Finding 4964 (2022-003)

-
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-12-18
Audit: 7220
Organization: City of Medford (MA)

AI Summary

  • Core Issue: The City reported $7,292,100 in obligations that were not properly identified or defined.
  • Impacted Requirements: Reporting must include accurate current and cumulative obligations, as outlined in the compliance supplement.
  • Recommended Follow-Up: Implement procedures to ensure only valid obligations are reported in future Project and Expenditure reports.

Finding Text

U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – CFDA 21.027 Criteria: The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Per 2 CFR 200.1, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment. Condition: On the June 30, 2022 Project and Expenditure report the City reported $7,292,100 of obligations for expenditures that had yet to be specifically identified nor met the definition of an obligation. Cause: The City did not have a clear understanding of the reporting requirements for obligations. Effect: The City overstated the amounts obligated in the June 30, 2022 Project and Expenditure report. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to only report obligations on the Project and Expenditure reporting for items that meet the federal criteria for reporting as an obligation. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: On the June 30, 2022 Project and Expenditure report the City reported $7,292,100 of obligations for expenditures that had yet to be specifically identified nor met the definition of an obligation. Corrective Action Planned: $7,292,100 was used to fund the FY 2023 operating budget. The funds were used to defray payroll expenses in the Police department, Fire Department, and School. For FY 2024 no ARPA funds were used to fund the operating expenses, so going forward no obligations will be incurred that aren’t specifically identified by the ARPA approval process. Anticipated Completion Date: Completed Contact: Robert Dickinson, City Auditor

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 4958 2022-007
    Significant Deficiency Repeat
  • 4959 2022-007
    Significant Deficiency Repeat
  • 4960 2022-007
    Significant Deficiency Repeat
  • 4961 2022-007
    Significant Deficiency Repeat
  • 4962 2022-005
    -
  • 4963 2022-005
    -
  • 4965 2022-006
    - Repeat
  • 4966 2022-006
    - Repeat
  • 4967 2022-006
    - Repeat
  • 4968 2022-006
    - Repeat
  • 4969 2022-004
    Significant Deficiency
  • 4970 2022-004
    Significant Deficiency
  • 4971 2022-004
    Significant Deficiency
  • 4972 2022-004
    Significant Deficiency
  • 4973 2022-004
    Significant Deficiency
  • 4974 2022-004
    Significant Deficiency
  • 4975 2022-004
    Significant Deficiency
  • 4976 2022-004
    Significant Deficiency
  • 581400 2022-007
    Significant Deficiency Repeat
  • 581401 2022-007
    Significant Deficiency Repeat
  • 581402 2022-007
    Significant Deficiency Repeat
  • 581403 2022-007
    Significant Deficiency Repeat
  • 581404 2022-005
    -
  • 581405 2022-005
    -
  • 581406 2022-003
    -
  • 581407 2022-006
    - Repeat
  • 581408 2022-006
    - Repeat
  • 581409 2022-006
    - Repeat
  • 581410 2022-006
    - Repeat
  • 581411 2022-004
    Significant Deficiency
  • 581412 2022-004
    Significant Deficiency
  • 581413 2022-004
    Significant Deficiency
  • 581414 2022-004
    Significant Deficiency
  • 581415 2022-004
    Significant Deficiency
  • 581416 2022-004
    Significant Deficiency
  • 581417 2022-004
    Significant Deficiency
  • 581418 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $13.12M
14.218 Community Development Block Grants/entitlement Grants $2.33M
21.019 Coronavirus Relief Fund $675,893
10.553 School Breakfast Program $377,933
10.555 National School Lunch Program $141,524
84.027 Special Education_grants to States $139,822
32.009 Emergency Connectivity Fund Program $136,000
97.044 Assistance to Firefighters Grant $77,341
84.425 Education Stabilization Fund $56,160
93.959 Block Grants for Prevention and Treatment of Substance Abuse $31,417
84.173 Special Education_preschool Grants $30,908
10.558 Child and Adult Care Food Program $24,353
16.922 Equitable Sharing Program $23,099
16.607 Bulletproof Vest Partnership Program $14,360
84.367 Improving Teacher Quality State Grants $12,515
84.424 Student Support and Academic Enrichment Program $9,942
84.048 Career and Technical Education -- Basic Grants to States $7,060
10.649 Pandemic Ebt Administrative Costs $4,912
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $2,188
84.196 Education for Homeless Children and Youth $2,000
84.010 Title I Grants to Local Educational Agencies $1,402
84.365 English Language Acquisition State Grants $767