Finding 611615 (2022-007)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-09-12
Audit: 29946
Organization: City of Woonsocket (RI)

AI Summary

  • Core Issue: The City issued loans without completing necessary eligibility checks and documentation for the SAFE AT HOME Program.
  • Impacted Requirements: Noncompliance with eligibility criteria outlined in the Homeowner Rehabilitation Program Manual and federal regulations.
  • Recommended Follow-Up: Implement a quality control process to ensure compliance with eligibility requirements and reduce future risks.

Finding Text

Eligibility Determinations for the HOME Program (Material Weakness ? Eligibility) Condition: During testing of compliance with Eligibility requirements, we noted the City issued loans to applicants through the SAFE AT HOME Repair Cost Assistance Program, without completing the eligibility determination process including obtaining the required documentation to support the City?s eligibility determination and performing sufficient reviews and approvals for each project. Criteria: Per the Homeowner Rehabilitation Program Application and Compliance Manual ?Written Agreement? section, the following was noted: ?Before the City provides HOME funds to support homeowner rehabilitation projects, the homeowner(s) must sign a written agreement that meets the requirements of 24 CFR 92.504(c). For homeowners accessing HOME funds for rehabilitation projects, this written agreement will include the following: ? The estimated value of the property, after rehabilitation, will not exceed 95 percent of the median purchase price for the area ? The housing unit will be used as the principal residence of the owner whose family qualifies as a low-income family at the time HOME funds are committed to the project ? The amount and form of HOME assistance ? The rehabilitation work that will be undertaken ? The date for completion ? And the property standards to be met ? The City?s Recapture Policy? The Manual also lists several specific requirements in order for households and individuals to be considered an eligible beneficiary, including income eligibility (25 CFR 5.609). Completed income certifications require review and approval by the City?s HOME Program Compliance Officer. Cause: Required eligibility determinations were not completed (including obtaining required documentation, verifications, reviews and approvals) before providing funding to homeowners. Effect: ? Noncompliance with eligibility compliance requirements per Uniform Guidance and HUD. ? Providing funding to households or individuals that do not meet the eligibility requirements. ? Potential loss or deduction of federal funding in the future due to noncompliance. Isolated Instance or Systematic Problem: We consider this to be a ?systemic? problem. Repeat of Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation: We recommend that the City implement a quality control process to ensure that controls are in place and effective and that they help to lower the risk of noncompliance with eligibility requirements per Uniform Guidance and HUD requirements.

Categories

Procurement, Suspension & Debarment Eligibility HUD Housing Programs Material Weakness Matching / Level of Effort / Earmarking

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
  • 611611 2022-004
    Significant Deficiency
  • 611612 2022-005
    Significant Deficiency
  • 611613 2022-006
    Significant Deficiency
  • 611614 2022-002
    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