Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-22-DC-08-0001 - 2022 Pass-Through Agency: Colorado Department of Local Affairs Pass-Through Number: F16CDB16602 Award Period: April 1, 2020 ? March 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter 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 Council should have internal controls designed to ensure compliance with those provisions. Condition: The Council did not prepare performance reports in 2022. Questioned Costs: None Context: In testing the Community Development Block Grants (CDBG) program, the online portal for submitting reimbursement requests and reports has not been working since August 2022. However, the required performance reports were not being prepared by program personnel in the meantime. Cause: Performance reports were not being prepared because the portal was not functioning. Effect: The lack of preparation of performance reports provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend preparing the required reports under the CDBG program to be ready for uploading to the portal once it is accessible to ensure reporting requirements are met. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-21-DC-08-0001 - 2021 Pass-Through Agency: Colorado Department of Local Affairs Pass-Through Number: F16CDB16602 Award Period: April 1, 2020 ? March 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: In accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), the Council should report all federal expenditures in the schedule of expenditures of federal awards (SEFA) each fiscal year. Additionally, per 2 CFR section 200.502(a)-(d), the determination of when a federal award is expended must be based on when the activity related to the federal award occurs, including the value of new loans made during the audit period. Condition: In reviewing the expenditure detail and supporting documentation for the 2022 SEFA, the Council had omitted approximately $726,000 of federal expenditures from the 2021 SEFA that were expended as part of the loan program in 2021. These loans were included in the SEFA for 2022 and audited as a major program for 2022. Questioned Costs: Unknown Context: The omission of expenditures from the 2021 SEFA was identified during testing of the current year major program. The seven omitted loans from 2021 were include in the 2022 loan activity for testing. Cause: In 2022, requests for reimbursement were submitted for certain loans distributed in 2021 that were not reflected on the 2021 SEFA. Effect: Excluding program expenditures from the SEFA results in the Council being out of compliance with the requirements of individual grant agreements and the Uniform Grant Guidance. Repeat Finding: No Recommendation: We recommend that the Council record federal expenditures on the SEFA under the program in the year upon which the loan disbursement occurs. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: Department of Health and Human Services Federal Program Title: Aging Cluster Assistance Listing Number: 93.AGING Federal Award Identification Number and Year: 2101COSSC6-00 - 2021 Pass-Through Agency: Colorado Department of Human Services Pass-Through Number: None provided Award Period: February 1, 2021 ? September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires charges to federal awards for salaries and wages be based on records that accurately reflect the work performed. These records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: One hourly employee?s wages was underpaid and were not charged to the grant when compared to the hours per the approved timesheet. Questioned Costs: None Context: For one payroll transaction of five tested, the hourly employee?s gross wages were underpaid and undercharged to the grant by $128 based on four hours that were improperly omitted from final payroll. Cause: Entering payroll into QuickBooks using the approved timesheet for hourly employees is a manual process. For this individual, the timesheet reported 84 hours of regular pay and four hours of paid staff leave. Four regular pay hours were improperly omitted from the hours paid as these were misinterpreted to be the four hours of paid hourly staff leave. Effect: For the June 30, 2022 pay period, the employee was underpaid, and the grant was undercharged a total of $128. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-002. Recommendation: We recommend the Council review its payroll procedures over hourly employees to ensure all hours are properly accounted for by pay code in the final payroll. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-22-DC-08-0001 - 2022 Pass-Through Agency: Colorado Department of Local Affairs Pass-Through Number: F16CDB16602 Award Period: April 1, 2020 ? March 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter 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 Council should have internal controls designed to ensure compliance with those provisions. Condition: The Council did not prepare performance reports in 2022. Questioned Costs: None Context: In testing the Community Development Block Grants (CDBG) program, the online portal for submitting reimbursement requests and reports has not been working since August 2022. However, the required performance reports were not being prepared by program personnel in the meantime. Cause: Performance reports were not being prepared because the portal was not functioning. Effect: The lack of preparation of performance reports provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend preparing the required reports under the CDBG program to be ready for uploading to the portal once it is accessible to ensure reporting requirements are met. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-21-DC-08-0001 - 2021 Pass-Through Agency: Colorado Department of Local Affairs Pass-Through Number: F16CDB16602 Award Period: April 1, 2020 ? March 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: In accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), the Council should report all federal expenditures in the schedule of expenditures of federal awards (SEFA) each fiscal year. Additionally, per 2 CFR section 200.502(a)-(d), the determination of when a federal award is expended must be based on when the activity related to the federal award occurs, including the value of new loans made during the audit period. Condition: In reviewing the expenditure detail and supporting documentation for the 2022 SEFA, the Council had omitted approximately $726,000 of federal expenditures from the 2021 SEFA that were expended as part of the loan program in 2021. These loans were included in the SEFA for 2022 and audited as a major program for 2022. Questioned Costs: Unknown Context: The omission of expenditures from the 2021 SEFA was identified during testing of the current year major program. The seven omitted loans from 2021 were include in the 2022 loan activity for testing. Cause: In 2022, requests for reimbursement were submitted for certain loans distributed in 2021 that were not reflected on the 2021 SEFA. Effect: Excluding program expenditures from the SEFA results in the Council being out of compliance with the requirements of individual grant agreements and the Uniform Grant Guidance. Repeat Finding: No Recommendation: We recommend that the Council record federal expenditures on the SEFA under the program in the year upon which the loan disbursement occurs. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: Department of Health and Human Services Federal Program Title: Aging Cluster Assistance Listing Number: 93.AGING Federal Award Identification Number and Year: 2101COSSC6-00 - 2021 Pass-Through Agency: Colorado Department of Human Services Pass-Through Number: None provided Award Period: February 1, 2021 ? September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires charges to federal awards for salaries and wages be based on records that accurately reflect the work performed. These records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: One hourly employee?s wages was underpaid and were not charged to the grant when compared to the hours per the approved timesheet. Questioned Costs: None Context: For one payroll transaction of five tested, the hourly employee?s gross wages were underpaid and undercharged to the grant by $128 based on four hours that were improperly omitted from final payroll. Cause: Entering payroll into QuickBooks using the approved timesheet for hourly employees is a manual process. For this individual, the timesheet reported 84 hours of regular pay and four hours of paid staff leave. Four regular pay hours were improperly omitted from the hours paid as these were misinterpreted to be the four hours of paid hourly staff leave. Effect: For the June 30, 2022 pay period, the employee was underpaid, and the grant was undercharged a total of $128. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-002. Recommendation: We recommend the Council review its payroll procedures over hourly employees to ensure all hours are properly accounted for by pay code in the final payroll. Views of Responsible Officials: There is no disagreement with the audit finding.