{"database": "mytown-research", "table": "audit_findings", "rows": [[10, "wa-sao", "1020019", "2016-004", 4, "WA", "City of Seattle", "City/Town", "0433", "5363000", "geoid_place", "Washington State Auditor's Office", "Financial and Federal audit \u2014 City of Seattle", "Financial and Federal", 2016, "2016-01-01", "2016-12-31", "2019-08-19", "federal_award_compliance", "material_weakness", 101972.0, "Questioned Cost Amount:  $101,972", "The City did not have adequate internal controls in place to ensure compliance with federal requirements over allowable costs and subrecipient monitoring. CFDA Number and Title: 14.241 Housing Opportunities for Persons with AIDS Federal Grantor Name: Department of Housing and Urban Development, Office of Community Planning and Development Federal Award/Contract Number: WAH13-F001,WAH14-F001, WAH15", "Cause of Condition \nThe grants and contracts specialists responsible for approving subrecipient requests for \npayments and performing onsite visits did not have the necessary tr aining and \nresources to perform adequate reviews. \nThe Department was not aware that risk evaluations are required for all subrecipients \nreceiving money from federal awards. During our 2016 audit, the Department was \nmade aware of this requirement and developed and implemented a new subrecipient \nmonitoring policy manual and trained grants and contracts specialists in 2017. \nEffec t of Conditi on and Questio ned Cost s \nWithout adequate internal controls in place, the Department cannot ensure the \nsubrecipients used the program funds in accordance with t he grant agreement and \nfederal requirements. \nThe Department paid $101,972 to one subrecipient without performing an onsite fiscal \nvisit or requiring adequate supporting documentation for incurred costs. Because of \ninsufficient review of subrecipient expenditures, the City used federal funds to \nreimburse its subrecipient for costs that were not supported as required. As a result, \nwe are questioning the total amount paid to this subrecipient. \nWashington State Auditor's Office \nRec omm endations \nWe recommend the Department establish internal controls to ensure compliance with \nthe subrecipient monitoring requirements. Specifically, the Department should: \n\uf0b7 Provide training and resources to grants and contracts specialists to \nensure they have an adequate understanding of federal requirements over \nallowable costs and subrecipient monitoring \n\uf0b7 Evaluate each subrecipient\u2019s risk of noncompliance to determine the \nappropriate level of monitoring activities \n\uf0b7 Perform adequate financial review required by City policies through: \n\uf0b7 Requiring subrecipients to provide adequate documentation to support \nthe incurred costs; and/or \n\uf0b7 Performing onsite visits that include a review of source \ndocumentation. \nCity\u2019s Respo nse \nThe City agrees with the Auditor\u2019s finding and had taken corrective actions to ensure \ncompliance with federal requirements over allowable costs and subrecipient \nmonitoring going forward. \nAudit or\u2019s Rem arks \nWe appreciate the City\u2019s commitment to resolve this finding and thank the City for its \ncooperation and assistance during the audit. We will review the corrective action taken \nduring our next regular audit. \nAppli cable Laws and Regulat ions \nThe American Institute of Certified Public A ccountants defines significant \ndeficiencies and material weaknesses in its Codification of Statements on Auditing \nStandards, section 935, Compliance Audits, paragraph 11. \nTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative \nRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform \nGuidance), Section 303, Internal controls, establishes requirements for in ternal \ncontrols for non-federal entities. \nTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative \nRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform \nGuidance), Section 331, Requirements for pass-through entities, establishes \nsubrecipient monitoring and management requirements for pass- through entities. \n \nWashington State Auditor's Office \nTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative \nRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform \nGuidance), Section 516, Audit findings, establishes reporting requirements for audit \nfindings. \n \n \n \n \n \n \nWashington State Auditor's Office", "https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1020019&isFinding=false&sp=false", "2026-07-30 13:24:54"]], "columns": ["rowid", "source", "report_number", "finding_number", "muni_id", "state", "entity_name", "entity_type", "entity_ext_id", "place_geoid", "match_method", "auditor", "report_title", "audit_type", "fiscal_year", "period_start", "period_end", "published_date", "finding_category", "severity", "questioned_cost", "cost_basis", "finding_title", "finding_text", "report_url", "fetched_at"], "primary_keys": ["rowid"], "primary_key_values": ["10"], "units": {}, "query_ms": 0.7252059876918793, "source": "MyTown", "source_url": "https://mytown.theboringparts.com", "license": "CC BY 4.0", "license_url": "https://creativecommons.org/licenses/by/4.0/"}