FAC Explorer

Finding 478017 (2022-008)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-07-09
Audit: 314741
Organization: City of Lynn (MA)
Auditor: Marcum LLP

AI Summary

  • Core Issue: Internal controls over reporting are weak, leading to discrepancies between reported expenditures and the general ledger.
  • Impacted Requirements: Compliance with OMB’s requirements for accurate and complete reporting on federal awards is not being met.
  • Recommended Follow-Up: Implement stronger internal control procedures to ensure all reports are accurate and complete.

Finding Text

2022-008 Improve Internal Controls Over Reporting Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 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 quarter 2 of 2022 (April – June) did not agree to the general ledger. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, key lines 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 Management agrees with the finding. 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: 2022-008 Improve Internal Controls Over Reporting (Significant Deficiency) Planned Corrective Action: The City contracted with a third party to report our COVID spending. The City was made aware of the discrepancy and will use MUNIS in the future to validate expenses accordingly. Completion Date Stephen T. Spencer, City of Lynn Comptroller December 31, 2024

Categories

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

Other Findings in this Audit

  • 478009 2022-005
    Significant Deficiency Repeat
  • 478010 2022-005
    Significant Deficiency Repeat
  • 478011 2022-005
    Significant Deficiency Repeat
  • 478012 2022-005
    Significant Deficiency Repeat
  • 478013 2022-005
    Significant Deficiency Repeat
  • 478014 2022-004
    Significant Deficiency Repeat
  • 478015 2022-004
    Significant Deficiency Repeat
  • 478016 2022-007
    Significant Deficiency
  • 478018 2022-004
    Significant Deficiency Repeat
  • 478019 2022-007
    Significant Deficiency Repeat
  • 478020 2022-004
    Significant Deficiency Repeat
  • 478021 2022-007
    Significant Deficiency Repeat
  • 478022 2022-004
    Significant Deficiency Repeat
  • 478023 2022-007
    Significant Deficiency Repeat
  • 478024 2022-004
    Significant Deficiency Repeat
  • 478025 2022-007
    Significant Deficiency Repeat
  • 478026 2022-004
    Significant Deficiency Repeat
  • 478027 2022-007
    Significant Deficiency Repeat
  • 478028 2022-004
    Significant Deficiency Repeat
  • 478029 2022-004
    Significant Deficiency Repeat
  • 478030 2022-004
    Significant Deficiency Repeat
  • 478031 2022-004
    Significant Deficiency Repeat
  • 478032 2022-004
    Significant Deficiency Repeat
  • 478033 2022-004
    Significant Deficiency Repeat
  • 478034 2022-004
    Significant Deficiency Repeat
  • 478035 2022-004
    Significant Deficiency Repeat
  • 478036 2022-004
    Significant Deficiency Repeat
  • 478037 2022-004
    Significant Deficiency Repeat
  • 478038 2022-004
    Significant Deficiency
  • 478039 2022-004
    Significant Deficiency
  • 478040 2022-004
    Significant Deficiency
  • 478041 2022-006
    Significant Deficiency Repeat
  • 478042 2022-006
    Significant Deficiency Repeat
  • 478043 2022-006
    Significant Deficiency Repeat
  • 478044 2022-006
    Significant Deficiency Repeat
  • 478045 2022-006
    Significant Deficiency Repeat
  • 478046 2022-006
    Significant Deficiency Repeat
  • 1054451 2022-005
    Significant Deficiency Repeat
  • 1054452 2022-005
    Significant Deficiency Repeat
  • 1054453 2022-005
    Significant Deficiency Repeat
  • 1054454 2022-005
    Significant Deficiency Repeat
  • 1054455 2022-005
    Significant Deficiency Repeat
  • 1054456 2022-004
    Significant Deficiency Repeat
  • 1054457 2022-004
    Significant Deficiency Repeat
  • 1054458 2022-007
    Significant Deficiency
  • 1054459 2022-008
    Significant Deficiency
  • 1054460 2022-004
    Significant Deficiency Repeat
  • 1054461 2022-007
    Significant Deficiency Repeat
  • 1054462 2022-004
    Significant Deficiency Repeat
  • 1054463 2022-007
    Significant Deficiency Repeat
  • 1054464 2022-004
    Significant Deficiency Repeat
  • 1054465 2022-007
    Significant Deficiency Repeat
  • 1054466 2022-004
    Significant Deficiency Repeat
  • 1054467 2022-007
    Significant Deficiency Repeat
  • 1054468 2022-004
    Significant Deficiency Repeat
  • 1054469 2022-007
    Significant Deficiency Repeat
  • 1054470 2022-004
    Significant Deficiency Repeat
  • 1054471 2022-004
    Significant Deficiency Repeat
  • 1054472 2022-004
    Significant Deficiency Repeat
  • 1054473 2022-004
    Significant Deficiency Repeat
  • 1054474 2022-004
    Significant Deficiency Repeat
  • 1054475 2022-004
    Significant Deficiency Repeat
  • 1054476 2022-004
    Significant Deficiency Repeat
  • 1054477 2022-004
    Significant Deficiency Repeat
  • 1054478 2022-004
    Significant Deficiency Repeat
  • 1054479 2022-004
    Significant Deficiency Repeat
  • 1054480 2022-004
    Significant Deficiency
  • 1054481 2022-004
    Significant Deficiency
  • 1054482 2022-004
    Significant Deficiency
  • 1054483 2022-006
    Significant Deficiency Repeat
  • 1054484 2022-006
    Significant Deficiency Repeat
  • 1054485 2022-006
    Significant Deficiency Repeat
  • 1054486 2022-006
    Significant Deficiency Repeat
  • 1054487 2022-006
    Significant Deficiency Repeat
  • 1054488 2022-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.34M
59.075 Shuttered Venue Operators Grant Program $2.12M
21.019 Coronavirus Relief Fund $2.10M
10.553 School Breakfast Program $1.96M
14.231 Emergency Solutions Grant Program $1.89M
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $1.16M
97.044 Assistance to Firefighters Grant $854,775
84.027 Special Education_grants to States $646,209
14.241 Housing Opportunities for Persons with Aids $551,043
16.803 Recovery Act - Eward Byrne Memorial Justice Assistance Grant (jag) Program/ Grants to States and Territories $460,148
14.239 Home Investment Partnerships Program $451,356
84.367 Improving Teacher Quality State Grants $443,406
10.555 National School Lunch Program $435,004
10.559 Summer Food Service Program for Children $428,786
14.218 Community Development Block Grants/entitlement Grants $395,904
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $281,306
10.582 Fresh Fruit and Vegetable Program $172,408
84.371 Striving Readers $165,919
84.424 Student Support and Academic Enrichment Program $149,904
10.558 Child and Adult Care Food Program $132,355
93.959 Block Grants for Prevention and Treatment of Substance Abuse $110,861
84.287 Twenty-First Century Community Learning Centers $109,836
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $100,000
84.010 Title I Grants to Local Educational Agencies $66,421
16.804 Recovery Act - Edward Byrne Memorial Justice Assistance Grant (jag) Program / Grants to Units of Local Government $60,270
84.365 English Language Acquisition State Grants $52,123
93.788 Opioid Str $50,988
84.048 Career and Technical Education -- Basic Grants to States $47,841
97.042 Emergency Management Performance Grants $41,155
16.922 Equitable Sharing Program $37,174
20.600 State and Community Highway Safety $34,665
84.173 Special Education_preschool Grants $30,757
10.542 Pandemic Ebt Food Benefits $27,595
84.196 Education for Homeless Children and Youth $15,969
45.310 Grants to States $4,892
84.425 Education Stabilization Fund $3,286
16.034 Coronavirus Emergency Supplemental Funding Program $11
97.083 Staffing for Adequate Fire and Emergency Response (safer) $-135,031