audit_findings: 11

This data as json

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
11	wa-sao	1020019	2016-005	4	WA	City of Seattle	City/Town	0433	5363000	geoid_place	Washington State Auditor's Office	Financial and Federal audit — City of Seattle	Financial and Federal	2016	2016-01-01	2016-12-31	2019-08-19	federal_award_compliance	material_weakness	1180042.0	Questioned Cost Amount: $1,180,042	The City did not have adequate internal controls in place to ensure compliance with federal requirements over allowable cost and subrecipient monitoring. CFDA Number and Title: 14.267 Continuum of Care Program Federal Grantor Name: U.S. Department of Housing and Urban Development (HUD) Federal Award/Contract Number: Multiple awards Pass-through Entity Name: NA Pass-through Award/Contract NA Number	Cause of Condition The grants and contracts specialists responsible for approving subrecipient requests for payments and performing onsite visits did not have the necessary tr aining and resources to perform adequate reviews. The Department was not aware that risk evaluations are required for all subrecipients receiving money from federal awards. During our 2016 audit, the Department was made aware of this requirement and developed and implemented a new subrecipient monitoring policy manual and trained grants and contracts specialists in 2017. Washington State Auditor's Office Effec t of Conditi on and Questio ned Cost s Without adequate internal controls in place, the Department cannot ensure that the subrecipients used the program funds in accordance with the grant agreement and federal requirements. Our audit found fis cal or pr ogram monitoring was not performed during 2016 for 10 of 16 projects tested. The Department performed onsite visits for three projects in early 2017 and reviewed supporting documentation to verify the costs and activities were allowable. As a result, we are not questioning the costs related to these projects. The Department paid $1,180,042 for seven projects without performing onsite visits or requiring adequate supporting do cumentation for incurred costs. Because of insufficient review of subrecipient expenditures, the City us ed federal funds to reimburse six subrecipients for costs that were not supported as required. As a result, we are questioning the total amount paid to these subrecipients. We projected the identified error from our non-statistical sample of 16 projects to all 74 projects funded by the program, which resulted in an estimated $5,457,692 in likely questioned costs. The known questioned costs of $1,180,042 are includ ed in the to tal likely questioned costs of $5,457,692. Rec omm endations We recommend the Human Service Department establish internal controls to ensure compliance with the subrecipient monitoring requirements. Specifically, the Department should:  Provide training and resources to grants and contracts specialists to ensure they have an adequate understanding of federal allowable costs and subrecipient monitoring requirements  Evaluate each subrecipient’s risk of noncompliance to determine the appropriate level of monitoring activities  Perform adequate financial review required by City policies through:  Requiring subrecipients to provide adequate documentation to support the incurred costs; and/or  Performing onsite visits that include a review of source documentation. Washington State Auditor's Office City’s Respo nse The City agrees with the Auditor’s finding and had taken corrective actions to ensure compliance with federal requirements over allowable costs and subrecipient monitoring going forward. Audit or’s Rem arks We appreciate the City’s commitment to resolve this finding and thank the City for its cooperation and assistance during the audit. We will review the corrective action taken during our next regular audit. Appli cable Laws and Regulat ions The American Institute of Certified Public A ccountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 303, Internal controls, establishes requirements for internal controls for non-federal entities. Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 331, Requirements for p ass-through entities, establishes subrecipient monitoring and management requirements for pass- through entities. Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 516, Audit findings, establishes reporting requirements for audit findings. U.S. Office of M anagement and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, Subpart D – Federal Agencies and Pass-Through Entities, section .400(d) Pass-through entity responsibilities, establishes subrecipient monitoring and management requirements for pass- through entities. Washington State Auditor's Office	https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1020019&isFinding=false&sp=false	2026-07-30 13:24:54