FAC Explorer

Finding 1227128 (2025-013)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2025
Accepted
2026-08-18
Audit: 409307
Organization: City of Manchester, Nh (NH)
Auditor: CLA

AI Summary

  • Core Issue: The City failed to document the review of subrecipient single audit reports, leading to a material weakness in internal controls over compliance.
  • Impacted Requirements: Non-compliance with subrecipient monitoring requirements under 2 CFR Part 200, specifically regarding the verification and documentation of audit results.
  • Recommended Follow-Up: Strengthen internal controls by formalizing processes to track, review, and document subrecipient audits and ensure timely follow-up on any findings.

Finding Text

Reference Number: Prior Year Finding: 2025-013 N/A Federal Agency: U.S. Department of Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: ARP17SL1(5/23/2021 - 12/31/2026) Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: Pass-through entities should verify that subrecipients expected to be audited as required by 2CFR Part 200, Subpart F, met this requirement (2CFR section 200.322(f). The pass-through entity should also ensure that the subrecipient takes timely and appropriate correction action on deficiencies detected through audits. These reviews should be documented. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The City did not retain evidence that subrecipient single audit reports were reviewed as required. Context: Two of five subrecipients selected for testing were required to submit Single Audit Reports to the Federal Audit Clearinghouse. The City could not provide evidence that these reports were obtained and reviewed as part of the subrecipient monitoring process. Cause: The City’s policies and procedures were not sufficient to ensure that subrecipient single audit report reviews were documented and retained. The City did not have a formalized process to track which subrecipients were subject to single audit requirements, document the review of submitted reports, and maintain evidence that any required follow-up on subrecipient single audit finding or matters impacting the federal awards were made. CITY OF MANCHESTER, NEW HAMPSHIRE SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2025 (31) Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Effect: The City was not in compliance with Subrecipient Monitoring related requirements and did not have sufficient documentation to demonstrate that it evaluated relevant subrecipient audit results when assessing subrecipient risk and determining the appropriate level of monitoring. Without evidence of the reviews, there is an increased risk that subrecipient audit findings, questioned costs, or other matters affecting the Federal program may not be identified, evaluated, or addressed timely. Questioned costs: None. Recommendation: We recommend that the City strengthen internal controls and procedures to ensure that all subrecipient monitoring checks are performed and documented. Such procedures should include identifying subrecipients subject to Single Audit requirements, obtaining and reviewing applicable Single Audit Reports, documenting the results of the review, retaining evidence of the review, and tracking any required follow-up or corrective action related to findings impacting the Federal award. Views of Responsible Officials: There is no disagreement with the finding

Corrective Action Plan

2025-013 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027 Recommendation: We recommend that the City strengthen internal controls and procedures to ensure that all subrecipient monitoring checks are performed and documented. Such procedures should include identifying subrecipients subject to Single Audit requirements, obtaining and reviewing applicable Single Audit Reports, documenting the results of the review, retaining evidence of the review, and tracking any required follow-up or corrective action related to findings impacting the Federal award. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding:  CIP will create a Standard Operating Procedure for ensuring ARPA subrecipients are appropriately monitored, who is responsible for monitoring, and how documentation will be retained on file. Name(s) of the contact person(s) responsible for corrective action:  Chelcie Pinsonneault, Community Grants Manager Planned completion date for corrective action plan:  Planning and Community Development will ensure the implementation of this corrective action plan is completed by October 31, 2026.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 1227106 2025-007
    Material Weakness Repeat
  • 1227107 2025-008
    Material Weakness Repeat
  • 1227108 2025-009
    Material Weakness Repeat
  • 1227109 2025-009
    Material Weakness Repeat
  • 1227110 2025-009
    Material Weakness Repeat
  • 1227111 2025-009
    Material Weakness Repeat
  • 1227112 2025-009
    Material Weakness Repeat
  • 1227113 2025-009
    Material Weakness Repeat
  • 1227114 2025-009
    Material Weakness Repeat
  • 1227115 2025-009
    Material Weakness Repeat
  • 1227116 2025-009
    Material Weakness Repeat
  • 1227117 2025-009
    Material Weakness Repeat
  • 1227118 2025-009
    Material Weakness Repeat
  • 1227119 2025-009
    Material Weakness Repeat
  • 1227120 2025-009
    Material Weakness Repeat
  • 1227121 2025-010
    Material Weakness Repeat
  • 1227122 2025-011
    Material Weakness Repeat
  • 1227123 2025-012
    Material Weakness Repeat
  • 1227124 2025-013
    Material Weakness Repeat
  • 1227125 2025-010
    Material Weakness Repeat
  • 1227126 2025-011
    Material Weakness Repeat
  • 1227127 2025-012
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $2.63M
93.224 HEALTH CENTER PROGRAM $1.82M
14.905 LEAD HAZARD REDUCTION DEMONSTRATION GRANT PROGRAM $1.80M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1.32M
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $1.01M
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $516,063
14.913 HEALTHY HOMES PRODUCTION PROGRAM $416,078
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $370,515
97.083 STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) $349,709
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $277,315
66.458 CLEAN WATER STATE REVOLVING FUND $227,334
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $218,088
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $191,940
16.922 EQUITABLE SHARING PROGRAM $184,027
20.930 PAYMENTS FOR SMALL COMMUNITY AIR SERVICE DEVELOPMENT $182,366
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $169,830
16.839 STOP SCHOOL VIOLENCE $165,350
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $161,963
93.940 HIV PREVENTION AND SURVEILLANCE ACTIVITIES-HEALTH DEPARTMENT BASED $114,560
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $103,506
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $91,212
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $84,815
93.366 STATE ACTIONS TO IMPROVE ORAL HEALTH OUTCOMES AND PARTNER ACTIONS TO IMPROVE ORAL HEALTH OUTCOMES $77,612
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION€™S HEALTH $63,320
20.941 STRENGTHENING MOBILITY AND REVOLUTIONIZING TRANSPORTATION (SMART) GRANTS PROGRAM $58,228
16.751 EDWARD BYRNE MEMORIAL COMPETITIVE GRANT PROGRAM $55,444
93.889 NATIONAL BIOTERRORISM HOSPITAL PREPAREDNESS PROGRAM $52,116
93.197 CHILDHOOD LEAD POISONING PREVENTION PROJECTS, STATE AND LOCAL CHILDHOOD LEAD POISONING PREVENTION AND SURVEILLANCE OF BLOOD LEAD LEVELS IN CHILDREN $41,029
21.016 EQUITABLE SHARING $37,486
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $30,027
16.609 PROJECT SAFE NEIGHBORHOODS $27,958
16.753 CONGRESSIONALLY RECOMMENDED AWARDS $26,640
66.468 DRINKING WATER STATE REVOLVING FUND $25,000
93.526 GRANTS FOR CAPITAL DEVELOPMENT IN HEALTH CENTERS $17,065
93.005 Project Grants for Health Status of Minority Populations $16,933
20.205 HIGHWAY PLANNING AND CONSTRUCTION $12,238
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $8,701
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $5,115
16.034 CORONAVIRUS EMERGENCY SUPPLEMENTAL FUNDING PROGRAM $1,563
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $500