Finding 1205211 (2025-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-31
Audit: 396874
Organization: Town of West Warwick (RI)

AI Summary

  • Core Issue: The Town's purchasing policies are missing key elements required by federal procurement standards.
  • Impacted Requirements: Compliance with 2 CFR sections 200.303 and 200.318 through 200.326 is necessary for federal grant management.
  • Recommended Follow-up: Update the procurement policy to align with all required elements to mitigate compliance risks.

Finding Text

Federal Agency: U.S. Department of the Treasury; U.S. Department of Homeland Security Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds; Assistance to Firefighters Grant Assistance Listing Number: 21.027; 97.044 Federal Award Identification Number and Year: SLFRP0136-2021, EMW-2021-FG-00409 Pass-through Agency: State of Rhode Island's Pandemic Recovery Office (CSLFRF) Award Period: 3/3/21- 12/31/26, 2/28/23 - 2/27/25 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Repeat Finding: No Criteria or specific requirement The Town must comply with procurement standards set out at 2 CFR sections 200.303 and 200.318 through 200.326 within Uniform Guidance. Condition The Town's purchasing policies do not include all elements as outlined in 2 CFR sections 200.303 and 200.318 through 200.326 noted above. Questioned Costs None Context Although the Town's purchasing policies do not include all elements as outlined in 2CFR sections 200.303 and 200.318 through 200.326, we did not identify transactions where contracts were awarded without proper justification in 7 of 7 procurement transactions tested. Cause The Town's has not updated its purchasing policy to fully incorporate all procurement requirements under Uniform Guidance. Effect The Town is at risk for noncompliance with Federal grants as it relates to procurement. Recommendation We recommend that the Town updates its procurement policy to include all elements identified in 2 CFR sections 200.303 and 200.318 through 200.326. Views of Responsible Officials Management agrees with this finding.

Corrective Action Plan

Significant Deficiency in Internal Control over Compliance, Other Matters Description of Finding The Town of West Warwick’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Statement of Concurrence or Nonconcurrence Management concurs with the finding. Corrective Action The error will be corrected as of the beginning for fiscal year ending June 30, 2027. We will add the paragraph to our existing purchasing policy. This must be done by resolution and given the timeline that takes, we anticipate having this implemented the end of June 2026. Name of Contact Person Kristen Benoit, Finance Director Projected Completion Date 7/1/2026

Categories

Procurement, Suspension & Debarment Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205210 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.32M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $1.49M
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $1.41M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $1.28M
84.425 EDUCATION STABILIZATION FUND $1.25M
84.027 SPECIAL EDUCATION GRANTS TO STATES $1.16M
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $901,041
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $317,230
10.553 SCHOOL BREAKFAST PROGRAM $306,078
97.029 FLOOD MITIGATION ASSISTANCE $272,270
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $151,178
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $136,430
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $96,678
16.922 EQUITABLE SHARING PROGRAM $63,213
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $48,181
84.169 INDEPENDENT LIVING_STATE GRANTS $43,624
10.558 CHILD AND ADULT CARE FOOD PROGRAM $39,812
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $36,707
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $20,330
84.411 EDUCATION INNOVATION AND RESEARCH (FORMERLY INVESTING IN INNOVATION (I3) FUND) $17,397
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $15,449
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $11,305
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $9,102
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $812
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $793
93.305 PPHF 2018: OFFICE OF SMOKING AND HEALTH-NATIONAL STATE-BASED TOBACCO CONTROL PROGRAMS-FINANCED IN PART BY 2018 PREVENTION AND PUBLIC HEALTH FUNDS (PPHF) $552