CITY OF MEDFORD

EIN: 046001400

UEI: DM7UUKSVYMR3

Data as of August 22, 2026

CITY OF MEDFORD10 audit years23 findings8 repeat
10
Audit Years
23
Total Findings
8
Repeat Findings

FY 2023-06-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on February 3, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by August 3, 2025 (384 days ago).

What is a management decision? →
2023-004
Reporting
MATERIAL WEAKNESSQUESTIONED COSTS

Claims support could only be provided by the School for two months. For one month, support was in the form of spreadsheets with tray counts in lieu of a point-of-sale system. For the other month, the tray count spreadsheets were accompanied by reports from the point-of-sale system. The point-of-sale system reports provided did not agree to the amounts claimed for reimbursement. The tray counts did not indicate whether the meal provided was paid, free or reduced. The claims for reimbursement submitted by the School used allocation percentages derived from prior year claims when estimating amounts to be claimed as paid, free and reduced. The tray count spreadsheets for the other months could not be located by the School. Cause: The Food Service Department did not maintain an adequate meal claiming system and the School did not adequately monitor its Food Service Department for compliance with Federal regulations. Effect: Tray counts are not an accurate representation of the meals served nor appropriate support for the purposes of submitting claims for reimbursement. The pass-through agency disallowed $25,085.69 of meals claimed. A lack of a point-of-sale system also does not adequately safeguard the assets of the school lunch program. Questioned Costs: $1,206,794.91, which represents the amounts reimbursed for fiscal year 2023 for claims submitted. Perspective Information: The months tested do not represent a statistically valid sample. Repeat Finding from Prior Year: No Recommendation: The City should utilize a point-of-sale system for tracking student meal counts and submitting claims for reimbursements. Amounts claimed should be reconciled to the point-of-sale system reports before submitting. Views of Responsible Official: Management agrees with the finding.

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2023-004 U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.553 & 10.555 Material Weakness in Internal Controls over Compliance and Compliance Finding Criteria: Per 7 CFR Part 225.9 (d)(5), the School must retain records that support its claims for meal reimbursements. Condition: Claims support could only be provided by the School for two months. For one month, support was in the form of spreadsheets with tray counts in lieu of a point-of-sale system. For the other month, the tray count spreadsheets were accompanied by reports from the point-of-sale system. The point-of-sale system reports provided did not agree to the amounts claimed for reimbursement. The tray counts did not indicate whether the meal provided was paid, free or reduced. The claims for reimbursement submitted by the School used allocation percentages derived from prior year claims when estimating amounts to be claimed as paid, free and reduced. The tray count spreadsheets for the other months could not be located by the School. Cause: The Food Service Department did not maintain an adequate meal claiming system and the School did not adequately monitor its Food Service Department for compliance with Federal regulations. Effect: Tray counts are not an accurate representation of the meals served nor appropriate support for the purposes of submitting claims for reimbursement. The pass-through agency disallowed $25,085.69 of meals claimed. A lack of a point-of-sale system also does not adequately safeguard the assets of the school lunch program. Questioned Costs: $1,206,794.91, which represents the amounts reimbursed for fiscal year 2023 for claims submitted. Perspective Information: The months tested do not represent a statistically valid sample. Repeat Finding from Prior Year: No Recommendation: The City should utilize a point-of-sale system for tracking student meal counts and submitting claims for reimbursements. Amounts claimed should be reconciled to the point-of-sale system reports before submitting. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Claims support could only be provided by the School for two months. For one month, support was in the form of spreadsheets with tray counts in lieu of a point-of-sale system. For the other month, the tray count spreadsheets were accompanied by reports from the point-of-sale system. The point-of-sale system reports provided did not agree to the amounts claimed for reimbursement. The tray counts did not indicate whether the meal provided was paid, free or reduced. The claims for reimbursement submitted by the School used allocation percentages derived from prior year claims when estimating amounts to be claimed as paid, free and reduced. The tray count spreadsheets for the other months could not be located by the School. Corrective Action Planned: In January 2023 DESE sent an auditor to review the Medford School Nutrition Program. Before this review, there was significantly limited oversight by the central office finance team. Almost no documents were prepared before the review as required by DESE. As a result of this audit a 58-item, 19-page Corrective Action Plan was issued to the district. A new district leader was assigned for departmental oversight. The district then had weekly meetings with DESE to address the corrective action plan, for this was the single largest CAP DESE has issued to any district of our size. Nearly $1.3 million in reimbursements were withheld from the district from approximately November 2022 through the end of the Fiscal Year. DESE issued the reimbursements with a nominal penalty during the summer of 2023. At the end of FY23, the district terminated the director of the program. We are now training several individuals in the MCPPO program for enhanced oversight. DESE forced an immediate return audit for FY24. This was an exceptional action as DESE has only rarely done this. The same reviewer attended and noted significant improvements as a result of district actions undertaken. As relates to this particular finding, the School Department has purchased and is consistently using a point of sale system for students to purchase their meals. The system is used to track all transactions. Anticipated Completion Date: 2/17/2025 Contact: Peter Cushing, Assistant Superintendent

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2023-005
Eligibility
MATERIAL WEAKNESS

Free or reduced meals applications could not be provided. The Food Service Department did not process free or reduced priced meals applications for the 2022-2023 school year. Cause: The School did not adequately monitor its Food Service Department for compliance with Federal regulations. Effect: Due to not maintaining an appropriate benefit issuance process, the School did not utilize benefit eligibility in the meals claiming process or notify families of their benefit status. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The City should process free and reduced-price meal applications at the beginning of the school year, notify the families of their benefit status and transfer the status on the application to the point-of-sale system to be used in the meals claiming process. Views of Responsible Official: Management agrees with the finding.

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2023-005 U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.553 & 10.555 Material Weakness in Internal Controls over Compliance and Compliance Finding Criteria: Per 7 CFR Part 245.6, the School must provide meal benefit forms for use by families in making application for free or reduced-price meals. The School must determine household eligibility for free or reduced priced meals either through direct certification of the application process at or about the beginning of the school year. Condition: Free or reduced meals applications could not be provided. The Food Service Department did not process free or reduced priced meals applications for the 2022-2023 school year. Cause: The School did not adequately monitor its Food Service Department for compliance with Federal regulations. Effect: Due to not maintaining an appropriate benefit issuance process, the School did not utilize benefit eligibility in the meals claiming process or notify families of their benefit status. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The City should process free and reduced-price meal applications at the beginning of the school year, notify the families of their benefit status and transfer the status on the application to the point-of-sale system to be used in the meals claiming process. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Free or reduced meals applications could not be provided. The Food Service Department did not process free or reduced priced meals applications for the 2022-2023 school year. Corrective Action Planned: The School District has hired a qualified leader for the School Nutrition Program in order to comply with the requirements of this program. Additionally, the school district has enrolled all but the Brooks Elementary School as Community Eligibility Provision (CEP) sites and we are no longer required to collect these forms. At the Brooks School, these forms were sent to families from the Brooks School during the FY24 school year. Despite the efforts of the school and Food Services Director, no forms were returned to the school. Presently the forms are not required for the Brooks as the CEP eligibility requirements were reduced from 40% to 25% for determination. Anticipated Completion Date: 2/15/2025 Contact: Peter Cushing, Assistant Superintendent

About Eligibility →
2023-006
Special Tests & Provisions
MATERIAL WEAKNESS

The Food Service Department did not perform its verification process by the date required by the state pass-through agency. Cause: The Food Service Department did not process free or reduced priced meals applications for the 2022-2023 school year. Effect: The School is not in compliance with federal regulations of the program. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to comply with the programs’ verification requirements in an accurate and timely manner. Views of Responsible Official: Management agrees with the finding.

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2023-006 U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.553 & 10.555 Material Weakness in Internal Controls over Compliance and Compliance Finding Criteria: Per 7 CFR Part 245.6a(c), the School must verify eligibility of children in a sample of household applications approved for free and reduced priced meal benefits for that school year. Condition: The Food Service Department did not perform its verification process by the date required by the state pass-through agency. Cause: The Food Service Department did not process free or reduced priced meals applications for the 2022-2023 school year. Effect: The School is not in compliance with federal regulations of the program. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to comply with the programs’ verification requirements in an accurate and timely manner. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: The Food Service Department did not perform its verification process by the date required by the state pass-through agency. Corrective Action Planned: No applications were submitted to be verified. The school district prompted caregivers on numerous occasions to return the forms without receiving any. Anticipated Completion Date: 2/17/2025 Contact: Peter Cushing, Assistant Superintendent

About Special Tests and Provisions →
2023-007
Procurement & Suspension/Debarment
REPEAT

Suspension and debarment compliance was not verified for five covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. The five vendors were ultimately verified as not being suspended or debarred from participating in federal awards. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2022-007. Recommendation: The City should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.

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2023-007 U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.553 & 10.555 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance was not verified for five covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. The five vendors were ultimately verified as not being suspended or debarred from participating in federal awards. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2022-007. Recommendation: The City should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Suspension and debarment compliance was not verified for five covered transactions. Corrective Action Planned: All Purchase Order requests that are associated with a federal government grant will all have an attached list showing the company is not on the debarment list. We will also update our School Contract language to include specific wording where the Vendor acknowledges the law and forfeits the contract if they are on the debarment list after the contract has been signed. A statement will be added to the contracts that states the following: ‘The Contractor (or use the term in the contract that identifies the vendor instead of Contractor) certifies under the pains and penalties of perjury, that the Contractor is not currently debarred or suspended by the Federal government, or any of its agencies, entities or subdivisions, nor is the Contractor currently debarred or suspended by the Commonwealth Massachusetts or any of its agencies, entities or subdivisions.’ If there is a section in the contract where the vendor certifies to other conditions (i.e. state taxes paid), then this language could be included under that section as another certification requirement. A Google Drive has been created to upload all supporting documents on a yearly basis. Anticipated Completion Date: 2/17/2025 Contact: Noel Velez, Director of Finance and Fiona Maxwell, Procurement Director

Prior Finding References

2022-007

About Procurement and Suspension and Debarment →
2023-008
Procurement & Suspension/Debarment
MATERIAL WEAKNESSQUESTIONED COSTS

Five vendors were awarded a contract without a competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The School is not in compliance with Federal procurement requirements. Questioned Costs: $131,341.65 Repeat Finding from Prior Year: No. Recommendation: The City should implement procedures to perform competitive procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.

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2023-008 U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster (IDEA) – ALN 84.027 & 84.173 COVID-19 – Special Education Cluster (IDEA) – ALN 84.027X & 84.173X Material Weakness in Internal Controls over Compliance and Compliance Finding Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: Five vendors were awarded a contract without a competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The School is not in compliance with Federal procurement requirements. Questioned Costs: $131,341.65 Repeat Finding from Prior Year: No. Recommendation: The City should implement procedures to perform competitive procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Five vendors were awarded a contract without a competitive procurement process. Corrective Action Planned: Complete competitive procurement will be done via the federal guidelines for Purchase Orders below and over the $50,000.00 threshold. This means upholding the laws laid out in 200.319 by allowing competitive bidding for each contract given out to a vendor by soliciting quotes and having a written internal procedure with the help of the audit team. We will create a Google folder to upload all supporting documents on a yearly basis. Anticipated Completion Date: 2/17/2025 Contact: Noel Velez, Director of Finance

About Procurement and Suspension and Debarment →
2023-009
Procurement & Suspension/Debarment

Suspension and debarment compliance was not verified for two covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. The two vendors were ultimately verified as not being suspended or debarred from participating in federal awards. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: The City should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.

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2023-009 U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster (IDEA) – ALN 84.027 & 84.173 COVID-19 – Special Education Cluster (IDEA) – ALN 84.027X & 84.173X Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance was not verified for two covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. The two vendors were ultimately verified as not being suspended or debarred from participating in federal awards. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: The City should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Suspension and debarment compliance was not verified for two covered transactions. Corrective Action Planned: All Purchase Order requests that are associated with a federal government grant will all have an attached list showing the company is not on the debarment list. We will also update our School Contract language to include specific wording where the Vendor acknowledges the law and forfeits the contract if they are on the debarment list after the contract has been signed. A statement will be added to the contracts that states the following: ‘The Contractor (or use the term in the contract that identifies the vendor instead of Contractor) certifies under the pains and penalties of perjury, that the Contractor is not currently debarred or suspended by the Federal government, or any of its agencies, entities or subdivisions, nor is the Contractor currently debarred or suspended by the Commonwealth Massachusetts or any of its agencies, entities or subdivisions.’ If there is a section in the contract where the vendor certifies to other conditions (i.e. state taxes paid), then this language could be included under that section as another certification requirement. A Google Drive has been created to upload all supporting documents on a yearly basis. Anticipated Completion Date: 2/17/2025 Contact: Noel Velez, Director of Finance and Fiona Maxwell, Procurement Director

About Procurement and Suspension and Debarment →
2023-010
Matching, Level of Effort, Earmarking
MATERIAL WEAKNESS

The City did not reconcile its 2021 and 2022 revenue loss calculations with the final adjusted general ledger. Calendar year 2021 revenue was understated by $5,040,960 and calendar year 2022 revenue was understated by $1,455,486 in the 2021 and 2022 revenue loss calculations, respectively. Cause: Numerous adjusting journal entries were posted to the City’s general ledger for state education aid that were not properly reflected in the revenue loss calculations. Effect: As of June 30, 2023, the City has yet to spend more than the revenue loss calculated, net of the understated revenue. However, the City is at risk of spending in excess of allowable revenue loss if the calculations are not updated and performed timely and accurately. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: Revenue loss calculations should be updated to reflect the accurate revenues of the City as posted on the general ledger. The City should implement procedures to reconcile future revenue loss calculations to the revenue as reported in the general ledger. Views of Responsible Official: Management agrees with the finding.

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2023-010 U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Material Weakness in Internal Controls over Compliance and Compliance Finding Criteria: Recipients can calculate lost revenue for the years 2020, 2021, 2022 and 2023 based on the formula provided in the Final Rule to determine the amount of SLFRF funds that can be used for the “provision of government services”. Condition: The City did not reconcile its 2021 and 2022 revenue loss calculations with the final adjusted general ledger. Calendar year 2021 revenue was understated by $5,040,960 and calendar year 2022 revenue was understated by $1,455,486 in the 2021 and 2022 revenue loss calculations, respectively. Cause: Numerous adjusting journal entries were posted to the City’s general ledger for state education aid that were not properly reflected in the revenue loss calculations. Effect: As of June 30, 2023, the City has yet to spend more than the revenue loss calculated, net of the understated revenue. However, the City is at risk of spending in excess of allowable revenue loss if the calculations are not updated and performed timely and accurately. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: Revenue loss calculations should be updated to reflect the accurate revenues of the City as posted on the general ledger. The City should implement procedures to reconcile future revenue loss calculations to the revenue as reported in the general ledger. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: The City did not reconcile its 2021 and 2022 revenue loss calculations with the final adjusted general ledger. Calendar year 2021 revenue was understated by $5,040,960 and calendar year 2022 revenue was understated by $1,455,486 in the 2021 and 2022 revenue loss calculations, respectively. Corrective Action Planned: Revenue reports for Calendar years 2020 - 2023 have been re-run and revenue loss calculations have been re-run by ARPA consultant for those years with results given to Auditors. Anticipated Completion Date: Complete Contact: Robert Dickinson, City Auditor

About Matching, Level of Effort, Earmarking →

FY 2022-06-30

FAC accepted this audit on December 18, 2023 — management decision was due June 18, 2024.

2022-003
Reporting

On the June 30, 2022 Project and Expenditure report the City reported $7,292,100 of obligations for expenditures that had yet to be specifically identified nor met the definition of an obligation. Cause: The City did not have a clear understanding of the reporting requirements for obligations. Effect: The City overstated the amounts obligated in the June 30, 2022 Project and Expenditure report. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to only report obligations on the Project and Expenditure reporting for items that meet the federal criteria for reporting as an obligation. Views of Responsible Official: Management agrees with the finding.

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U.S. Department of the Treasury COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – CFDA 21.027 Criteria: The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure. Per 2 CFR 200.1, an obligation is an order placed for property and services, contracts and subawards made, and similar transactions that require payment. Condition: On the June 30, 2022 Project and Expenditure report the City reported $7,292,100 of obligations for expenditures that had yet to be specifically identified nor met the definition of an obligation. Cause: The City did not have a clear understanding of the reporting requirements for obligations. Effect: The City overstated the amounts obligated in the June 30, 2022 Project and Expenditure report. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to only report obligations on the Project and Expenditure reporting for items that meet the federal criteria for reporting as an obligation. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: On the June 30, 2022 Project and Expenditure report the City reported $7,292,100 of obligations for expenditures that had yet to be specifically identified nor met the definition of an obligation. Corrective Action Planned: $7,292,100 was used to fund the FY 2023 operating budget. The funds were used to defray payroll expenses in the Police department, Fire Department, and School. For FY 2024 no ARPA funds were used to fund the operating expenses, so going forward no obligations will be incurred that aren’t specifically identified by the ARPA approval process. Anticipated Completion Date: Completed Contact: Robert Dickinson, City Auditor

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2022-004
Cost Allowability
QUESTIONED COSTS

An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.

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U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education COVID-19 – Education Stabilization Fund – CFDA 84.425 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR Part 200, charges to federal awards should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law) Condition: An employee charged to the grant was overpaid by $5,688.29. Cause: The employee’s final check was calculated manually and not reviewed and approved before being paid on a payroll warrant. Effect: The City charged an unallowable cost to the federal award. Questioned Costs: $5,688.29 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to review and approve all manual payroll calculations to ensure that the pay is calculated correctly. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: An employee charged to the grant was overpaid by $5,688.29. Corrective Action Planned: All grant accounts are being reviewed by the finance department prior to 2023 close. Finance has been coordinating with the School department to ensure all payments charged to grants are correct. Anticipated Completion Date: December 31, 2023 Contact: Robert Dickinson, City Auditor

About Allowable Costs / Cost Principles →
2022-005
Special Tests & Provisions
QUESTIONED COSTS

For one project, an invoice for design services performed in December 2021 was paid before the environmental review was completed on February 9, 2022. Also, the determination of categorical exclusion in the City’s files was not signed and dated. Cause: The City has not implemented procedures to ensure that environmental review files are complete before projects are started. Effect: The City is not in compliance with environmental review requirements. Questioned Costs: $4,785.41 Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to ensure that environmental reviews are completed and properly documented before funds are obligated to a project. Views of Responsible Official: Management agrees with the finding.

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U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster – CFDA 14.218 Criteria: Per 24 CFR sections 58.1, 58.22, 58.34 58.35 and 570.604, projects must have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from environmental certification requirements. Condition: For one project, an invoice for design services performed in December 2021 was paid before the environmental review was completed on February 9, 2022. Also, the determination of categorical exclusion in the City’s files was not signed and dated. Cause: The City has not implemented procedures to ensure that environmental review files are complete before projects are started. Effect: The City is not in compliance with environmental review requirements. Questioned Costs: $4,785.41 Repeat Finding from Prior Year: No Recommendation: The City should implement procedures to ensure that environmental reviews are completed and properly documented before funds are obligated to a project. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: For one project, an invoice for design services performed in December 2021 was paid before the environmental review was completed on February 9, 2022. Also, the determination of categorical exclusion in the City’s files was not signed and dated. Corrective Action Planned: Information was provided after the oversight was discovered. Anticipated Completion Date: Completed Contact: Robert Dickinson, City Auditor

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2022-006
Other
REPEAT

The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City’s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.

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U.S. Department of Education Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Special Education Cluster – CFDA 84.027 & 84.173 Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City’s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Corrective Action Planned: All grant accounts are being reviewed by the finance department prior to 2023 close. Accounts in deficit are being reviewed to determine the causes of the deficits and the appropriate action to take to resolve. Anticipated Completion Date: Fiscal year 2024 Contact: Robert Dickinson, City Auditor

Prior Finding References

2021-002

About Other →
2022-007
Procurement & Suspension/Debarment
REPEAT

Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.

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U.S. Department of Agriculture Passed-through the Commonwealth of Massachusetts’ Department of Elementary and Secondary Education Child Nutrition Cluster – CFDA 10.555 & 10.559 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2021-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Suspension and debarment compliance is not verified for all covered transactions. Corrective Action Planned: The School Comptroller will ensure that all vendors are checked using SAM for suspension and debarment for all covered transactions in compliance with federal laws. The School Comptroller will print out the support and include with each grant. Anticipated Completion Date: Completed Contact: Robert Dickinson, City Auditor

Prior Finding References

2021-003

About Procurement and Suspension and Debarment →

FY 2021-06-30

FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.

2021-002
Other
REPEAT

The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City?s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None. Repeat Finding from Prior Year: Yes; Finding 2020-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.

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Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City?s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None. Repeat Finding from Prior Year: Yes; Finding 2020-002. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Corrective Action Planned: The School has hired a Comptroller, created a grant management position, and has an Assistant Superintendent of Finance to ensure compliance with grant awards. The Comptroller will implement reconciliation procedures and work with the grant manager. The Comptroller will transfer surplus funds to cover the deficit identified. Anticipated Completion Date: Fiscal year 2023 Contact: Robert Dickinson, City Auditor

Prior Finding References

2020-002

About Other →
2021-003
Procurement & Suspension/Debarment
REPEAT

Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2020-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.

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Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: Yes; Finding 2020-003. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Suspension and debarment compliance is not verified for all covered transactions. Corrective Action Planned: The Comptroller will ensure that all vendors are checked using SAM for suspension and debarment for all covered transactions in compliance with federal laws. The Comptroller will print out the support and include with each grant. Anticipated Completion Date: 2021-2022 school year Contact: Robert Dickinson, City Auditor

Prior Finding References

2020-003

About Procurement and Suspension and Debarment →

FY 2020-06-30

FAC accepted this audit on June 22, 2021 — management decision was due December 22, 2021.

2020-001
Procurement & Suspension/Debarment
REPEATQUESTIONED COSTS

Two vendors were awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $58,946.08 Repeat Finding from Prior Year: Yes; Finding 2019-002. Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.

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Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: Two vendors were awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $58,946.08 Repeat Finding from Prior Year: Yes; Finding 2019-002. Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Two vendors were awarded a contract without a proper competitive procurement process. Corrective Action Planned: The City has a new CPO who is providing procurement training to all departments within the City including the Schools. In addition, the new CPO has created a reference policy document for departments to review when procuring goods and services. The School will implement procedures to perform procurement in compliance with state and federal laws. Anticipated Completion Date: December 31, 2021 Contact: Aleesha Nunley-Benjamin, City Auditor

Prior Finding References

2019-002

About Procurement and Suspension and Debarment →
2020-002
Other
REPEAT

The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City?s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None. Repeat Finding from Prior Year: Yes; Finding 2019-003. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.

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Full finding narrative

Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City?s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None. Repeat Finding from Prior Year: Yes; Finding 2019-003. Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Corrective Action Planned: The School has hired a Comptroller, created a grant management position, and has an Assistant Superintendent of Finance to ensure compliance with grant awards. The Comptroller will implement reconciliation procedures and work with the grant manager. The Comptroller will transfer surplus funds to cover the deficit identified. Anticipated Completion Date: December 31, 2021 Contact: Aleesha Nunley-Benjamin, City Auditor

Prior Finding References

2019-003

About Other →
2020-003
Procurement & Suspension/Debarment

Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.

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Criteria: Per 2 CFR section 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Suspension and debarment compliance is not verified for all covered transactions. Cause: Lack of appropriate oversight resulted in required debarment checks not being performed or the appropriate certifications signed by the vendors. Effect: Grant transactions are not supported adequately, and the School is at risk of awarding contracts to vendors not eligible to participate in federal awards programs. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: The School should implement procedures to document that all contractors under covered transactions that are performing services for the grant are not suspended or debarred. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Suspension and debarment compliance is not verified for all covered transactions. Corrective Action Planned: The Comptroller will ensure that all vendors are checked using SAM for suspension and debarment for all covered transactions in compliance with federal laws. The Comptroller will print out the support and include with each grant. Anticipated Completion Date: June 30, 2021 Contact: Aleesha Nunley-Benjamin, City Auditor

About Procurement and Suspension and Debarment →
2020-004
Program Income
QUESTIONED COSTS

For 2 of the 96 selections tested, not all of the program income generated from sale of school lunches was deposited with the City Treasurer. Cause: Lack of staff training and inadequate review procedures of the daily deposits. Effect: Program income is not properly reported and the program is susceptible to misappropriation of funds. Questioned Costs: $400.00 Repeat Finding from Prior Year: No. Recommendation: The School should implement procedures to ensure that all program income generated by the school lunch program is deposited timely with the City Treasurer. Views of Responsible Official: Management agrees with the finding.

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Criteria: Program income, as defined in 2 CFR section 200.307, generated by federal grants should be properly recorded in the accounting records. Condition: For 2 of the 96 selections tested, not all of the program income generated from sale of school lunches was deposited with the City Treasurer. Cause: Lack of staff training and inadequate review procedures of the daily deposits. Effect: Program income is not properly reported and the program is susceptible to misappropriation of funds. Questioned Costs: $400.00 Repeat Finding from Prior Year: No. Recommendation: The School should implement procedures to ensure that all program income generated by the school lunch program is deposited timely with the City Treasurer. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: For 2 of the 96 selections tested, not all of the program income generated from sale of school lunches was deposited with the City Treasurer. Corrective Action Planned: The Comptroller will ensure all program income is reported, reconciled, and timely deposited to the City Treasurer for the school lunch program. Anticipated Completion Date: June 30, 2021 Contact: Aleesha Nunley-Benjamin, City Auditor

About Program Income →

FY 2019-06-30

FAC accepted this audit on June 15, 2020 — management decision was due December 15, 2020.

2019-002
Procurement & Suspension/Debarment
QUESTIONED COSTS

Two vendors were awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $59,232.78 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.

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Criteria: Per 2 CFR section 200.319, procurements must provide for full and open competition. Condition: Two vendors were awarded a contract without a proper competitive procurement process. Cause: The School relied on State procurement exemptions which do not apply to Federal procurements. Effect: The City is not in compliance with Federal procurement requirements. Questioned Costs: $59,232.78 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to perform procurement procedures on all applicable contracts for goods and services. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Two vendors were awarded a contract without a proper competitive procurement process. Corrective Action Planned: The School Finance Director was not aware of these changes and has informed the appropriate personnel to prevent this issue going forward. Anticipated Completion Date: Fiscal year 2021 Contact: Aleesha Nunley-Benjamin, City Auditor

About Procurement and Suspension and Debarment →
2019-003
Other

The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City?s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None. Repeat Finding from Prior Year: No Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.

Show full finding ▾
Full finding narrative

Criteria: Grant revenues should offset approved grant expenditures. All activity that is deemed non-grant related should be recorded to the appropriate fund. Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Cause: The grant budgets in the City?s general ledger did not properly reflect the amount available to spend. Effect: The City has a deficit in its special revenue funds that must be funded from non-grant sources. Questioned Costs: None. Repeat Finding from Prior Year: No Recommendation: The School should implement reconciliation procedures to ensure that grants are not overspent. The City should transfer other surplus funds to the grant fund or raise the deficit as part of the next tax rate setting process. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: The SPED entitlement grant fund is overspent on the ledger by approximately $120,000. Corrective Action Planned: The School Finance Director has been advised by the City Auditor to hire a grant manager to prevent mismanagement. Anticipated Completion Date: Fiscal year 2021 Contact: Aleesha Nunley-Benjamin, City Auditor

About Other →

FY 2018-06-30

FAC accepted this audit on April 17, 2019 — management decision was due October 17, 2019.

2018-002
Period of Performance
MATERIAL WEAKNESSREPEATQUESTIONED COSTS

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2017-001

About Period of Performance →
2018-003
Reporting

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

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FY 2017-06-30

FAC accepted this audit on March 29, 2018 — management decision was due September 29, 2018.

2017-001
Period of Performance
QUESTIONED COSTS

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

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