{"database": "mytown-research", "table": "audit_findings", "rows": [[2, "wa-sao", "1017656", "2015-002", 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", 2015, "2015-01-01", "2015-12-31", "2019-08-19", "federal_award_compliance", "material_weakness", 1566880.0, "Questioned Cost Amount: $1,566,880", "The City did not have adequate internal controls in place to ensure compliance with federal subre cipient monitoring requirements. 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: N/A Pass-through Award/Contract Number: N/A Questioned Cost Amo", "Background \nThe City of Seattle\u2019s Human Service Department administers the Continuum of \nCare Program. This program is designed to promote communitywide commitment \nto the goal of ending homelessness by providing housing and supportive services \nto homeless individuals a nd families. The Department spent $11.4 million in \nContinuum of Care funds, of which $10.6 million was passed on to subrecipients \nwho perform the primary activities of this program. \nDescription of Condition \nFederal regulations require the City to monitor subrecipients\u2019 activities to ensure \nthat subwards are used for authorized purposes which can be accomplished by \nsubrecipients submitting invoices containing supporting source documentation or \nreviewing supporting source documentation during on-site visits. That monitoring, \nparticularly the on -site visits, is important to ensure that subrecipients\u2019 \nadministration of programs are appropriate and in compliance with federal \nrequirements, including those related to allowable costs and activities. \nDuring the current audit, we found: \n\uf0b7 The Department utilized a monitoring log to track on -site visits for \nsubrecipients by project. However, the log excluded 36 of the 82 projects \n \nWashington State Auditor\u2019s Office Page 18 \nduring 2015. Without a complete and current log, the Department cannot \nensure site visits are performed and tracked for all subrecipients\u2019 projects. \n\uf0b7 The Department\u2019s policy is to perform semi -annual site visits; however, it \ndid not perform on -site visits that included a fiscal review of invoices or \nother documentation required to support the costs incurred for eight of the \n16 projects reviewed. For the fiscal reviews that were conducted, \ndocumentation was not always sufficiently complete to establish that site \nvisits were adequately performed. \nWe consider these control deficiencies to be material weaknesses. \nCause of Condition \nThe Grants and Contracts Specialists who perform on -site visits did not have the \nnecessary training and resources to perform adequate financial review. \nEffect of Condition and Questioned Costs \nBy reimbursing subrecipie nts for costs claimed without receiving adequate \ndocumentation or otherwise monitoring the subreceipients\u2019 use of funding, the City \nis unable to ensure costs charge to the grant are allowable. As a result, we are \nquestioning $1,566,880 of costs paid to eight subrecipient projects. \nRecommendation \nWe recommend the Department establish internal controls to ensure compliance \nwith the subreceipient monitoring requirements including: \n\uf0b7 Providing training to program specialists to ensure they have an adequate \nunderstanding of federal subrecipient monitoring requirements and \nDepartment policies. \n\uf0b7 Requiring subrecipients to provide adequate documentation to support the \ncosts incurred or perform on -site visits that includes a review of source \ndocumentation. \n\uf0b7 Retaining sufficient documentation to demonstrate compliance with federal \nsubreceipient monitoring requirements. \nCity\u2019s Response \nThe City understands the Auditor\u2019s concerns regarding inadequate internal \ncontrols in place and is taking immediate and long -term corrective actions to \nensure compliance with federal subrecipient monitoring requirements going \nforward. \n \nWashington State Auditor\u2019s Office Page 19 \nAuditor\u2019s Remarks \nWe thank the City for its assistance during the audit and will follow up on corrective \nactions taken during the next audit. \nApplicabl e Laws and Regulations \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) establishes reporting requirements for audit findings. \n 2 CFR 200.516 Audit Reporting, states in part: \n(a) Audit findings reported. The auditor must report the \nfollowing as audit findings in a", "https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1017656&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": ["2"], "units": {}, "query_ms": 126.67076097568497, "source": "MyTown", "source_url": "https://mytown.theboringparts.com", "license": "CC BY 4.0", "license_url": "https://creativecommons.org/licenses/by/4.0/"}