FAC Explorer

Finding 1166164 (2022-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2025-12-22
Audit: 377065
Organization: City of Watertown (MA)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The City lacks written policies and procedures for managing federal awards, violating OMB's Uniform Guidance.
  • Impacted Requirements: Key areas missing documentation include allowable costs, employee travel, cash management, procurement, conflicts of interest, and subrecipient monitoring.
  • Recommended Follow-Up: The City should create and implement comprehensive policies to ensure compliance with federal requirements.

Finding Text

2022-001 Document Policies and Procedures Over Federal Awards Federal Program Information: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Determination of allowable costs • Employee travel • Cash management • Procurement • Conflicts of interest • Subrecipient monitoring and management Condition and Context The City does not have written policies and procedures related to federal awards, as required under the Uniform Guidance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause The City has not developed written formal documentation of internal controls to encompass all required areas per the Uniform Guidance. Effect or Potential Effect The City did not comply with the requirements of the Uniform Guidance over documented policies and procedures. No questioned costs are reported as this requirement is procedural in nature. Recommendation The City should develop and implement policies and procedures related to federal awards in order to comply with the Uniform Guidance. Views of Responsible Official and Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

Corrective Action Plan

Re: Corrective Action Plan - Audit Finding 2022-01 -Documentation of Policies and Procedures over Federal Awards Planned Corrective Action: The District will develop and formally adopt comprehensive written policies and procedures compliant with 2 CFR Part 200, including allowability of costs, procurement, conflicts of interest, cash management, travel, time and effort, inventory management, and record retention. All procedures will be consolidated into a Federal Grants Procedures Manual, approved by leadership, and reviewed annually. Relevant staff will receive training. Planned Implementation Date of Corrective Action: Already following corrective action Person Responsible for Corrective Action: Lisa Gibbons; Director of Finance & Operations ___Lisa Gibbons__________________________ Signature

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1166151 2022-001
    Material Weakness Repeat
  • 1166152 2022-001
    Material Weakness Repeat
  • 1166153 2022-001
    Material Weakness Repeat
  • 1166154 2022-001
    Material Weakness Repeat
  • 1166155 2022-003
    Material Weakness Repeat
  • 1166156 2022-003
    Material Weakness Repeat
  • 1166157 2022-003
    Material Weakness Repeat
  • 1166158 2022-003
    Material Weakness Repeat
  • 1166159 2022-004
    Material Weakness Repeat
  • 1166160 2022-004
    Material Weakness Repeat
  • 1166161 2022-004
    Material Weakness Repeat
  • 1166162 2022-004
    Material Weakness Repeat
  • 1166163 2022-001
    Material Weakness Repeat
  • 1166165 2022-002
    Material Weakness Repeat
  • 1166166 2022-002
    Material Weakness Repeat
  • 1166167 2022-003
    Material Weakness Repeat
  • 1166168 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.019 CORONAVIRUS RELIEF FUND $709,989
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $321,512
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $199,990
10.553 SCHOOL BREAKFAST PROGRAM $173,227
84.425 EDUCATION STABILIZATION FUND $144,576
10.555 NATIONAL SCHOOL LUNCH PROGRAM $66,781
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $45,147
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $38,168
84.027 SPECIAL EDUCATION GRANTS TO STATES $36,850
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $13,216
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $7,261
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $4,500
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $3,250