FAC Explorer

Finding 1223041 (2023-001)

Material Weakness Repeat Finding
Requirement
ABCEFGHIJLMNP
Questioned Costs
-
Year
2023
Accepted
2026-07-07
Audit: 406626
Organization: City of Watertown (MA)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The City lacks required 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 meet Uniform Guidance requirements and address this repeat finding.

Finding Text

2023-001 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. Questioned Costs No questioned costs are reported as this requirement is procedural in nature. Identification as a Repeat Finding This is a repeat of finding 2022-001. 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

Finding 2023-001 – Document Policies and Procedures Over Federal Awards Condition: The City has not fully documented all policies and procedures required under Uniform Guidance, including allowable costs, employee travel, cash management, procurement, conflicts of interest, and subrecipient monitoring. Corrective Action: The City will continue its effort to formalize and document all federal grant policies and procedures required under Uniform Guidance. Existing procurement policies will be updated to incorporate federal requirements related to conflicts of interest, suspension and debarment verification, and other applicable federal procurement standards. Planned Implementation Date: June 30, 2027 Responsible Official: City Manager, Director of Finance, and School Business Office

Categories

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

Other Findings in this Audit

  • 1223033 2023-001
    Material Weakness Repeat
  • 1223034 2023-001
    Material Weakness Repeat
  • 1223035 2023-001
    Material Weakness Repeat
  • 1223036 2023-001
    Material Weakness Repeat
  • 1223037 2023-001
    Material Weakness Repeat
  • 1223038 2023-001
    Material Weakness Repeat
  • 1223039 2023-001
    Material Weakness Repeat
  • 1223040 2023-001
    Material Weakness Repeat
  • 1223042 2023-002
    Material Weakness Repeat
  • 1223043 2023-002
    Material Weakness Repeat
  • 1223044 2023-002
    Material Weakness Repeat
  • 1223045 2023-003
    Material Weakness Repeat
  • 1223046 2023-003
    Material Weakness Repeat
  • 1223047 2023-003
    Material Weakness Repeat
  • 1223048 2023-003
    Material Weakness Repeat
  • 1223049 2023-003
    Material Weakness Repeat
  • 1223050 2023-003
    Material Weakness Repeat
  • 1223051 2023-003
    Material Weakness Repeat
  • 1223052 2023-003
    Material Weakness Repeat
  • 1223053 2023-003
    Material Weakness Repeat
  • 1223054 2023-004
    Material Weakness Repeat
  • 1223055 2023-004
    Material Weakness Repeat
  • 1223056 2023-004
    Material Weakness Repeat
  • 1223057 2023-004
    Material Weakness Repeat
  • 1223058 2023-004
    Material Weakness Repeat
  • 1223059 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $394,904
10.553 SCHOOL BREAKFAST PROGRAM $195,060
84.027 SPECIAL EDUCATION GRANTS TO STATES $109,773
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $81,008
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $72,177
10.555 NATIONAL SCHOOL LUNCH PROGRAM $65,406
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $40,829
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $36,258
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $24,706
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $19,000
10.675 URBAN AND COMMUNITY FORESTRY PROGRAM $18,232
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $13,399
45.310 GRANTS TO STATES $7,404
84.425 EDUCATION STABILIZATION FUND $5,859
20.703 INTERAGENCY HAZARDOUS MATERIALS PUBLIC SECTOR TRAINING AND PLANNING GRANTS $3,000
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $835