Finding 540900 (2024-004)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 350527
Organization: City of Waltham, Massachusetts (MA)

AI Summary

  • Core Issue: The City of Waltham lacks adequate internal controls to ensure compliance with federal requirements for vendor suspension and debarment checks before contract agreements.
  • Impacted Requirements: Compliance with 2 CFR Part 200 is necessary to prevent potential noncompliance in procurement processes.
  • Recommended Follow-Up: Management should establish procedures to verify vendor status before contracting and ensure that any expenses transferred to federal grants comply with suspension and debarment standards.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 240-542976-2022-0308, 240-689599-2023-0308, 240-000558-2024-0308, 252-546624-2022-0308, 274-000662-2024-0308, 262-689600-2023-0308, 262-000559-2024-0308, and 264-547238-2022-0308 Award Period: July 1, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance 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 procurement, suspension, and debarment. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Condition: Internal controls were not in place to ensure suspension and debarment checks were being performed prior to entering into a contract. Questioned costs: None Context: For 1 instance of the 3 contracts tested, a suspension and debarment check was not performed, for 1 instance out if the 3 contracts tested, a suspension and debarment check has not been performed during the current grant year, and for 1 instance, a suspension and debarment check was performed after expenses had already occurred. Cause: Procedures are not in place to ensure all vendors are checked to ensure they are not suspended or debarred prior to entering into a contract with a vendor. In addition, for transactions which are originally not expected to be funded with federal funds and later transferred did not meet federal suspension and debarment standards. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2023-003. Recommendation: We recommend that management implement procedures to ensure that vendors are checked to ensure that they are not suspended or debarred prior to entering into a contract with a vendor and that expenses transferred to a federal grant have met the federal suspension and debarment standards. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 540878 2024-002
    Significant Deficiency Repeat
  • 540879 2024-002
    Significant Deficiency Repeat
  • 540880 2024-002
    Significant Deficiency Repeat
  • 540881 2024-002
    Significant Deficiency Repeat
  • 540882 2024-002
    Significant Deficiency Repeat
  • 540883 2024-002
    Significant Deficiency Repeat
  • 540884 2024-002
    Significant Deficiency Repeat
  • 540885 2024-002
    Significant Deficiency Repeat
  • 540886 2024-003
    Material Weakness
  • 540887 2024-003
    Material Weakness
  • 540888 2024-003
    Material Weakness
  • 540889 2024-003
    Material Weakness
  • 540890 2024-003
    Material Weakness
  • 540891 2024-003
    Material Weakness
  • 540892 2024-003
    Material Weakness
  • 540893 2024-003
    Material Weakness
  • 540894 2024-004
    Significant Deficiency Repeat
  • 540895 2024-004
    Significant Deficiency Repeat
  • 540896 2024-004
    Significant Deficiency Repeat
  • 540897 2024-004
    Significant Deficiency Repeat
  • 540898 2024-004
    Significant Deficiency Repeat
  • 540899 2024-004
    Significant Deficiency Repeat
  • 540901 2024-004
    Significant Deficiency Repeat
  • 1117320 2024-002
    Significant Deficiency Repeat
  • 1117321 2024-002
    Significant Deficiency Repeat
  • 1117322 2024-002
    Significant Deficiency Repeat
  • 1117323 2024-002
    Significant Deficiency Repeat
  • 1117324 2024-002
    Significant Deficiency Repeat
  • 1117325 2024-002
    Significant Deficiency Repeat
  • 1117326 2024-002
    Significant Deficiency Repeat
  • 1117327 2024-002
    Significant Deficiency Repeat
  • 1117328 2024-003
    Material Weakness
  • 1117329 2024-003
    Material Weakness
  • 1117330 2024-003
    Material Weakness
  • 1117331 2024-003
    Material Weakness
  • 1117332 2024-003
    Material Weakness
  • 1117333 2024-003
    Material Weakness
  • 1117334 2024-003
    Material Weakness
  • 1117335 2024-003
    Material Weakness
  • 1117336 2024-004
    Significant Deficiency Repeat
  • 1117337 2024-004
    Significant Deficiency Repeat
  • 1117338 2024-004
    Significant Deficiency Repeat
  • 1117339 2024-004
    Significant Deficiency Repeat
  • 1117340 2024-004
    Significant Deficiency Repeat
  • 1117341 2024-004
    Significant Deficiency Repeat
  • 1117342 2024-004
    Significant Deficiency Repeat
  • 1117343 2024-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $9.72M
16.922 Equitable Sharing Program $1.39M
10.553 School Breakfast Program $706,324
84.010 Title I Grants to Local Educational Agencies $664,265
93.778 Medical Assistance Program $580,540
10.555 National School Lunch Program $344,298
10.582 Fresh Fruit and Vegetable Program $119,342
97.044 Assistance to Firefighters Grant $102,066
14.248 Community Development Block Grants Section 108 Loan Guarantees $52,134
20.600 State and Community Highway Safety $44,175
84.424 Student Support and Academic Enrichment Program $34,029
97.042 Emergency Management Performance Grants $25,600
84.371 Comprehensive Literacy Development $24,000
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $16,151
14.239 Home Investment Partnerships Program $14,925
84.048 Career and Technical Education -- Basic Grants to States $12,480
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $12,382
84.027 Special Education Grants to States $9,403
84.425 Education Stabilization Fund $7,939
14.218 Community Development Block Grants/entitlement Grants $6,600
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $4,997
84.173 Special Education Preschool Grants $4,665
20.616 National Priority Safety Programs $3,659
66.468 Drinking Water State Revolving Fund $2,335
84.365 English Language Acquisition State Grants $99