{"database": "mytown-research", "table": "audit_findings", "rows": [[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 \u2014 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 \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.\nWashington State Auditor's Office \nEffec t of Conditi on and Questio ned Cost s \nWithout adequate internal controls in place, the Department cannot ensure that the \nsubrecipients used the program funds in accordance with the grant agreement and \nfederal requirements. Our audit found fis cal or pr ogram monitoring was not \nperformed during 2016 for 10 of 16 projects tested. \nThe Department performed onsite visits for three projects in early 2017 and \nreviewed supporting documentation to verify the costs and activities were allowable. \nAs a result, we are not questioning the costs related to these projects. \nThe Department paid $1,180,042 for seven projects without performing onsite visits \nor requiring adequate supporting do cumentation for incurred costs. Because of \ninsufficient review of subrecipient expenditures, the City us ed federal funds to \nreimburse six subrecipients for costs that were not supported as required. As a result, \nwe are questioning the total amount paid to these subrecipients. We projected the \nidentified error from our non-statistical sample of 16 projects to all 74 projects funded \nby the program, which resulted in an estimated $5,457,692 in likely questioned \ncosts. The known questioned costs of $1,180,042 are includ ed in the to tal likely \nquestioned costs of $5,457,692. \nRec omm endations \nWe recommend the Human Service Department establish internal controls to ensure \ncompliance with the subrecipient monitoring requirements. Specifically, the \nDepartment should: \n\uf0b7 Provide training and resources to grants and contracts specialists to \nensure they have an adequate understanding of federal allowable costs \nand subrecipient monitoring requirements \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 \nsupport the incurred costs; and/or \n\uf0b7 Performing onsite visits that include a review of source documentation.\nWashington State Auditor's Office \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 \nits cooperation and assistance during the audit. We will review the corrective action \ntaken during 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 \n(Uniform Guidance), Section 303, Internal controls, establishes requirements for \ninternal controls 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 \n(Uniform Guidance), Section 331, Requirements for p ass-through entities, \nestablishes subrecipient monitoring and management requirements for pass- through \nentities. \nTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative \nRequirements, Cost Principles, and Audit Requirements for Federal Awards \n(Uniform Guidance), Section 516, Audit findings, establishes reporting requirements \nfor audit findings. \nU.S. Office of M anagement and Budget (OMB) Circular A-133, Audits of States, \nLocal Governments, and Non-Profit Organizations, Subpart D \u2013 Federal Agencies \nand Pass-Through Entities, section .400(d) Pass-through entity responsibilities, \nestablishes subrecipient monitoring and management requirements for pass- through \nentities. \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": ["11"], "units": {}, "query_ms": 2.2532969887834042, "source": "MyTown", "source_url": "https://mytown.theboringparts.com", "license": "CC BY 4.0", "license_url": "https://creativecommons.org/licenses/by/4.0/"}