Finding 389726 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300631
Organization: City of Waltham, Massachusetts (MA)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance, leading to inaccurate financial reporting.
  • Impacted Requirements: Compliance with 2 CFR Part 200 is not being met due to lack of procedures for verifying cash on hand reports.
  • Recommended Follow-up: Update procedures to ensure accurate financial reporting in the IDIS system.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: CDBG - Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Award Identification Number and Year: Program Year 2022 (FY23) Award Period: July 1, 2022 - June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of reporting. Condition: Internal controls were not in place to ensure the accuracy of the financial reporting requirements. Questioned costs: None. Context: 4 of the 8 instances tested, it was noted that the PR 29 Cash on Hand Quarterly Reports where beginning cash on hand did not agree to the prior quarter's ending cash on hand. Cause: Procedures were not in place to ensure the accuracy of the information reported in the PR 29 - Cash on Hand Quarterly Reports within the IDIS system. Effect: Inaccurate reporting within the IDIS system. Repeat Finding: No. Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reported the in the IDIS system. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Community Development Block Grant – Assistance Listing No. 14.218 Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reported the in the IDIS system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have had this issue with the IDIS System in the past and have worked with HUD to correct it. We have reached out to HUD and will work with them again to rectify this issue. Name(s) of the contact person(s) responsible for corrective action: Robert Waters Planned completion date for corrective action plan: ASAP

Categories

Reporting Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 389727 2023-001
    Significant Deficiency
  • 389728 2023-002
    Significant Deficiency
  • 389729 2023-002
    Significant Deficiency
  • 389730 2023-002
    Significant Deficiency
  • 389731 2023-002
    Significant Deficiency
  • 389732 2023-002
    Significant Deficiency
  • 389733 2023-002
    Significant Deficiency
  • 389734 2023-003
    Significant Deficiency
  • 389735 2023-003
    Significant Deficiency
  • 389736 2023-003
    Significant Deficiency
  • 389737 2023-003
    Significant Deficiency
  • 389738 2023-003
    Significant Deficiency
  • 389739 2023-003
    Significant Deficiency
  • 389740 2023-004
    Significant Deficiency
  • 966168 2023-001
    Significant Deficiency
  • 966169 2023-001
    Significant Deficiency
  • 966170 2023-002
    Significant Deficiency
  • 966171 2023-002
    Significant Deficiency
  • 966172 2023-002
    Significant Deficiency
  • 966173 2023-002
    Significant Deficiency
  • 966174 2023-002
    Significant Deficiency
  • 966175 2023-002
    Significant Deficiency
  • 966176 2023-003
    Significant Deficiency
  • 966177 2023-003
    Significant Deficiency
  • 966178 2023-003
    Significant Deficiency
  • 966179 2023-003
    Significant Deficiency
  • 966180 2023-003
    Significant Deficiency
  • 966181 2023-003
    Significant Deficiency
  • 966182 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $9.63M
84.425 Education Stabilization Fund $3.13M
16.922 Equitable Sharing Program $754,549
93.778 Medical Assistance Program $657,251
10.553 School Breakfast Program $621,369
84.010 Title I Grants to Local Educational Agencies $418,295
10.555 National School Lunch Program $344,298
97.044 Assistance to Firefighters Grant $295,806
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $189,168
14.218 Community Development Block Grants/entitlement Grants $180,813
84.371 Striving Readers $173,287
84.027 Special Education_grants to States $154,814
10.582 Fresh Fruit and Vegetable Program $109,315
14.248 Community Development Block Grants_section 108 Loan Guarantees $35,767
20.600 State and Community Highway Safety $31,090
97.042 Emergency Management Performance Grants $25,600
14.239 Home Investment Partnerships Program $19,230
84.048 Career and Technical Education -- Basic Grants to States $15,000
20.616 National Priority Safety Programs $12,095
84.365 English Language Acquisition State Grants $11,303
84.173 Special Education_preschool Grants $11,297
84.367 Improving Teacher Quality State Grants $9,628
84.424 Student Support and Academic Enrichment Program $5,070