Finding 611609 (2022-006)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-09-12
Audit: 29946
Organization: City of Woonsocket (RI)

AI Summary

  • Core Issue: The City lacks a complete list of real properties tied to federal funding, leading to improper disposal of properties intended for low-income housing.
  • Impacted Requirements: Noncompliance with federal regulations regarding real property management and internal controls, risking program integrity and low-income housing objectives.
  • Recommended Follow-Up: Establish a tracking system for federal program activities, maintain accurate property records, and conduct a risk assessment to enhance internal controls.

Finding Text

Real Property (Significant Deficiency ? Real Property Disposition) Condition: During testing of compliance over real property, we noted the City does not have a complete listing of real property either purchased with federal funds or managed under a federal program to assist with the primary objectives of providing housing to low-income residents. We also noted the City erroneously disposed of real property with an address of 294 Rhode Island Avenue, Woonsocket, RI, owned by the U.S. Department of Housing and Urban Development, which was intended to provide housing to low-income residents of the City of Woonsocket. Criteria: ? 24 CFR 570.505 Use of Real Property (24 CFR 570.502(a)(5) ? 24 CFR 570.201(b) Basic Eligible Activities - Disposition ? Uniform Guidance 2 CFR 200.303 Internal Controls states: (a) 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 be in compliance 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). Cause: ? Insufficient and ineffective internal controls in place over real property dispositions. ? Real property records were not maintained in a way that the City can identify properties either owned or managed under the HUD Federal award programs. Effect: ? Improper recording and use of program income received from sale of real property. ? Improper reporting to HUD regarding changes in use of real property. ? Noncompliance with program requirements relating to primary objectives of providing lowincome housing. ? Failure to maintain real property records leading to inability to properly track properties owned or managed under Federal award programs. ? Possible displacement of low-income residents (ineligible activities). Isolated Instance or Systematic Problem: Systematic problem. Repeat of Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation: We recommend the City implement a system to ensure all Federal award program activities are tracked and program funds including program income, are used in accordance with all program requirements. We also recommend that the City maintain a list of properties either owned or maintained under federal award programs and supporting documentation for each property as required by Uniform Guidance and HUD regulations. We further recommend that a risk assessment be performed over Federal programs and implement additional controls to address identified risks. Oversight by another department may assist the City to mitigate risk associated with the recent turnover in the Planning and Development Department.

Categories

Equipment & Real Property Management Internal Control / Segregation of Duties Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility HUD Housing Programs Reporting Significant Deficiency Matching / Level of Effort / Earmarking Program Income

Other Findings in this Audit

  • 35164 2022-003
    Significant Deficiency
  • 35165 2022-004
    Significant Deficiency
  • 35166 2022-005
    Significant Deficiency
  • 35167 2022-006
    Significant Deficiency
  • 35168 2022-003
    Significant Deficiency
  • 35169 2022-004
    Significant Deficiency
  • 35170 2022-005
    Significant Deficiency
  • 35171 2022-006
    Significant Deficiency
  • 35172 2022-002
    Material Weakness
  • 35173 2022-007
    Material Weakness
  • 35174 2022-008
    Significant Deficiency
  • 611606 2022-003
    Significant Deficiency
  • 611607 2022-004
    Significant Deficiency
  • 611608 2022-005
    Significant Deficiency
  • 611610 2022-003
    Significant Deficiency
  • 611611 2022-004
    Significant Deficiency
  • 611612 2022-005
    Significant Deficiency
  • 611613 2022-006
    Significant Deficiency
  • 611614 2022-002
    Material Weakness
  • 611615 2022-007
    Material Weakness
  • 611616 2022-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $10.13M
84.010 Title I Grants to Local Educational Agencies $4.56M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.91M
84.027 Special Education_grants to States $1.82M
10.555 National School Lunch Program $1.61M
14.239 Home Investment Partnerships Program $1.58M
10.559 Summer Food Service Program for Children $1.12M
10.553 School Breakfast Program $969,111
84.287 Twenty-First Century Community Learning Centers $910,968
84.367 Improving Teacher Quality State Grants $629,713
97.044 Assistance to Firefighters Grant $525,205
84.371 Striving Readers $426,163
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $367,804
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $367,030
14.218 Community Development Block Grants/entitlement Grants $265,504
14.905 Lead Hazard Reduction Demonstration Grant Program $260,737
84.048 Career and Technical Education -- Basic Grants to States $221,382
84.365 English Language Acquisition State Grants $137,405
84.196 Education for Homeless Children and Youth $63,526
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $62,211
84.173 Special Education_preschool Grants $46,069
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $43,762
16.738 Edward Byrne Memorial Justice Assistance Grant Program $35,683
14.231 Emergency Solutions Grant Program $30,627
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $22,049
93.434 Every Student Succeeds Act/preschool Development Grants $21,691
97.067 Homeland Security Grant Program $11,025
84.424 Student Support and Academic Enrichment Program $9,260