FAC Explorer

Finding 611611 (2022-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-12
Audit: 29946
Organization: City of Woonsocket (RI)
Auditor: Hague Sahady & CO CPAS PC

AI Summary

  • Core Issue: The City failed to obtain necessary certifications and HUD approvals before spending funds, leading to potential compliance violations.
  • Impacted Requirements: CDBG funds cannot be spent without HUD's approval of a Request for Release of Funds and environmental certification.
  • Recommended Follow-Up: Implement stronger controls to ensure all expenditures receive the required certifications and approvals before funds are obligated.

Finding Text

Special Tests ? Required Certifications and HUD Approvals (Significant Deficiency ? Special Tests) Condition: During performing procedures and testing over compliance with Special Tests ? Required Certifications and HUD Approvals, we noted the City did not obtain the required certifications or approvals before obligating or expending funds. Criteria: The Uniform Guidance states that ?CDBG funds (and local funds to be reimbursed with CDBG funds) cannot be obligated or expended before receipt of HUD?s approval of a Request for Release of Funds (RROF) and environmental certification?. Cause: The design and operation of controls appear to be ineffective regarding ensuring proper certification and approval for CDBG expenditures. Effect: Potential unallowable costs being charged to the grant and noncompliance with HUD regulations. Isolated Instance or Systematic Problem: Systematic problem. Repeat of Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): Yes ? 2021-003 Recommendation: We recommend the City ensure that expenditures are approved only after obtaining proper certifications and approvals.

Categories

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency

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
  • 611609 2022-006
    Significant Deficiency
  • 611610 2022-003
    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