FAC Explorer

Finding 967251 (2023-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-04-01
Audit: 301530
Organization: City of Portland Maine (ME)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The City reported expenditures inaccurately, understating them by about $21 million, leading to noncompliance with federal reporting requirements.
  • Impacted Requirements: Compliance with the American Rescue Plan Act's reporting guidelines is essential for maintaining effective internal controls over federal funds.
  • Recommended Follow-Up: The City should ensure accurate reporting of expenditures in all future quarterly and annual reports to meet compliance standards.

Finding Text

2023-005 Improve Compliance with American Rescue Plan Reporting Federal Agency: U.S. Department of Treasury Cluster/Program: State and Local Fiscal Recovery Funds Award Name: State and Local Fiscal Recovery Funds AL Number(s): 21.027 Award Year: 2023 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement Grantees are required to report financial information to the grantor agency in accordance with the requirements set forth by the Federal awarding agency. Management 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 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 We tested the City’s use of American Rescue Plan Act funds with amounts reported to the Treasury Department as of June 30, 2023. We determined that life-to-date expenditures reported were understated by approximately $21 million. Effect or Potential Effect The City is not in compliance with grant requirements over reporting. No questioned costs are noted as the issue relates only to the amount reported to the Treasury Department. Cause Weaknesses in the operation of controls.Recommendation The City should accurately report life-to-date expenditures in quarterly and annual Project and Expenditures Reports in order to comply with reporting guidelines. Views of Responsible Official and Planned Corrective Action Management’s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 390807 2023-003
    Material Weakness Repeat
  • 390808 2023-004
    Material Weakness Repeat
  • 390809 2023-005
    Significant Deficiency
  • 390810 2023-003
    Material Weakness Repeat
  • 390811 2023-003
    Material Weakness Repeat
  • 967249 2023-003
    Material Weakness Repeat
  • 967250 2023-004
    Material Weakness Repeat
  • 967252 2023-003
    Material Weakness Repeat
  • 967253 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4.47M
20.106 Airport Improvement Program $3.51M
84.010 Title I Grants to Local Educational Agencies $1.94M
14.218 Community Development Block Grants/entitlement Grants $1.69M
14.239 Home Investment Partnerships Program $1.07M
10.553 School Breakfast Program $854,574
97.024 Emergency Food and Shelter National Board Program $836,501
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $781,615
20.205 Highway Planning and Construction $702,784
84.367 Improving Teacher Quality State Grants $521,656
14.231 Emergency Solutions Grant Program $518,520
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $429,213
93.940 Hiv Prevention Activities_health Department Based $390,533
11.454 Unallied Management Projects $389,981
84.027 Special Education_grants to States $341,613
16.753 Congressionally Recommended Awards $266,833
10.565 Commodity Supplemental Food Program $248,403
84.365 English Language Acquisition State Grants $238,717
84.424 Student Support and Academic Enrichment Program $232,205
10.559 Summer Food Service Program for Children $226,711
84.048 Career and Technical Education -- Basic Grants to States $218,490
21.027 Coronavirus State and Local Fiscal Recovery Funds $193,914
10.558 Child and Adult Care Food Program $187,049
16.922 Equitable Sharing Program $173,572
16.738 Edward Byrne Memorial Justice Assistance Grant Program $159,330
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $142,810
93.069 Public Health Emergency Preparedness $132,011
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $121,256
21.019 Coronavirus Relief Fund $108,305
16.575 Crime Victim Assistance $102,328
93.566 Refugee and Entrant Assistance_state Administered Programs $100,755
97.044 Assistance to Firefighters Grant $99,480
97.072 Explosives Detection Canine Team Program $88,357
10.582 Fresh Fruit and Vegetable Program $81,441
15.904 Historic Preservation Fund Grants-in-Aid $67,742
16.710 Public Safety Partnership and Community Policing Grants $67,726
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $65,201
84.002 Adult Education - Basic Grants to States $49,863
93.959 Block Grants for Prevention and Treatment of Substance Abuse $43,763
93.575 Child Care and Development Block Grant $40,817
59.075 Shuttered Venue Operators Grant Program $23,479
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $19,713
93.788 Opioid Str $15,098
10.649 Pandemic Ebt Administrative Costs $9,420
84.173 Special Education_preschool Grants $8,730
97.056 Port Security Grant Program $8,242
97.032 Crisis Counseling $7,178
16.609 Project Safe Neighborhoods $6,230
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $5,450
84.196 Education for Homeless Children and Youth $4,457
16.034 Coronavirus Emergency Supplemental Funding Program $3,174
84.425 Education Stabilization Fund $978
10.555 National School Lunch Program $782
93.136 Injury Prevention and Control Research and State and Community Based Programs $-410
97.067 Homeland Security Grant Program $-17,312