Audit 25888

2022-001 Federal Agency Name: U.S. Department of Housing and Urban Development Federal Financial Assistance Listing Number: 14.218 Federal Program Name: CDBG ? Entitlements Grant Cluster Compliance Requirement: Reporting Material Weakness in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR Part 170 establishes requirements for recipients? reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA). Condition: We noted that the City did not have a process to identify that FFATA reporting was required and did not report any information on subawards as required by FFATA. Cause: Due to the ongoing COVID-19 pandemic, there was redirecting of what personnel at the City was responsible for completing FFATA reporting and it got missed during the reassignment of responsibilities. Effect: Ineffective controls over this area of compliance could result in reports that are inaccurate, or incomplete being submitted to the federal agency. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No reports were tested. Repeat Finding from Prior Year(s): No Recommendation: We recommend that management strengthen their processes and procedures related to the submission of the required FFATA reports to ensure compliance with the program requirements. We also recommend that management establish documented review of the required FFATA reports by an individual other than the preparer prior to submission and retain record of the review and submission. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.

2022-001 Federal Agency Name: U.S. Department of Housing and Urban Development Federal Financial Assistance Listing Number: 14.218 Federal Program Name: CDBG ? Entitlements Grant Cluster Compliance Requirement: Reporting Material Weakness in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR Part 170 establishes requirements for recipients? reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA). Condition: We noted that the City did not have a process to identify that FFATA reporting was required and did not report any information on subawards as required by FFATA. Cause: Due to the ongoing COVID-19 pandemic, there was redirecting of what personnel at the City was responsible for completing FFATA reporting and it got missed during the reassignment of responsibilities. Effect: Ineffective controls over this area of compliance could result in reports that are inaccurate, or incomplete being submitted to the federal agency. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No reports were tested. Repeat Finding from Prior Year(s): No Recommendation: We recommend that management strengthen their processes and procedures related to the submission of the required FFATA reports to ensure compliance with the program requirements. We also recommend that management establish documented review of the required FFATA reports by an individual other than the preparer prior to submission and retain record of the review and submission. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.

2022-001 Federal Agency Name: U.S. Department of Housing and Urban Development Federal Financial Assistance Listing Number: 14.218 Federal Program Name: CDBG ? Entitlements Grant Cluster Compliance Requirement: Reporting Material Weakness in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR Part 170 establishes requirements for recipients? reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA). Condition: We noted that the City did not have a process to identify that FFATA reporting was required and did not report any information on subawards as required by FFATA. Cause: Due to the ongoing COVID-19 pandemic, there was redirecting of what personnel at the City was responsible for completing FFATA reporting and it got missed during the reassignment of responsibilities. Effect: Ineffective controls over this area of compliance could result in reports that are inaccurate, or incomplete being submitted to the federal agency. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No reports were tested. Repeat Finding from Prior Year(s): No Recommendation: We recommend that management strengthen their processes and procedures related to the submission of the required FFATA reports to ensure compliance with the program requirements. We also recommend that management establish documented review of the required FFATA reports by an individual other than the preparer prior to submission and retain record of the review and submission. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.

2022-001 Federal Agency Name: U.S. Department of Housing and Urban Development Federal Financial Assistance Listing Number: 14.218 Federal Program Name: CDBG ? Entitlements Grant Cluster Compliance Requirement: Reporting Material Weakness in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR Part 170 establishes requirements for recipients? reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA). Condition: We noted that the City did not have a process to identify that FFATA reporting was required and did not report any information on subawards as required by FFATA. Cause: Due to the ongoing COVID-19 pandemic, there was redirecting of what personnel at the City was responsible for completing FFATA reporting and it got missed during the reassignment of responsibilities. Effect: Ineffective controls over this area of compliance could result in reports that are inaccurate, or incomplete being submitted to the federal agency. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No reports were tested. Repeat Finding from Prior Year(s): No Recommendation: We recommend that management strengthen their processes and procedures related to the submission of the required FFATA reports to ensure compliance with the program requirements. We also recommend that management establish documented review of the required FFATA reports by an individual other than the preparer prior to submission and retain record of the review and submission. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.