Finding Text
Finding Number: 2025-006 Federal Agency: U.S. Department of Housing and Urban Development Cluster/Program(s): Community Project Funding Assistance Listing Number(s): 14.251 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency – Internal Control over Compliance Compliance Finding Statement of Condition: A Build America, Buy America (BABA) waiver was not received prior to receiving project funding, despite the project involving materials subject to BABA domestic content requirements. Criteria: The Infrastructure Investment and Jobs Act (IIJA) and implementing federal guidance require that all covered infrastructure projects comply with BABA domestic sourcing requirements, unless a formal waiver is approved by the applicable federal awarding agency prior to obligation of funds. Cause: Grant funds were drawn prior to the final approval of the BABA waiver. Effect: Failure to obtain the BABA waiver could result in the loss of future federal funding. Known Questioned Costs: None Likely Questioned Costs: None Recommendations: We recommend that the School Unit implement procedures to ensure all requirements are met on future projects/grants prior to drawdowns being submitted.