Program $1.02M
21.019 Coronavirus Relief Fund $529,712
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $462,317
93.788 Opioid Str $417,970
59.075 Shuttered Venue Operators Grant Program $406,997
84.424 Student Support and Academic Enrichment Program $384,429
84.367 Improving Teacher Quality State Grants $351,842
14.218 Community Development Block Grants/entitlement Grants $345,885
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $318,360
20.205 Highway Planning and Construction $254,992
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $220,582
10.565 Commodity Supplemental Food Program $217,959
97.067 Homeland Security Grant Program $202,805
84.048 Career and Technical Education -- Basic Grants to States $192,387
10.558 Child and Adult Care Food Program $147,933
10.559 Summer Food Service Program for Children $144,335
84.365 English Language Acquisition State Grants $140,927
16.034 Coronavirus Emergency Supplemental Funding Program $118,000
10.582 Fresh Fruit and Vegetable Program $81,090
84.002 Adult Education - Basic Grants to States $72,622
93.959 Block Grants for Prevention and Treatment of Substance Abuse $71,812
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $70,103
93.069 Public Health Emergency Preparedness $64,343
97.072 Tsa Bomb Dogs $60,326
93.576 Refugee and Entrant Assistance_discretionary Grants $52,248
93.940 Hiv Prevention Activities_health Department Based $50,683
84.196 Education for Homeless Children and Youth $47,972
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $44,667
93.575 Child Care and Development Block Grant $44,431
93.136 Injury Prevention and Control Research and State and Community Based Programs $43,080
16.575 Crime Victim Assistance $41,831
16.609 Project Safe Neighborhoods $37,149
84.027 Special Education_grants to States $36,623
84.173 Special Education_preschool Grants $29,206
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $27,622
97.044 Assistance to Firefighters Grant $26,000
97.032 Crisis Counseling $25,629
14.231 Emergency Solutions Grant Program $16,295
15.904 Historic Preservation Fund Grants-in-Aid $12,500
84.425 Education Stabilization Fund $8,872
21.027 Coronavirus State and Local Fiscal Recovery Funds $6,257
16.738 Edward Byrne Memorial Justice Assistance Grant Program $5,540
10.555 National School Lunch Program $3,688
97.024 Emergency Food and Shelter National Board Program $2,011
93.817 Hospital Preparedness Program (hpp) Ebola Preparedness and Response Activities $163
97.039 Hazard Mitigation Grant $147