City of Tacoma lacked internal controls, WA state audit says | Tacoma News Tribune

The City of Tacoma is under scrutiny following a state audit that found inadequate internal controls for federal reporting and wage-rate compliance. In 2023, city staff did not comply with the Federal Funding Accountability and Transparency Act (FFATA), which requires timely reporting of federal awards. Tacoma's $2 million Links to Opportunity Streetscape Project lacked essential federal wage-rate provisions in its contracts, a significant oversight noted by auditors. The city failed to submit required FFATA reports for $2. 2 million in sub-awards, which was classified as a material weakness, risking federal accountability.

Although city management has begun corrective actions, the lack of adequate monitoring prompted auditors to recommend enhanced training for staff managing federal grants. Tacoma has pledged to update training materials and improve communication regarding reporting requirements. The state auditor will review the city's compliance efforts in the next audit, highlighting the urgency for timely action.