FAC Explorer

Finding 553572 (2024-007)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 352169
Organization: City of South Portland, Maine (ME)
Auditor: Runyon Kersteen Ouellette

AI Summary

  • Core Issue: Missing supervisory approvals and discrepancies in timecards led to improper payroll payments.
  • Impacted Requirements: Internal controls under Uniform Guidance were insufficient due to staffing shortages.
  • Recommended Follow-Up: Assess staffing levels to improve payroll supervision at the Bus Station.

Finding Text

2024-007 U.S. Department of Transportation, Assistance Listing #20.507 and #20.526, Federal Transit Cluster Formula Grants for the period July 1, 2023 through June 30, 2024 Criteria: Administrative requirements under the Uniform Guidance require grantees to develop internal controls and procedures sufficient to prevent noncompliance. Condition: Out of forty payroll disbursements tested for the Federal Transit Cluster, thirteen timecards were missing documentation of supervisory approval and five timecards did not match the hours paid. Cause: Lack of administrative personnel at the Bus Station resulted in a breakdown of established internal control procedures over payroll. Effect: The errors caused improper payments for five of the forty paychecks tested. Actual overpayments of $436 were identified in our sample with an extrapolated overpayment of $11,533 across the population. Recommendation: We recommend evaluating staffing workloads to ensure adequate supervision of the payroll function at the Bus Station. Questioned Costs: None

Corrective Action Plan

Management’s Response/Corrective Action Plan: The Director and Operations Manager abruptly left in spring of 2024 and the City contracted with Greater Portland Metro to run the service until we could determine next steps. The City Council approved joining Greater Portland Metro in September 2024, effective January 2025. The City no longer has a bus service.

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 553573 2024-007
    Significant Deficiency
  • 553574 2024-007
    Significant Deficiency
  • 553575 2024-008
    Significant Deficiency
  • 553576 2024-008
    Significant Deficiency
  • 553577 2024-008
    Significant Deficiency
  • 553578 2024-005
    Material Weakness
  • 553579 2024-006
    Material Weakness Repeat
  • 553580 2024-006
    Material Weakness Repeat
  • 553581 2024-006
    Material Weakness Repeat
  • 553582 2024-006
    Material Weakness Repeat
  • 553583 2024-006
    Material Weakness Repeat
  • 553584 2024-009
    Significant Deficiency
  • 1130014 2024-007
    Significant Deficiency
  • 1130015 2024-007
    Significant Deficiency
  • 1130016 2024-007
    Significant Deficiency
  • 1130017 2024-008
    Significant Deficiency
  • 1130018 2024-008
    Significant Deficiency
  • 1130019 2024-008
    Significant Deficiency
  • 1130020 2024-005
    Material Weakness
  • 1130021 2024-006
    Material Weakness Repeat
  • 1130022 2024-006
    Material Weakness Repeat
  • 1130023 2024-006
    Material Weakness Repeat
  • 1130024 2024-006
    Material Weakness Repeat
  • 1130025 2024-006
    Material Weakness Repeat
  • 1130026 2024-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $3.26M
84.425 Covid-19 - Elementary and Secondary School Emergency Relief III $2.32M
84.027 Special Education State Grants Individuals with Disabilities Act $1.15M
84.010 Title Ia, Disadvantaged $711,957
20.507 Federal Transit Formula Grants $590,783
20.507 Covid-19 - Federal Transit Formula Grants $561,181
16.922 Equitable Sharing Program $540,610
10.555 National School Lunch Program $524,487
14.218 Cdbg - Entitlement Community (cdbg - Entitlement Grants Cluster) $299,689
10.553 Breakfast Program $241,116
84.196 McKinney-Vento Education for Homeless Children and Youth $235,228
84.425 Covid-19 - Maine Outdoor Learning Initiative $192,559
84.425 Covid-19 - Multilingual Learners Experiencing Homelessness $171,898
84.027 Covid-19 - Special Education State Grants Individuals with Disabilities Act - Arp $143,173
84.424 Title Iv, Student Support and Academic Enrichment Program $137,710
21.027 Covid-19 Extended Learning Opportunities (seelo) $129,091
97.067 Homeland Security Grant Program- Fy 21 $115,717
10.555 Food Donation Program $114,742
21.027 Covid-19 Workforce Development $107,861
93.276 Drug Free Communities Support Program (2024 Grant) $89,188
20.205 Highway Planning and Construction $79,680
10.582 Fresh Fruit and Vegetables $73,732
10.555 State Administrative Expenses for Child Nutrition: Supply Chain Assistance $71,000
84.367 Title Iia, Supporting Effective Instruction $66,996
66.818 Brownfields Multipurpose $63,796
84.365 Title Iii, English Language Acquisition Grant $53,938
84.425 Covid-19 - Literacy Grant $43,491
21.027 Covid-19 Workforce Development Admin $36,901
93.276 Drug Free Communities Support Program (2023 Grant) $31,732
10.559 Summer Food Service Program $28,990
97.067 Homeland Security Grant Program- Fy 23 $24,816
21.027 Covid-19 Pre-K Expansion Grant $23,412
84.173 Preschool $21,130
84.002 Adult Basic Education $18,829
84.425 Covid-19 - Summer Reservation Subgrant $17,728
97.004 County Hazmat Grant $17,113
11.419 Coastal Zone Management Administration $16,888
97.067 Homeland Security Grant Program- Fy 22 $13,085
97.067 Homeland Security Grant Program- Fy 20 $11,850
20.526 Bus and Bus Facilities Formula Grants $6,246
10.649 Covid-19 - Pandemic Ebt Administrative Costs: Snap $5,224
16.738 Justice Assistance Grant $400
10.558 Child and Adult Care Food Program $336