FAC Explorer

Finding 499308 (2023-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 322147
Organization: Town of Randolph, Ma (MA)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The Town failed to keep signed vouchers for vendor and payroll payments, which is necessary for compliance with federal grant requirements.
  • Impacted Requirements: Lack of documentation violates the compliance requirement for allowable costs, risking disallowed expenses and potential refunds.
  • Recommended Follow-Up: The Town should implement strict policies to ensure all disbursements are backed by signed vouchers and proper documentation.

Finding Text

Finding Number: 2023-001 Federal Agency: U.S. Department of Homeland Security Cluster/Program: COVID-19 – Disaster Grants – Public Assistance (Presidentially Declared Disasters) AL Number(s): 97.036 Award Year: 2023 Compliance Requirement: Activities Allowed or Unallowed & Allowable Cost/Cost Principles Type of Finding Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement All disbursements should be supported by documented evidence to ensure expenditures are allowable under the award terms. Condition and Context It was observed that the Town did not retain signed vouchers or equivalent documentation for certain vendor and payroll disbursements. Cause An inadequacy in the internal control system designed to ensure retention of appropriate supporting evidence for expenditures. Effect or Potential Effect The effect of not retaining signed disbursement approval is the inability to demonstrate that expenditures were approved by an individual knowledgeable of the program and its requirements. This could result in disallowed costs and a potential requirement to refund money. Recommendation The Town should establish and enforce policies and procedures to require the retention of signed vouchers and supporting documentation for all invoices. 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

Issue Date: May 23,2024 Audit Reference: 23-001 FEMA Vouchers signatures Non-Compliance Issue: Intemal Control over Compliance - Significant Deficiency Root Cause: There was a change in process implemented related to the form in which documents were being retained. The Town has a tax abatement program with senior volunteers that was used to assist in scanning hardcopy documents to electronic documents for paperless records retention. Corrective Action(s): l. Action ltem: a. The Town will no longer use volunteers for this task. An individuat lamiliar with the documents will scan the hardcopy records for retention ensuring that the documents are scanned completely and labeled clearly so that they can be easily identified, if needed. b. The accounting office and the Director ofFinance/Town Accountant will be responsible for the oversight of this improvement. c. This change in process has already been put in place.

Categories

Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 499309 2023-002
    Significant Deficiency
  • 499310 2023-003
    Material Weakness
  • 499311 2023-004
    Significant Deficiency
  • 499312 2023-004
    Significant Deficiency
  • 499313 2023-004
    Significant Deficiency
  • 499314 2023-004
    Significant Deficiency
  • 499315 2023-004
    Significant Deficiency
  • 499316 2023-004
    Significant Deficiency
  • 499317 2023-004
    Significant Deficiency
  • 1075750 2023-001
    Significant Deficiency
  • 1075751 2023-002
    Significant Deficiency
  • 1075752 2023-003
    Material Weakness
  • 1075753 2023-004
    Significant Deficiency
  • 1075754 2023-004
    Significant Deficiency
  • 1075755 2023-004
    Significant Deficiency
  • 1075756 2023-004
    Significant Deficiency
  • 1075757 2023-004
    Significant Deficiency
  • 1075758 2023-004
    Significant Deficiency
  • 1075759 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.12M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.41M
10.553 School Breakfast Program $609,422
84.215 Fund for the Improvement of Education $275,000
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $256,848
84.425 Education Stabilization Fund $194,720
84.367 Improving Teacher Quality State Grants $192,575
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $186,286
16.710 Public Safety Partnership and Community Policing Grants $151,762
10.555 National School Lunch Program $122,066
84.365 English Language Acquisition State Grants $103,039
10.579 Child Nutrition Discretionary Grants Limited Availability $79,366
10.559 Summer Food Service Program for Children $59,301
84.371 Striving Readers $57,057
16.738 Edward Byrne Memorial Justice Assistance Grant Program $53,257
84.424 Student Support and Academic Enrichment Program $31,332
97.044 Assistance to Firefighters Grant $22,727
84.010 Title I Grants to Local Educational Agencies $21,960
93.268 Immunization Cooperative Agreements $15,126
84.173 Special Education_preschool Grants $12,555
84.196 Education for Homeless Children and Youth $12,185
97.042 Emergency Management Performance Grants $8,473
16.607 Bulletproof Vest Partnership Program $7,234
84.027 Special Education_grants to States $1,620
20.616 National Priority Safety Programs $410