EIN: 046001416
UEI: TN9KDHN8SHA3
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 30, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 30, 2026 (39 days from today).
What is a management decision? →Internal controls were not in place to ensure proper federal procurement standards were being followed for transactions that were transferred to the federal grant. Questioned costs: $26,648 Context: For 1 of 5 contracts tested, we identified that expenses were transferred to a federal grant and the underlying contracts were not in compliance with federal procurement requirements. Cause: Procedures are not in place to ensure proper federal procurement standards were being met prior to transferring expenses to a federal grant. Effect: Noncompliance with federal procurement compliance requirements. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2024-003. Recommendation: We recommend management implement procedures to ensure expenses transferred to a federal grant are meeting federal procurement standards. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 240-000558-2024-0308, 240-000558-2025-0308, 262-000559-2024-0308, 262-000559-2025-0308, 274-000662-2024-0308, and 274-000662-2025-0308 Award Period: July 1, 2024 - June 30, 2025 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Condition: Internal controls were not in place to ensure proper federal procurement standards were being followed for transactions that were transferred to the federal grant. Questioned costs: $26,648 Context: For 1 of 5 contracts tested, we identified that expenses were transferred to a federal grant and the underlying contracts were not in compliance with federal procurement requirements. Cause: Procedures are not in place to ensure proper federal procurement standards were being met prior to transferring expenses to a federal grant. Effect: Noncompliance with federal procurement compliance requirements. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2024-003. Recommendation: We recommend management implement procedures to ensure expenses transferred to a federal grant are meeting federal procurement standards. Views of responsible officials: There is no disagreement with the audit finding.
Special Education Cluster Assistance Listing No. 84.IDEA Recommendation: We recommend management implement procedures to ensure expenses transferred to a federal grant are meeting federal procurement standards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Fiscal Coordinator, Assistant Superintendent for Finance and Operations, Assistant Superintendent for Special Education and Pupil Services and Grants Manager have all been briefed on the procurement standards. The Grants Manager has developed a grants management manual to share with all educators and administrators who are implementing grants and will meet individually with the lead person on each grant to make sure all standards and procedures are clear. The Business Office will update the Grants Requisition Form to include a field to indicate whether procurement standards have been met. Both the Grants Manager and Assistant Superintendent of Finance and Operations are required to sign off on all Grant Requisition Forms. Name(s) of the contact person(s) responsible for corrective action: Chad Mazza, Assistant Superintendent of Finance and Operations, Lisa Kingsley, Assistant Superintendent for Special Education and Pupil Services Kathleen Dowcett, Grants Manager; Lisa Butler, Fiscal Coordinator Planned completion date for corrective action plan: The Grants Manager has already established the process of meeting regularly with the lead person on each grant to share policies and procedures and monitor spending and implementation.
2024-003
FAC accepted this audit on March 31, 2025 — management decision was due October 1, 2025.
Internal controls were not in place to ensure time and effort documentation was consistently tracked and supported. Questioned costs: $3,084 Context: For 4 of 40 payroll transactions tested, we identified the City did not maintain documentation of time and effort supporting the charges to the program. Cause: Procedures are not in place to maintain the required supporting documentation for the salaries charged to the grant. Effect: The salary charges are subject to disallowance and are considered questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2023-002. Recommendation: We recommend management implement procedures to ensure that salaries charged to the grant are appropriate and are supported by the required time and effort support and that a consistent policy is applied. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 240-542976-2022-0308, 240-689599-2023-0308, 240-000558-2024-0308, 252-546624-2022-0308, 274-000662-2024-0308, 262-689600-2023-0308, 262-000559-2024-0308, and 264-547238-2022-0308 Award Period: July 1, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of Allowable Costs/Cost Principles. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurance that charges are accurate; allowable and reasonable; and properly allocated. Condition: Internal controls were not in place to ensure time and effort documentation was consistently tracked and supported. Questioned costs: $3,084 Context: For 4 of 40 payroll transactions tested, we identified the City did not maintain documentation of time and effort supporting the charges to the program. Cause: Procedures are not in place to maintain the required supporting documentation for the salaries charged to the grant. Effect: The salary charges are subject to disallowance and are considered questioned costs. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2023-002. Recommendation: We recommend management implement procedures to ensure that salaries charged to the grant are appropriate and are supported by the required time and effort support and that a consistent policy is applied. Views of responsible officials: There is no disagreement with the audit finding.
Moving forward all Time & Efforts Records for federal grant funded positions will be on a single schedule (December and June) of each calendar year and tracked by each program department with support from administrative assistants. All forms will be collected electronically and remain on file in one central location in the Finance Department through Grants. This process was begun last year and worked well, but we learned that we need to include a mechanism for ensuring that staff complete Time and Effort forms upon their departure if they leave their role/the district prior to the December or June collection dates. We are working with HR to make sure that this is part of the exit process for any federally-funded staff.
2023-002
Internal controls were not in place to ensure proper federal procurement standards were being followed for transactions that were transferred to the federal grant. Questioned costs: $320,294 Context: For 2 instances of the 5 contracts tested, we identified that expenses were transferred to a federal grant and the underlying contracts were not in compliance with federal procurement requirements. Cause: Procedures are not in place to ensure proper federal procurement standards were being met prior to transferring expenses to a federal grant. Effect: Noncompliance with federal procurement compliance requirements. Repeat Finding: No. Recommendation: We recommend management implement procedures to ensure expenses transferred to a federal grant are meeting federal procurement standards. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 240-542976-2022-0308, 240-689599-2023-0308, 240-000558-2024-0308, 252-546624-2022-0308, 274-000662-2024-0308, 262-689600-2023-0308, 262-000559-2024-0308, and 264-547238-2022-0308 Award Period: July 1, 2023 - June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Qualified Opinion) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Condition: Internal controls were not in place to ensure proper federal procurement standards were being followed for transactions that were transferred to the federal grant. Questioned costs: $320,294 Context: For 2 instances of the 5 contracts tested, we identified that expenses were transferred to a federal grant and the underlying contracts were not in compliance with federal procurement requirements. Cause: Procedures are not in place to ensure proper federal procurement standards were being met prior to transferring expenses to a federal grant. Effect: Noncompliance with federal procurement compliance requirements. Repeat Finding: No. Recommendation: We recommend management implement procedures to ensure expenses transferred to a federal grant are meeting federal procurement standards. Views of responsible officials: There is no disagreement with the audit finding.
The Fiscal Coordinator, Supervisor of Transportation, Assistant Superintendent of Finance and Operations, and Grants Manager have all been briefed on the procurement standards. The Grants Manager will develop a grants management manual to share with all educators and administrators who are implementing grants, and will meet individually with the lead person on each grant to make sure all standards and procedures are clear. The Business Office will update the Grants Requisition Form to include a field to indicate whether procurement standards have been met. Both the Grants Manager and Assistant Superintendent of Finance and Operations are required to sign off on all Grant Requisition Forms.
Internal controls were not in place to ensure suspension and debarment checks were being performed prior to entering into a contract. Questioned costs: None Context: For 1 instance of the 3 contracts tested, a suspension and debarment check was not performed, for 1 instance out if the 3 contracts tested, a suspension and debarment check has not been performed during the current grant year, and for 1 instance, a suspension and debarment check was performed after expenses had already occurred. Cause: Procedures are not in place to ensure all vendors are checked to ensure they are not suspended or debarred prior to entering into a contract with a vendor. In addition, for transactions which are originally not expected to be funded with federal funds and later transferred did not meet federal suspension and debarment standards. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2023-003. Recommendation: We recommend that management implement procedures to ensure that vendors are checked to ensure that they are not suspended or debarred prior to entering into a contract with a vendor and that expenses transferred to a federal grant have met the federal suspension and debarment standards. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 240-542976-2022-0308, 240-689599-2023-0308, 240-000558-2024-0308, 252-546624-2022-0308, 274-000662-2024-0308, 262-689600-2023-0308, 262-000559-2024-0308, and 264-547238-2022-0308 Award Period: July 1, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Condition: Internal controls were not in place to ensure suspension and debarment checks were being performed prior to entering into a contract. Questioned costs: None Context: For 1 instance of the 3 contracts tested, a suspension and debarment check was not performed, for 1 instance out if the 3 contracts tested, a suspension and debarment check has not been performed during the current grant year, and for 1 instance, a suspension and debarment check was performed after expenses had already occurred. Cause: Procedures are not in place to ensure all vendors are checked to ensure they are not suspended or debarred prior to entering into a contract with a vendor. In addition, for transactions which are originally not expected to be funded with federal funds and later transferred did not meet federal suspension and debarment standards. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2023-003. Recommendation: We recommend that management implement procedures to ensure that vendors are checked to ensure that they are not suspended or debarred prior to entering into a contract with a vendor and that expenses transferred to a federal grant have met the federal suspension and debarment standards. Views of responsible officials: There is no disagreement with the audit finding.
The Business Office will update the Grants Requisition Form to include a field to indicate whether or not a Debarment Certification is required. Both the Grants Manager and Assistant Superintendent of Finance and Operations are required to sign off on all Grant Requisition Forms. Additionally, the Fiscal Coordinator will work with her Accounts Payable team to make sure they are double checking the Debarment Certification field as part of their review of all submitted grant requisitions.
2023-003
FAC accepted this audit on March 29, 2024 — management decision was due September 29, 2024.
Internal controls were not in place to ensure the accuracy of the financial reporting requirements. Questioned costs: None. Context: 4 of the 8 instances tested, it was noted that the PR 29 Cash on Hand Quarterly Reports where beginning cash on hand did not agree to the prior quarter's ending cash on hand. Cause: Procedures were not in place to ensure the accuracy of the information reported in the PR 29 - Cash on Hand Quarterly Reports within the IDIS system. Effect: Inaccurate reporting within the IDIS system. Repeat Finding: No. Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reported the in the IDIS system. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: CDBG - Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Award Identification Number and Year: Program Year 2022 (FY23) Award Period: July 1, 2022 - June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of reporting. Condition: Internal controls were not in place to ensure the accuracy of the financial reporting requirements. Questioned costs: None. Context: 4 of the 8 instances tested, it was noted that the PR 29 Cash on Hand Quarterly Reports where beginning cash on hand did not agree to the prior quarter's ending cash on hand. Cause: Procedures were not in place to ensure the accuracy of the information reported in the PR 29 - Cash on Hand Quarterly Reports within the IDIS system. Effect: Inaccurate reporting within the IDIS system. Repeat Finding: No. Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reported the in the IDIS system. Views of responsible officials: There is no disagreement with the audit finding.
Community Development Block Grant – Assistance Listing No. 14.218 Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reported the in the IDIS system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have had this issue with the IDIS System in the past and have worked with HUD to correct it. We have reached out to HUD and will work with them again to rectify this issue. Name(s) of the contact person(s) responsible for corrective action: Robert Waters Planned completion date for corrective action plan: ASAP
Internal controls were not in place to ensure time and effort documentation was consistently tracked and supported. Questioned costs: $4,979 Context: For 4 of 40 payroll transactions tested, we identified the City did not maintain documentation of time and effort supporting the charges to the program. In addition, 11 of the 40 payroll transactions tested did not utilize a consistent methodology of ensuring that time and effort documentation is performed. Cause: Procedures are not in place to maintain the required supporting documentation for the salaries charged to the grant. Effect: The salary charges are subject to disallowance and are considered questioned costs. Repeat Finding: No. Recommendation: We recommend management implement procedures to ensure that salaries charged to the grant are appropriate and are supported by the required time and effort support and that a consistent policy is applied. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 240-542976-2002-0308, 240-689599-2023-0308, 252-546624-2022-0308, 262-542977-2022-0308, 262-689600-2023-0308, 264-547238-2022-0308 Award Period: July 1, 2022 - June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of Allowable Costs/Cost Principles. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurance that charges are accurate; allowable and reasonable; and properly allocated. Condition: Internal controls were not in place to ensure time and effort documentation was consistently tracked and supported. Questioned costs: $4,979 Context: For 4 of 40 payroll transactions tested, we identified the City did not maintain documentation of time and effort supporting the charges to the program. In addition, 11 of the 40 payroll transactions tested did not utilize a consistent methodology of ensuring that time and effort documentation is performed. Cause: Procedures are not in place to maintain the required supporting documentation for the salaries charged to the grant. Effect: The salary charges are subject to disallowance and are considered questioned costs. Repeat Finding: No. Recommendation: We recommend management implement procedures to ensure that salaries charged to the grant are appropriate and are supported by the required time and effort support and that a consistent policy is applied. Views of responsible officials: There is no disagreement with the audit finding.
Special Education Cluster – Assistance Listing No. 84.IDEA Recommendation: We recommend management implement procedures to ensure that salaries charged to the grant are appropriate and are supported by the required time and effort support and that a consistent policy is applied. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Moving forward all Time & Efforts Records for federal grant funded positions will be on a single schedule (December and June) of each calendar year and tracked by each program department with support from administrative assistants. All forms will be collected electronically and remain on file in one central location in the Finance Department through Grants. Name(s) of the contact person(s) responsible for corrective action: Shelly Chin – Administrator of Communications, Grants, Partnerships & Strategy Planned completion date for corrective action plan: This will be an ongoing procedure that will be implemented immediately.
Internal controls were not in place to ensure suspension and debarment checks were being performed prior to entering into a contract. Questioned costs: None. Context: For 1 instance of the 2 contracts tested, a suspension and debarment check was performed after the contract date. Cause: Procedures were not in place to ensure all vendors are checked to ensure they are not suspended or debarred prior to entering into a contract with a vendor. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the review of controls to ensure an adequate review process is in place to ensure that suspension and debarment checks are performed prior to contracting with vendor. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 240-542976-2002-0308, 240-689599-2023-0308, 252-546624-2022-0308, 262-542977-2022-0308, 262-689600-2023-0308, 264-547238-2022-0308 Award Period: July 1, 2022 - June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Condition: Internal controls were not in place to ensure suspension and debarment checks were being performed prior to entering into a contract. Questioned costs: None. Context: For 1 instance of the 2 contracts tested, a suspension and debarment check was performed after the contract date. Cause: Procedures were not in place to ensure all vendors are checked to ensure they are not suspended or debarred prior to entering into a contract with a vendor. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the review of controls to ensure an adequate review process is in place to ensure that suspension and debarment checks are performed prior to contracting with vendor. Views of responsible officials: There is no disagreement with the audit finding.
Special Education Cluster – Assistance Listing No. 84.IDEA Recommendation: We recommend the review of controls to ensure an adequate review process is in place to ensure that suspension and debarment checks are performed prior to contracting with vendor. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Going forward the school department will be using the same Debarment Certification Form that the City of Waltham’s Purchasing Agent uses. We will have this form filled out for any purchases made using grant money that is in excess of $25,000. We will keep this certification with the purchase order. Name(s) of the contact person(s) responsible for corrective action: Lisa Butler – Fiscal Coordinator Shelly Chin – Administrator of Communications, Grants, Partnerships & Strategy Planned completion date for corrective action plan: This will be an ongoing procedure that will be implemented immediately.
Internal controls were not in place to ensure that all compliance requirements per the grant were being met. Questioned costs: None. Context: CLA notes that a physical inventory count was not performed within the last 2 years on 8 of the 8 assets selected for testing. Cause: Procedures were not in place to ensure that a physical inventory count is being performed every 2 years for assets purchased with federal funds. Effect: Failing to complete a physical inventory count of assets purchased with federal funds. Repeat Finding: No. Recommendation: Procedures should be updated to ensure all assets purchased with federal funds go through a physical inventory count every 2 years. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Justice Federal Program Name: DEA Asset Forfeitures Assistance Listing Number: 16.922 Federal Award Identification Number and Year: Unknown Award Period: July 1, 2022 - June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR section 200.313(d)(2) requires that a physical inventory of the property to be taken and the results reconciled with the property records at least once every two years. Condition: Internal controls were not in place to ensure that all compliance requirements per the grant were being met. Questioned costs: None. Context: CLA notes that a physical inventory count was not performed within the last 2 years on 8 of the 8 assets selected for testing. Cause: Procedures were not in place to ensure that a physical inventory count is being performed every 2 years for assets purchased with federal funds. Effect: Failing to complete a physical inventory count of assets purchased with federal funds. Repeat Finding: No. Recommendation: Procedures should be updated to ensure all assets purchased with federal funds go through a physical inventory count every 2 years. Views of responsible officials: There is no disagreement with the audit finding.
DEA Asset Forfeitures – Assistance Listing No. 16.922 Recommendation: Procedures should be updated to ensure all assets purchased with federal funds go through a physical inventory count every 2 years. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Waltham Police Department Policy Chapter 17 – Fiscal Management – has been updated/amended adding a stand-alone paragraph mandating a physical annual audit of any assets purchased with federal funding. Name(s) of the contact person(s) responsible for corrective action: Deputy Police Chief Steven R. Champeon Planned completion date for corrective action plan: On or about April 5, 2024, the policy should be finalized and distributed department wide.
FAC accepted this audit on May 30, 2022 — management decision was due November 30, 2022.
Internal controls were not in place to ensure payroll charges submitted for reimbursement were properly calculated. Questioned Costs: None Reportable. Context: 1 of the 60 payroll expenditures tested used incorrect hourly rates to calculate reimbursable payroll charges. The sample was a statistically valid sample. Cause: Procedures were not in place to ensure the proper hourly rates were being used prior to submitting for reimbursement. Effect: The expenses charged are subject to disallowance and are considered questioned costs. Recommendation: Management should review its procedures and make changes as necessary to ensure proper pay rates are used to substantiate all costs charged to grants. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Criteria or specific requirement: 2 CFR, Part 200, 200.303 requires an auditee to establish and maintain effective internal control over federal awards to ensure compliance with federal statutes, regulations and the terms and conditions of the federal award. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those allowable cost provisions. Condition: Internal controls were not in place to ensure payroll charges submitted for reimbursement were properly calculated. Questioned Costs: None Reportable. Context: 1 of the 60 payroll expenditures tested used incorrect hourly rates to calculate reimbursable payroll charges. The sample was a statistically valid sample. Cause: Procedures were not in place to ensure the proper hourly rates were being used prior to submitting for reimbursement. Effect: The expenses charged are subject to disallowance and are considered questioned costs. Recommendation: Management should review its procedures and make changes as necessary to ensure proper pay rates are used to substantiate all costs charged to grants. Views of responsible officials: There is no disagreement with the audit finding.
Payroll expenses were recalculated using the proper pay rates and the discrepancy in those expenses to what was submitted for reimbursement were returned to the State.
FAC accepted this audit on March 24, 2021 — management decision was due September 24, 2021.
Internal controls were not in place to ensure the accuracy of the financial reporting requirements. Questioned costs: None Context: The annual C04PR-26 report was tested for accuracy and certain amounts reported in the IDIS report were unable to be traced to the underlying accounting records or other support. Cause: Procedures were not in place to ensure the accuracy of the information reporting in the C04PR26 within the IDIS system. Effect: Inaccurate reporting within the IDIS system. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2019-001. Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reporting the in the IDIS system. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program: Community Development Block Grant CFDA Number: 14.218 Award Period: July 1, 2019 ? June 30, 2020 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Compliance Requirement: Reporting Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of reporting. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Financial Reporting ? The City of Waltham, Massachusetts is required annually to submit a C04PR26 ? CDBG Financial Summary report through the Integrated Disbursements and Information System (IDIS). Condition: Internal controls were not in place to ensure the accuracy of the financial reporting requirements. Questioned costs: None Context: The annual C04PR-26 report was tested for accuracy and certain amounts reported in the IDIS report were unable to be traced to the underlying accounting records or other support. Cause: Procedures were not in place to ensure the accuracy of the information reporting in the C04PR26 within the IDIS system. Effect: Inaccurate reporting within the IDIS system. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2019-001. Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reporting the in the IDIS system. Views of responsible officials: There is no disagreement with the audit finding.
Action taken in response to finding: Amendments were made to the Planning Department Procedures Manual to reflect additional steps that will be taken to reconcile program funds at the each of program year for reporting purposes. Name(s) of the contact person(s) responsible for corrective action: Benjamin Delaney, Principal Planner and Deborah Flanagan, Assistant Housing Supervisor Planned completion date for corrective action plan: Immediately
2019-001
FAC accepted this audit on January 12, 2020 — management decision was due July 12, 2020.
Internal controls were not in place to ensure the accuracy of the financial reporting requirements. Questioned costs: None Context: The annual C04PR-26 report was tested for accuracy and certain amounts reported in the IDIS report were unable to be traced to the underlying accounting records or other support. Cause: Procedures were not in place to ensure the accuracy of the information reporting in the C04PR26 within the IDIS system. Effect: Inaccurate reporting within the IDIS system. Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reporting the in the IDIS system. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program: Community Development Block Grant CFDA Number: 14.218 Award Period: July 1, 2018 ? June 30, 2019 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Compliance Requirement: Reporting Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of reporting. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Finacial Reporting ? The City of Waltham, Massachusetts is required annually to submit a C04PR26 ? CDBG Financial Summary report through the Integrated Disbursements and Information System (IDIS) Condition: Internal controls were not in place to ensure the accuracy of the financial reporting requirements. Questioned costs: None Context: The annual C04PR-26 report was tested for accuracy and certain amounts reported in the IDIS report were unable to be traced to the underlying accounting records or other support. Cause: Procedures were not in place to ensure the accuracy of the information reporting in the C04PR26 within the IDIS system. Effect: Inaccurate reporting within the IDIS system. Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reporting the in the IDIS system. Views of responsible officials: There is no disagreement with the audit finding.
Action taken in response to finding: It is the Planning Department?s understanding that the finding is related to the 2017-2018 PR-26 report, which misstated the amount of unexpended carryover. The corrected 2017-2018 PR-26 report was provided to CLA, along with the City?s expenditure report, confirming the City had reconciled the amounts. Additionally, CDBG staff members have completed the CDBG Origin Year Expenditure Test Webinar (7/30/2019) on the HUD Exchange and have also reviewed the PR-26 CDBG Financial Summary Report Trouble Shooting Guide (Version March 2017). Both of these resources assisted the staff with understanding the PR-26 and the unexpended carryover balance. Due to these resources, the City was able to upload the 2018-2019 PR-26 with the CAPER in IDIS, accompanied by the City?s expenditure reports. The City is waiting for HUD?s response regarding whether or not the report is accurate and acceptable. In an effort to ensure the finding does not reoccur, and the City Auditors Office reconciles with IDIS, the CDBG Policies and Procedures Manual has been updated to include the following language: Any CDBG related invoice processed for payment by the Planning Department after June 15, will contain a note instructing the Auditor?s Office to record the transaction in the fiscal year ending June 30. This process will continue until HUD?s 90 day grace period has ended on September 30 of the new fiscal year. At the end of the grace period, the Planning Department will produce a memo containing each line item recorded in the prior fiscal year and reconcile the line items with the Auditor?s Office expenditure report. These amounts will be reconciled with the carry over amount reported on the PR-26 prior to submission of the CAPER to HUD in IDIS. Name(s) of the contact person(s) responsible for corrective action: Catherine Cagle, Planning Director Planned completion date for corrective action plan: Completed
Internal controls were not in place to ensure the accuracy of the environmental review exemption documentation. Questioned costs: None Context: 2 of the 8 projects tested were exempt from the environmental review requirement. However, the documentation reviewed stated the projects were exempt under 24 CFR section 58.34(a)(4) when in fact the projects were exempt under 24 CFR section 58.34(a)(10). Sample was a statistically valid sample. Cause: Procedures were not in place to ensure the accuracy of the information reported in the environmental review exclusion letters created for each project. Effect: We noted no instances of noncompliance with the provisions of environmental reviews; however, the lack of internal controls over the accuracy of the documented exemptions provides an opportunity for noncompliance if the project is inappropriately reported as exempt. Recommendation: Procedures should be updated to review and ensure the accuracy of the environmental review procedures and documentation. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program: Community Development Block Grant CFDA Number: 14.218 Award Period: July 1, 2018 ? June 30, 2019 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Compliance Requirement: Special Tests and Provisions Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of special tests and provisions. The City of Waltham, Massachusetts should have internal controls designed to ensure compliance with those provisions. Environmental Reviews ? The City of Waltham, Massachusetts must have an environmental review for all projects unless they meet criteria specified in the regulations that would exempt or exclude them from RROF and environmental certification requirements (24 CFR sections 58.1, 58.22, 58.34, 58.35, and 570.604). Condition: Internal controls were not in place to ensure the accuracy of the environmental review exemption documentation. Questioned costs: None Context: 2 of the 8 projects tested were exempt from the environmental review requirement. However, the documentation reviewed stated the projects were exempt under 24 CFR section 58.34(a)(4) when in fact the projects were exempt under 24 CFR section 58.34(a)(10). Sample was a statistically valid sample. Cause: Procedures were not in place to ensure the accuracy of the information reported in the environmental review exclusion letters created for each project. Effect: We noted no instances of noncompliance with the provisions of environmental reviews; however, the lack of internal controls over the accuracy of the documented exemptions provides an opportunity for noncompliance if the project is inappropriately reported as exempt. Recommendation: Procedures should be updated to review and ensure the accuracy of the environmental review procedures and documentation. Views of responsible officials: There is no disagreement with the audit finding.
Action taken in response to finding: Planning Department Staff members have reviewed all environmental reviews for open projects for accuracy. During this review, there were no discrepancies found. The two incorrect environmental reviews have been amended to contain the correct legal citation for the exempt activities. These corrected environmental reviews have also been converted into ?templates? in order to assist staff with accurate citations in the future. Additionally, all staff members will complete web-based HUD Exchange trainings on how to complete environmental reviews (https://www.hudexchange.info/programs/environmental-review/environmental-review-training/#environmental-review-procedures-and-resources). This training will be completed by January 31, 2020. Name(s) of the contact person(s) responsible for corrective action: Catherine Cagle, Planning Director Planned completion date for corrective action plan: Completed
FAC accepted this audit on March 24, 2019 — management decision was due September 24, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2017-001
FAC accepted this audit on January 14, 2018 — management decision was due July 14, 2018.
GSA_MIGRATION
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GSA_MIGRATION
2016-003
FAC accepted this audit on March 23, 2017 — management decision was due September 23, 2017.
GSA_MIGRATION
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