FAC Explorer

Finding 544430 (2024-003)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351108
Organization: City of Portsmouth (OH)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The City of Portsmouth lacks adequate internal controls for managing gift cards, risking misuse and misappropriation.
  • Impacted Requirements: Compliance with 2 CFR section 200.303(a) regarding effective internal control over Federal awards.
  • Recommended Follow-Up: The City should establish formal procedures for tracking, issuing, and reconciling gift cards to ensure proper usage and record maintenance.

Finding Text

Prior Year Finding: No Federal Agency: U.S Treasury Entity: City of Portsmouth (the City) Federal Program: Coronavirus State and Local Recovery Funds (CSLRF) Assistance Listing: 21.027 Federal Award Identification Number and Year: None Pass-Through Entity: N/A Award Number and Period: None, March 3, 2021 - December 31, 2024 Compliance Requirement: Allowable Activities Type of Finding:Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Internal Control - Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonFederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The City of Portsmouth did not have adequate internal controls in place to manage and monitor the distribution and usage of gift cards. Specifically, there were no formal procedures for tracking the issuance, distribution, and reconciliation of gift cards. This lack of controls resulted in an inability to ensure that gift cards were used for their intended purposes and increased the risk of misappropriation or misuse. Context None, the finding relates to the maintenance of records. Questioned costs: None noted Cause: The City's initial response was to provide immediate financial assistance to the City's residents. As a result, the time to establish adequate internal controls that prevent and/or detect errors and irregularities was decreased. Effect: The City may be unable to support the allowability of activity supported by the gift cards. Recommendation: We recommend that the City review and evaluate procedures to ensure that the procedures over safeguarding assets, maintenance of records, and reconciliation of activity are consistently performed. Views of responsible officials: Management agrees with the finding.

Categories

Matching / Level of Effort / Earmarking Subrecipient Monitoring Significant Deficiency Equipment & Real Property Management

Other Findings in this Audit

  • 544424 2024-002
    Material Weakness Repeat
  • 544425 2024-002
    Material Weakness Repeat
  • 544426 2024-002
    Material Weakness Repeat
  • 544427 2024-002
    Material Weakness Repeat
  • 544428 2024-002
    Material Weakness Repeat
  • 544429 2024-003
    Significant Deficiency
  • 544431 2024-003
    Significant Deficiency
  • 544432 2024-003
    Significant Deficiency
  • 544433 2024-004
    Significant Deficiency
  • 544434 2024-004
    Significant Deficiency
  • 544435 2024-004
    Significant Deficiency
  • 544436 2024-004
    Significant Deficiency
  • 544437 2024-005
    Significant Deficiency
  • 544438 2024-005
    Significant Deficiency
  • 544439 2024-005
    Significant Deficiency
  • 544440 2024-005
    Significant Deficiency
  • 544441 2024-005
    Significant Deficiency
  • 1120866 2024-002
    Material Weakness Repeat
  • 1120867 2024-002
    Material Weakness Repeat
  • 1120868 2024-002
    Material Weakness Repeat
  • 1120869 2024-002
    Material Weakness Repeat
  • 1120870 2024-002
    Material Weakness Repeat
  • 1120871 2024-003
    Significant Deficiency
  • 1120872 2024-003
    Significant Deficiency
  • 1120873 2024-003
    Significant Deficiency
  • 1120874 2024-003
    Significant Deficiency
  • 1120875 2024-004
    Significant Deficiency
  • 1120876 2024-004
    Significant Deficiency
  • 1120877 2024-004
    Significant Deficiency
  • 1120878 2024-004
    Significant Deficiency
  • 1120879 2024-005
    Significant Deficiency
  • 1120880 2024-005
    Significant Deficiency
  • 1120881 2024-005
    Significant Deficiency
  • 1120882 2024-005
    Significant Deficiency
  • 1120883 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $7.77M
10.555 National School Lunch Program $7.46M
84.027 Special Education Grants to States $4.16M
10.553 School Breakfast Program $3.21M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $2.59M
93.778 Medical Assistance Program $2.08M
93.558 Temporary Assistance for Needy Families $1.48M
93.667 Social Services Block Grant $1.36M
84.041 Impact Aid $964,119
93.659 Adoption Assistance $870,413
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $859,514
93.658 Foster Care Title IV-E $716,765
97.067 Homeland Security Grant Program $616,365
84.048 Career and Technical Education -- Basic Grants to States $524,526
16.575 Crime Victim Assistance $480,643
21.027 Coronavirus State and Local Fiscal Recovery Funds $412,603
14.218 Community Development Block Grants/entitlement Grants $411,278
14.267 Continuum of Care Program $399,910
84.424 Student Support and Academic Enrichment Program $366,727
93.568 Low-Income Home Energy Assistance $359,052
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $331,465
20.205 Highway Planning and Construction $314,256
84.047 Trio Upward Bound $295,425
10.558 Child and Adult Care Food Program $293,404
14.239 Home Investment Partnerships Program $259,785
84.173 Special Education Preschool Grants $222,891
84.002 Adult Education - Basic Grants to States $212,328
16.523 Juvenile Accountability Block Grants $198,748
93.959 Block Grants for Prevention and Treatment of Substance Abuse $173,427
93.958 Block Grants for Community Mental Health Services $151,066
97.044 Assistance to Firefighters Grant $133,045
84.425 Education Stabilization Fund $119,726
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $112,799
97.029 Flood Mitigation Assistance $110,769
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $98,627
97.042 Emergency Management Performance Grants $85,025
84.377 School Improvement Grants $81,541
93.556 Marylee Allen Promoting Safe and Stable Families Program $72,559
10.559 Summer Food Service Program for Children $62,194
93.788 Opioid Str $40,000
84.184 School Safely National Activities $29,326
93.472 Title IV-E Prevention Program $29,216
93.767 Children's Health Insurance Program $24,356
16.123 Community-Based Violence Prevention Program $23,896
93.150 Projects for Assistance in Transition From Homelessness (path) $23,589
16.738 Edward Byrne Memorial Justice Assistance Grant Program $17,791
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $15,123
84.365 English Language Acquisition State Grants $12,425
93.747 Elder Abuse Prevention Interventions Program $8,318
20.600 State and Community Highway Safety $8,124
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $7,094
93.603 Adoption and Legal Guardianship Incentive Payments Program $4,497
93.090 Guardianship Assistance $1,943
93.599 Chafee Education and Training Vouchers Program (etv) $1,408
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1,299