FAC Explorer

Finding 1161436 (2024-011)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2024
Accepted
2025-10-27
Audit: 371295
Organization: City of Auburn, Maine (ME)
Auditor: RUNYON KERSTEEN OUELLETTE

AI Summary

  • Core Issue: The City failed to conduct required risk assessments and review audit findings for subrecipients under the HOME program.
  • Impacted Requirements: Noncompliance with 2 CFR §200.331(b) and §200.332(d) regarding monitoring and follow-up on audit findings.
  • Recommended Follow-Up: Establish formal procedures for risk assessments and annual reviews of subrecipient audit reports to ensure compliance and address any identified issues.

Finding Text

2024-011 U.S. Department of Housing and Urban Development, For the period July 1, 2023, through June 30, 2024, ALN # 14.239– HOME Investment Partnerships Program Criteria: Per 2 CFR §200.331(b), pass-through entities must evaluate each subrecipient’s risk of noncompliance with federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. Furthermore, 2 CFR §200.332(d) requires pass-through entities to follow up on any audit findings identified in subrecipients’ Single Audit reports that pertain to the federal award. Condition: The City did not perform a documented risk assessment of subrecipients under the HOME program to determine the appropriate level and type of monitoring. Additionally, the City did not obtain or review subrecipients’ Single Audit reports to identify and follow up on any findings related to the HOME program. Two of the four contracts with expenditures in fiscal year 2024 were tested. Cause: The City has not established formal procedures to assess subrecipient risk or to review and follow up on audit findings related to the HOME program. Effect: Without a documented risk assessment and review of subrecipient audit reports: • The City may not tailor its monitoring procedures appropriately, increasing the risk of undetected noncompliance. • Potential issues identified in subrecipient audits may go unaddressed, jeopardizing the integrity of the program and federal funding. Recommendation: The City should implement formal procedures to conduct and document risk assessments for all subrecipients of the HOME program, obtain and review subrecipient Single Audit reports annually, follow up on any findings related to the HOME program to ensure corrective actions are taken. Questioned Costs: none

Corrective Action Plan

Management Response/Corrective Action Plan: During the audit period, the City monitored subrecipient performance through the review of required supporting documentation submitted with each individual fund requisition and draw request. This process provided assurance that costs charged to the program were eligible and supported. The City also self identified one instance within this process where a consortium member subrecipient did not complete a Single Audit as required. City staff consulted with HUD on this matter and were advised by HUD staff to continue processing payments while HUD worked directly with the subrecipient to bring them back into compliance.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 1161422 2024-009
    Material Weakness Repeat
  • 1161423 2024-009
    Material Weakness Repeat
  • 1161424 2024-009
    Material Weakness Repeat
  • 1161425 2024-009
    Material Weakness Repeat
  • 1161426 2024-009
    Material Weakness Repeat
  • 1161427 2024-009
    Material Weakness Repeat
  • 1161428 2024-009
    Material Weakness Repeat
  • 1161429 2024-008
    Material Weakness Repeat
  • 1161430 2024-008
    Material Weakness Repeat
  • 1161431 2024-008
    Material Weakness Repeat
  • 1161432 2024-010
    Material Weakness Repeat
  • 1161433 2024-010
    Material Weakness Repeat
  • 1161434 2024-010
    Material Weakness Repeat
  • 1161435 2024-011
    Material Weakness Repeat
  • 1161437 2024-006
    Material Weakness Repeat
  • 1161438 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds $3.17M
84.425 COVID-19 - Elementary and Secondary School Emergency Relief III $2.28M
20.205 Highway Planning and Construction - Mill Street and Main Street $1.96M
14.218 Community Development Block Grant - Entitlement $1.55M
84.010 Title IA $1.07M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $949,284
84.027 Special Education - Grants to States (IDEA, Part B) $708,495
20.205 Highway Planning and Construction - Hotel Rd $539,369
10.553 SCHOOL BREAKFAST PROGRAM $313,345
14.905 LEAD HAZARD REDUCTION DEMONSTRATION GRANT PROGRAM $230,209
84.367 Title IIA - Supporting Effective Instruction $225,545
84.287 21st Century - Community Learning Center $204,260
14.239 COVID-19 - Home Investment Partnership Program $165,200
84.425 COVID-19 - Literacy Grant $143,570
14.239 Home Investment Partnership Program $120,454
10.555 Donated Commodities $117,497
84.424 Title IV - Student Support and Academic Enrichment $78,041
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $77,002
10.555 State Administrative Expenses for Child Nutrition: Supply Chain Assistance $74,210
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $68,647
16.922 EQUITABLE SHARING PROGRAM $59,073
84.425 COVID-19 - Multilingual Learners Experiencing Homelessness $58,877
14.218 COVID-19 - Community Development Block Grant - Entitlement $55,722
84.425 COVID-19 - Elementary and Secondary School Emergency Relief II $53,649
97.067 HOMELAND SECURITY GRANT PROGRAM $29,560
20.205 Highway Planning and Construction - Turner Street Safety $27,758
84.365 Title III - Language Acquisition $26,064
84.173 Special Education - Preschool Grants (IDEA Preschool) $23,614
20.205 Highway Planning and Construction - Traffic Signals $21,916
10.558 Child and Adult Care Food Program $20,736
20.205 Highway Planning and Construction - Turner Dennison $17,988
84.002 Adult Basic Education $15,502
20.600 Speed Enforcement Program $11,512
84.010 Title IA - Program Improvement $10,961
16.607 Bullet Proof Vest $10,865
10.675 Project Canopy: Urban and Community Forestry Program $7,876
84.425 COVID-19 - Homeless Children and Youth II $7,784
16.738 Edward Byrne Justice Assistance Grant $6,458
10.649 COVID-19 - Pandemic EBT Administrative Costs: SNAP $5,224
10.555 After School Snack Program $953
14.218 Community Development Block Grant - Entitlement - School Department $911