2014 state audit of the city of Portsmouth finds problems

First Posted: 2:56 pm - October 9th, 2015

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By Frank Lewis

[email protected]

According to the 2014 state audit, the Portsmouth City Health Department must have individual funds for each state or federal grant. The audit says currently some grants are being managed together under a single fund, so Portsmouth City Manager Derek K. Allen will present legislation to City Council to establish three funds: HIV Prevention, Injury Prevention and Public Health Emergency Preparedness.

The finding shows appropriation authority in variance with estimated resources in several of the city’s funds. As an example, the Federal Rural Aids Grant Fund shows estimated resources at $240,731 and appropriation authority at $424,503 for a variance of $183,772. In addition there was a $623,107 variance in the Waste Water Revenue B Fund and a $439,278 variance in the Sewage System Revenue Fund.

In response, the city said – “Some appropriations were in excess of estimated current resources due to deficit fund conditions. It is anticipated that these fund deficits will be corrected by the end of 2016. This correction should resolve appropriations in excess of estimated resources.”

Under the title, “Noncompliance and Material Weakness,” the finding calls for government entities to list individual federal programs by federal agency. For federal programs included in a cluster of programs, list individual federal programs within a cluster of programs. For research and development, total federal awards expended shall be shown either by individual award of by federal agency and major subdivision within the federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services.”

During 2014 the city received and spent federal grant monies relating to 16 federal programs and the federal schedule only contained 13 federal programs where the final adjusted schedule had 16. The city-prepared federal schedule total expenditure amount was understated by $2,582,021 and certain federal grants were co-mingled by the city in the same fund.

Reach Frank Lewis at 740-353-3101, ext. 1928, or on Twitter @franklewis.



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