Audit 299250

FY End
2023-06-30
Total Expended
$23.04M
Findings
20
Programs
21
Organization: City of Newton, Massachusetts (MA)
Year: 2023 Accepted: 2024-03-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
386922 2023-001 Significant Deficiency - I
386923 2023-001 Significant Deficiency - I
386924 2023-001 Significant Deficiency - I
386925 2023-001 Significant Deficiency - I
386926 2023-002 Significant Deficiency - A
386927 2023-002 Significant Deficiency - A
386928 2023-002 Significant Deficiency - A
386929 2023-002 Significant Deficiency - A
386930 2023-003 Material Weakness - M
386931 2023-004 Material Weakness - N
963364 2023-001 Significant Deficiency - I
963365 2023-001 Significant Deficiency - I
963366 2023-001 Significant Deficiency - I
963367 2023-001 Significant Deficiency - I
963368 2023-002 Significant Deficiency - A
963369 2023-002 Significant Deficiency - A
963370 2023-002 Significant Deficiency - A
963371 2023-002 Significant Deficiency - A
963372 2023-003 Material Weakness - M
963373 2023-004 Material Weakness - N

Contacts

Name Title Type
PAK6PY31SJ53 Stephen Curley Auditee
6177961300 Matthew Scott Hunt Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 – U.S. DEPARTMENT OF AGRICULTURE PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Newton, Massachusetts and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: N/A The amount reported for the National School Lunch Program – Non-Cash Assistance (Commodities) represents nonmonetary assistance and is reported in the schedule at the fair market value of the commodities received. The amounts reported for the National School Breakfast and Lunch Programs – Cash Assistance represent cash receipts from federal reimbursements.
Title: NOTE 4 – U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Newton, Massachusetts and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: N/A The amount reported for the Medical Assistance Program represents federal cash receipts related to Administrative Activity Claims.

Finding Details

UNITED STATES DEPARTMENT OF EDUCATION Significant Deficiency in Internal Control over Compliance 2023-001 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For the one vendor in our audit sample, documentation was not provided to support that the City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities for the fiscal year 2023 time period. Questioned Costs: None. The vendor was not suspended or debarred. Cause: Procedures were not adhered to for the documentation of the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF EDUCATION Significant Deficiency in Internal Control over Compliance 2023-001 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For the one vendor in our audit sample, documentation was not provided to support that the City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities for the fiscal year 2023 time period. Questioned Costs: None. The vendor was not suspended or debarred. Cause: Procedures were not adhered to for the documentation of the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF EDUCATION Significant Deficiency in Internal Control over Compliance 2023-001 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For the one vendor in our audit sample, documentation was not provided to support that the City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities for the fiscal year 2023 time period. Questioned Costs: None. The vendor was not suspended or debarred. Cause: Procedures were not adhered to for the documentation of the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF EDUCATION Significant Deficiency in Internal Control over Compliance 2023-001 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For the one vendor in our audit sample, documentation was not provided to support that the City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities for the fiscal year 2023 time period. Questioned Costs: None. The vendor was not suspended or debarred. Cause: Procedures were not adhered to for the documentation of the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding.
Significant Deficiency in Internal Control over Compliance 2023-002 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Costs/Cost Principles Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: For all of the payroll disbursements in our sample, evidence of management review of time and effort was not provided. Questioned Costs: None. Cause: Procedures were not in place to document the management review of time and effort. Effect: Significant deficiency in internal controls. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document and maintain on file the management review of time and effort. Views of Responsible Officials: Management agrees with the finding.
Significant Deficiency in Internal Control over Compliance 2023-002 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Costs/Cost Principles Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: For all of the payroll disbursements in our sample, evidence of management review of time and effort was not provided. Questioned Costs: None. Cause: Procedures were not in place to document the management review of time and effort. Effect: Significant deficiency in internal controls. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document and maintain on file the management review of time and effort. Views of Responsible Officials: Management agrees with the finding.
Significant Deficiency in Internal Control over Compliance 2023-002 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Costs/Cost Principles Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: For all of the payroll disbursements in our sample, evidence of management review of time and effort was not provided. Questioned Costs: None. Cause: Procedures were not in place to document the management review of time and effort. Effect: Significant deficiency in internal controls. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document and maintain on file the management review of time and effort. Views of Responsible Officials: Management agrees with the finding.
Significant Deficiency in Internal Control over Compliance 2023-002 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Costs/Cost Principles Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: For all of the payroll disbursements in our sample, evidence of management review of time and effort was not provided. Questioned Costs: None. Cause: Procedures were not in place to document the management review of time and effort. Effect: Significant deficiency in internal controls. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document and maintain on file the management review of time and effort. Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Material Weakness in Internal Control over Compliance and Material Noncompliance 2023-003 HOME Investment Partnership Program, ALN. 14.239 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Subrecipient Monitoring Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.332 – Requirements for Pass- Through Entities states, in part, that all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition and Context: For one (1) vendor in our sample of five (5) in a population of 13, documentation of monitoring was not provided. For one (1) vendor in our sample of five (5) in a population of 13, there was no evidence of management review of monitoring procedures. Questioned Costs: None Cause: Procedures were not in place to fully document subrecipient monitoring for all subrecipients. Effect: Noncompliance with the federal grant program occurred. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to fully document subrecipient monitoring for all subrecipients. Views of Responsible Officials: Management agrees with the finding.
Material Weakness in Internal Control over Compliance and Material Noncompliance 2023-004 HOME Investment Partnership Program, ALN. 14.239 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Special Tests and Provisions Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 24 Part 92.504(d) states that during the period of affordability, the participating jurisdiction must perform on-site inspections of HOME-assisted rental housing to determine compliance with the property standards of § 92.251 and to verify the information submitted by the owners in accordance with the requirements of § 92.252. The inspections must be in accordance with the inspection procedures that the participating jurisdiction establishes to meet the inspection requirements of § 92.251. Condition and Context: For one (1) out of nine (9) inspections selected for testing in our audit sample, the inspection was not conducted within the required timeframe in accordance with federal requirements. Questioned Costs: None Cause: Procedures were not in place to perform inspections timely for all inspections. Effect: Noncompliance with the federal grant program occurred. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to perform inspections timely for all inspections. Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF EDUCATION Significant Deficiency in Internal Control over Compliance 2023-001 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For the one vendor in our audit sample, documentation was not provided to support that the City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities for the fiscal year 2023 time period. Questioned Costs: None. The vendor was not suspended or debarred. Cause: Procedures were not adhered to for the documentation of the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF EDUCATION Significant Deficiency in Internal Control over Compliance 2023-001 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For the one vendor in our audit sample, documentation was not provided to support that the City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities for the fiscal year 2023 time period. Questioned Costs: None. The vendor was not suspended or debarred. Cause: Procedures were not adhered to for the documentation of the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF EDUCATION Significant Deficiency in Internal Control over Compliance 2023-001 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For the one vendor in our audit sample, documentation was not provided to support that the City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities for the fiscal year 2023 time period. Questioned Costs: None. The vendor was not suspended or debarred. Cause: Procedures were not adhered to for the documentation of the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF EDUCATION Significant Deficiency in Internal Control over Compliance 2023-001 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Suspension and Debarment Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.214 states that nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition and Context: For the one vendor in our audit sample, documentation was not provided to support that the City verified the vendor was not debarred or suspended from participation in Federal assistance programs or activities for the fiscal year 2023 time period. Questioned Costs: None. The vendor was not suspended or debarred. Cause: Procedures were not adhered to for the documentation of the verification that all vendors were not suspended or debarred from participation in Federal assistance programs or activities. Effect: While this did not occur in the instances identified in this finding, lack of verification of vendors’ debarment or suspension status could cause federal grant funds to be expended with vendors that are excluded from participation in Federal assistance programs or activities. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document the verification that all vendors are not suspended or debarred from participation in Federal assistance programs or activities. Views of Responsible Officials: Management agrees with the finding.
Significant Deficiency in Internal Control over Compliance 2023-002 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Costs/Cost Principles Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: For all of the payroll disbursements in our sample, evidence of management review of time and effort was not provided. Questioned Costs: None. Cause: Procedures were not in place to document the management review of time and effort. Effect: Significant deficiency in internal controls. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document and maintain on file the management review of time and effort. Views of Responsible Officials: Management agrees with the finding.
Significant Deficiency in Internal Control over Compliance 2023-002 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Costs/Cost Principles Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: For all of the payroll disbursements in our sample, evidence of management review of time and effort was not provided. Questioned Costs: None. Cause: Procedures were not in place to document the management review of time and effort. Effect: Significant deficiency in internal controls. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document and maintain on file the management review of time and effort. Views of Responsible Officials: Management agrees with the finding.
Significant Deficiency in Internal Control over Compliance 2023-002 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Costs/Cost Principles Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: For all of the payroll disbursements in our sample, evidence of management review of time and effort was not provided. Questioned Costs: None. Cause: Procedures were not in place to document the management review of time and effort. Effect: Significant deficiency in internal controls. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document and maintain on file the management review of time and effort. Views of Responsible Officials: Management agrees with the finding.
Significant Deficiency in Internal Control over Compliance 2023-002 Special Education Cluster, ALN. 84.027, 84.173 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Costs/Cost Principles Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: For all of the payroll disbursements in our sample, evidence of management review of time and effort was not provided. Questioned Costs: None. Cause: Procedures were not in place to document the management review of time and effort. Effect: Significant deficiency in internal controls. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to document and maintain on file the management review of time and effort. Views of Responsible Officials: Management agrees with the finding.
UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Material Weakness in Internal Control over Compliance and Material Noncompliance 2023-003 HOME Investment Partnership Program, ALN. 14.239 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Subrecipient Monitoring Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.332 – Requirements for Pass- Through Entities states, in part, that all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition and Context: For one (1) vendor in our sample of five (5) in a population of 13, documentation of monitoring was not provided. For one (1) vendor in our sample of five (5) in a population of 13, there was no evidence of management review of monitoring procedures. Questioned Costs: None Cause: Procedures were not in place to fully document subrecipient monitoring for all subrecipients. Effect: Noncompliance with the federal grant program occurred. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to fully document subrecipient monitoring for all subrecipients. Views of Responsible Officials: Management agrees with the finding.
Material Weakness in Internal Control over Compliance and Material Noncompliance 2023-004 HOME Investment Partnership Program, ALN. 14.239 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Special Tests and Provisions Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 24 Part 92.504(d) states that during the period of affordability, the participating jurisdiction must perform on-site inspections of HOME-assisted rental housing to determine compliance with the property standards of § 92.251 and to verify the information submitted by the owners in accordance with the requirements of § 92.252. The inspections must be in accordance with the inspection procedures that the participating jurisdiction establishes to meet the inspection requirements of § 92.251. Condition and Context: For one (1) out of nine (9) inspections selected for testing in our audit sample, the inspection was not conducted within the required timeframe in accordance with federal requirements. Questioned Costs: None Cause: Procedures were not in place to perform inspections timely for all inspections. Effect: Noncompliance with the federal grant program occurred. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to perform inspections timely for all inspections. Views of Responsible Officials: Management agrees with the finding.