FAC Explorer

Finding 957273 (2022-004)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2024-03-18
Audit: 295538
Organization: City of Lynn (MA)
Auditor: Marcum LLP

AI Summary

  • Core Issue: Time and effort certifications for employees were not properly maintained across multiple federal grant programs, indicating significant internal control deficiencies.
  • Impacted Requirements: Compliance with allowable costs/cost principles is at risk, potentially leading to unallowable charges against federal awards.
  • Recommended Follow-Up: Strengthen internal controls to ensure compliance with federal requirements and prevent recurrence of this issue, as it has been identified previously.

Finding Text

2022-004 Maintain Employee’s Time and Effort Records Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program: CDBG – Entitlement Grants Cluster Award Name: Community Development Block Grants/Entitlement Grants AL Number(s): 14.218 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Cluster/Program: Special Education Cluster Award Name: Special Education Grants to States/Special Education Preschool Grants AL Number(s): 84.027/84.173 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Title I Grants to Local Educational Agencies AL Number(s): 84.010 Award Year: 2021 and 2022 Compliance Requirement: Allowable Costs/Cost Principles Federal Agency: U.S. Department Education Award Name: Student Support and Academic Enrichment Program AL Number(s): 84.424 Award Year: 2021 Compliance Requirement: Allowable Costs/Cost Principles  Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow man-agement or employees, in the normal course of performing their assigned functions, to pre¬vent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context A sample of payroll disbursements was tested in order to determine if adequate time and effort certifications were maintained. As a result of our testing it was determined that time and effort certifications were not maintained for all applicable employees in the Community Development Block Grants/Entitlement Grants, for three employees in the Special Education Grants to States, for one employee in the Special Education Preschool Grants, for two employees in the Title I Grants to Local Educational Agencies, and for seven employees in the Student Support and Academic Enrichment Program. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, there is a risk that amounts charged to federal awards may not be allowable or in accordance with applicable cost principles. Known questioned costs are reported as follows: Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-004, which was applicable to the Community Development Block Grants/Entitlement Grants, Special Education Grants to States, and Title I Grants to Local Educational Agencies. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that federal awards are allowable and in accordance with the applicable cost principles. 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.

Categories

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 380810 2022-005
    Significant Deficiency Repeat
  • 380811 2022-005
    Significant Deficiency Repeat
  • 380812 2022-005
    Significant Deficiency Repeat
  • 380813 2022-005
    Significant Deficiency Repeat
  • 380814 2022-005
    Significant Deficiency Repeat
  • 380815 2022-004
    Significant Deficiency Repeat
  • 380816 2022-004
    Significant Deficiency Repeat
  • 380817 2022-007
    Significant Deficiency
  • 380818 2022-008
    Significant Deficiency
  • 380819 2022-004
    Significant Deficiency Repeat
  • 380820 2022-007
    Significant Deficiency Repeat
  • 380821 2022-004
    Significant Deficiency Repeat
  • 380822 2022-007
    Significant Deficiency Repeat
  • 380823 2022-004
    Significant Deficiency Repeat
  • 380824 2022-007
    Significant Deficiency Repeat
  • 380825 2022-004
    Significant Deficiency Repeat
  • 380826 2022-007
    Significant Deficiency Repeat
  • 380827 2022-004
    Significant Deficiency Repeat
  • 380828 2022-007
    Significant Deficiency Repeat
  • 380829 2022-004
    Significant Deficiency Repeat
  • 380830 2022-004
    Significant Deficiency Repeat
  • 380831 2022-004
    Significant Deficiency Repeat
  • 380832 2022-004
    Significant Deficiency Repeat
  • 380833 2022-004
    Significant Deficiency Repeat
  • 380834 2022-004
    Significant Deficiency Repeat
  • 380835 2022-004
    Significant Deficiency Repeat
  • 380836 2022-004
    Significant Deficiency Repeat
  • 380837 2022-004
    Significant Deficiency Repeat
  • 380838 2022-004
    Significant Deficiency Repeat
  • 380839 2022-004
    Significant Deficiency
  • 380840 2022-004
    Significant Deficiency
  • 380841 2022-004
    Significant Deficiency
  • 380842 2022-006
    Significant Deficiency Repeat
  • 380843 2022-006
    Significant Deficiency Repeat
  • 380844 2022-006
    Significant Deficiency Repeat
  • 380845 2022-006
    Significant Deficiency Repeat
  • 380846 2022-006
    Significant Deficiency Repeat
  • 380847 2022-006
    Significant Deficiency Repeat
  • 957252 2022-005
    Significant Deficiency Repeat
  • 957253 2022-005
    Significant Deficiency Repeat
  • 957254 2022-005
    Significant Deficiency Repeat
  • 957255 2022-005
    Significant Deficiency Repeat
  • 957256 2022-005
    Significant Deficiency Repeat
  • 957257 2022-004
    Significant Deficiency Repeat
  • 957258 2022-004
    Significant Deficiency Repeat
  • 957259 2022-007
    Significant Deficiency
  • 957260 2022-008
    Significant Deficiency
  • 957261 2022-004
    Significant Deficiency Repeat
  • 957262 2022-007
    Significant Deficiency Repeat
  • 957263 2022-004
    Significant Deficiency Repeat
  • 957264 2022-007
    Significant Deficiency Repeat
  • 957265 2022-004
    Significant Deficiency Repeat
  • 957266 2022-007
    Significant Deficiency Repeat
  • 957267 2022-004
    Significant Deficiency Repeat
  • 957268 2022-007
    Significant Deficiency Repeat
  • 957269 2022-004
    Significant Deficiency Repeat
  • 957270 2022-007
    Significant Deficiency Repeat
  • 957271 2022-004
    Significant Deficiency Repeat
  • 957272 2022-004
    Significant Deficiency Repeat
  • 957274 2022-004
    Significant Deficiency Repeat
  • 957275 2022-004
    Significant Deficiency Repeat
  • 957276 2022-004
    Significant Deficiency Repeat
  • 957277 2022-004
    Significant Deficiency Repeat
  • 957278 2022-004
    Significant Deficiency Repeat
  • 957279 2022-004
    Significant Deficiency Repeat
  • 957280 2022-004
    Significant Deficiency Repeat
  • 957281 2022-004
    Significant Deficiency
  • 957282 2022-004
    Significant Deficiency
  • 957283 2022-004
    Significant Deficiency
  • 957284 2022-006
    Significant Deficiency Repeat
  • 957285 2022-006
    Significant Deficiency Repeat
  • 957286 2022-006
    Significant Deficiency Repeat
  • 957287 2022-006
    Significant Deficiency Repeat
  • 957288 2022-006
    Significant Deficiency Repeat
  • 957289 2022-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $7.94M
59.075 Shuttered Venue Operators Grant Program $2.12M
21.019 Coronavirus Relief Fund $2.10M
10.553 School Breakfast Program $1.96M
14.231 Emergency Solutions Grant Program $1.89M
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $1.16M
97.044 Assistance to Firefighters Grant $854,775
84.027 Special Education_grants to States $646,209
14.241 Housing Opportunities for Persons with Aids $551,043
16.803 Recovery Act - Eward Byrne Memorial Justice Assistance Grant (jag) Program/ Grants to States and Territories $460,148
14.239 Home Investment Partnerships Program $451,356
84.367 Improving Teacher Quality State Grants $443,406
10.555 National School Lunch Program $435,004
10.559 Summer Food Service Program for Children $428,786
14.218 Community Development Block Grants/entitlement Grants $395,904
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $281,306
10.582 Fresh Fruit and Vegetable Program $172,408
84.371 Striving Readers $165,919
84.424 Student Support and Academic Enrichment Program $149,904
10.558 Child and Adult Care Food Program $132,355
93.959 Block Grants for Prevention and Treatment of Substance Abuse $110,861
84.287 Twenty-First Century Community Learning Centers $109,836
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $100,000
84.010 Title I Grants to Local Educational Agencies $66,421
16.804 Recovery Act - Edward Byrne Memorial Justice Assistance Grant (jag) Program / Grants to Units of Local Government $60,270
84.365 English Language Acquisition State Grants $52,123
93.788 Opioid Str $50,988
84.048 Career and Technical Education -- Basic Grants to States $47,841
97.042 Emergency Management Performance Grants $41,155
16.922 Equitable Sharing Program $37,174
20.600 State and Community Highway Safety $34,665
84.173 Special Education_preschool Grants $30,757
10.542 Pandemic Ebt Food Benefits $27,595
84.196 Education for Homeless Children and Youth $15,969
45.310 Grants to States $4,892
84.425 Education Stabilization Fund $3,286
16.034 Coronavirus Emergency Supplemental Funding Program $11
97.083 Staffing for Adequate Fire and Emergency Response (safer) $-135,031