FAC Explorer

Finding 957288 (2022-006)

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

AI Summary

  • Core Issue: The City has not maintained proper records for equipment and real property purchased with federal funds, leading to noncompliance with federal guidelines.
  • Impacted Requirements: Internal controls over compliance are weak, affecting the management of equipment valued at $5,000 or more, as outlined in federal regulations.
  • Recommended Follow-Up: The City should strengthen internal controls to ensure proper management and accounting of federally funded equipment, as this is a repeat finding from the previous year.

Finding Text

2022-006 Update Federal Equipment/Real Property Listings Federal Agency: U.S. Department of Education Award Name: COVID-19 – Education Stabilization Fund AL Number(s): 84.425 Award Year: 2021 Compliance Requirement: Equipment/Real Property Management Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Title to equipment acquired by a non-federal entity with federal awards vests with the non-federal entity. Equipment means tangible nonexpendable property, including exempt prop¬erty, charged directly to the award having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. However, consistent with a non-federal entity’s policy, lower limits may be established. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state. Local governments and Indian tribes shall follow the A-102 Common Rule for equipment ac-quired under federal awards received directly from a federal awarding agency. The A-102 Com-mon Rule and OMB Circular A-110 require that equipment be used in the program for which it was acquired or, when appropriate, other federal programs. Equipment records shall be main-tained, a physical inventory of equipment shall be taken at least once every 2 years and recon-ciled to the equipment records, an appropriate control system shall be used to safeguard equip-ment, and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal pro¬gram, it may be retained or sold with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. Proper sales proce-dures shall be used that provide for competition to the extent practicable and result in the highest possible return. Management is also responsible for establishing and maintaining effective internal controls 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 management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Property records for equipment/real property purchased with federal funds have not been maintained. Cause Weaknesses in the design and implementation of internal controls. Effect or Potential Effect Due to the weaknesses in internal control noted above, ethe City is not in compliance with federal guidelines. No questioned costs are reported as it is not quantifiable. Identification as Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-006. Recommendation The City should address the weaknesses in internal controls noted above in order to provide reasonable assurance that equipment/real property purchased with federal awards is properly managed and accounted for in compliance with federal guidelines. 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

Equipment & Real Property Management

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
  • 957273 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
  • 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