FAC Explorer

Finding 484745 (2023-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-08-21
Audit: 317656
Organization: Town of Provincetown, Massachusetts (MA)
Auditor: Cliftonlarsonallen LLP (cla)

AI Summary

  • Core Issue: Reimbursement requests were made before the related expenses were actually paid.
  • Impacted Requirements: Compliance with 2 CFR Part 200, which mandates that reimbursements only be requested for incurred and paid expenditures.
  • Recommended Follow-Up: Strengthen procedures to ensure all reimbursement requests align with incurred and paid expenses.

Finding Text

Federal Agency: U.S. Department of Transportation Federal Program Name: Airport Improvement Program Assistance Listing Number: 21.106 Federal Award Identification Number and Year: Various (FY 2023) Award Period: July 1, 2022 – June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of reporting.Condition: Certain amounts were requested for reimbursement prior to the related expenditures being paid/disbursed. Questioned Costs: None Context: During audit testing of reimbursement requests, two (2) expenses included in a request were paid/disbursed after the reimbursement request was submitted. Cause: Procedures were lacking to ensure that all requests for reimbursement were for expenditures that had been incurred and paid/disbursed. Effect: Federal reimbursements were requested prior to eligibility. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to ensure that all requests for reimbursement are for expenditures that have been incurred and paid/disbursed. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend procedures be strengthened to ensure that all requests for reimbursement are for expenditures that have been incurred and paid/disbursed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Name(s) of the contact person(s) responsible for corrective action: Nick Robertson, Town Accountant Planned completion date for corrective action plan: The reconciliation meetings were reintroduced in December 2022 upon Nick Robertson’s hiring as Town Accountant. There have been monthly and/or as needed meetings since to reconcile ledgers before grant reimbursements are submitted. Action taken in response to finding: Prior to the turnover in the Finance Department which occurred during the FY22 to early FY23 period, there were consistent meetings between Finance/Accounting and Jacobs Engineering (they manage the Airport projects and prepare the reimbursement requests) to confirm that the Town’s accounting software matched the expenses on the reimbursement requests. These meetings reconciling the ledgers did not occur when this reimbursement request was submitted by Jacobs. These meetings have been reinstated on a monthly basis and occasionally more frequently as needed.

Categories

Allowable Costs / Cost Principles Cash Management Eligibility Reporting Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1061187 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $2.76M
20.106 Airport Improvement Program $627,791
84.425 Education Stabilization Fund $247,594
84.010 Title I Grants to Local Educational Agencies $85,045
10.555 National School Lunch Program $83,690
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $82,607
21.019 Coronavirus Relief Fund $65,731
10.553 School Breakfast Program $37,451
93.778 Medical Assistance Program $35,196
84.424 Student Support and Academic Enrichment Program $12,892
84.367 Improving Teacher Quality State Grants $7,467
84.358 Rural Education $4,973
15.616 Clean Vessel Act Program $4,189
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $3,910
16.607 Bulletproof Vest Partnership Program $3,890
84.173 Special Education_preschool Grants $3,858
84.027 Special Education_grants to States $679