Audit 395867

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 240-000558-2024-0308, 240-000558-2025-0308, 262-000559-2024-0308, 262-000559-2025-0308, 274-000662-2024-0308, and 274-000662-2025-0308 Award Period: July 1, 2024 - June 30, 2025 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Condition: Internal controls were not in place to ensure proper federal procurement standards were being followed for transactions that were transferred to the federal grant. Questioned costs: $26,648 Context: For 1 of 5 contracts tested, we identified that expenses were transferred to a federal grant and the underlying contracts were not in compliance with federal procurement requirements. Cause: Procedures are not in place to ensure proper federal procurement standards were being met prior to transferring expenses to a federal grant. Effect: Noncompliance with federal procurement compliance requirements. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2024-003. Recommendation: We recommend management implement procedures to ensure expenses transferred to a federal grant are meeting federal procurement standards. Views of responsible officials: There is no disagreement with the audit finding.