Audit 310883

MW 2023-001 REPORTING Assistance Listing No. 14.228 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 2022-2023 Funding U.S. Department of Housing and Urban Development Passed through the Florida Department of Economic Opportunity Per 2 CFR 200.303, non-Federal entities must establish and maintain effective internal controls to provide reasonable assurance of compliance with the Uniform Guidance and the Florida Small Cities Community Development Block Grant Program Act. CONDITION: The following reports were not reviewed prior to submission to the State of Florida Department of Economic Opportunity: . Quarterly Progress Report, Form SC-65; i. Contract and Subcontract Activity form, Form HUD-2516; and ii. Section 3 Summary Report, form HUD-60002 Additionally, two out of the two Quarterly Progress Reports tested were filed late. For one out of the two Contract and Subcontract Activity forms tested, the City did not have evidence of the submission to the State of Florida Department of Economic Opportunity. CAUSE OF CONDITION: Procedures are not in place internally for the review and approval of reports required by the State of Florida Department of Economic Opportunity for CDBG grant funding. POTENTIAL EFFECT OF CONDITION: Potential for unintended errors to occur without being immediately identified and corrected. The City was not in compliance with the Uniform Guidance and the Florida Small Cities Community Development Block Grant Program Act. PERSPECTIVE: All of the reports identified above were not reviewed. RECOMMENDATION: Reports prepared by the Special Projects Manager should be reviewed by an independent person to ensure completeness and accuracy. Additionally, the City should design a control to ensure reports are submitted in a timely manner in accordance with compliance requirements. MANAGEMENT RESPONSE: The City agrees with the recommendation to strengthen internal controls over grant reporting processes. To enhance accountability and accuracy, grant reports authored by the designated grant recipient, who is the City employee tasked with managing the grant activity, will now undergo a review by someone else in the City independent of the report preparation. This review will focus on ensuring the reports are complete, accurate, and fully compliant with all stipulated grant requirements.

MW 2023-001 REPORTING Assistance Listing No. 14.228 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 2022-2023 Funding U.S. Department of Housing and Urban Development Passed through the Florida Department of Economic Opportunity Per 2 CFR 200.303, non-Federal entities must establish and maintain effective internal controls to provide reasonable assurance of compliance with the Uniform Guidance and the Florida Small Cities Community Development Block Grant Program Act. CONDITION: The following reports were not reviewed prior to submission to the State of Florida Department of Economic Opportunity: . Quarterly Progress Report, Form SC-65; i. Contract and Subcontract Activity form, Form HUD-2516; and ii. Section 3 Summary Report, form HUD-60002 Additionally, two out of the two Quarterly Progress Reports tested were filed late. For one out of the two Contract and Subcontract Activity forms tested, the City did not have evidence of the submission to the State of Florida Department of Economic Opportunity. CAUSE OF CONDITION: Procedures are not in place internally for the review and approval of reports required by the State of Florida Department of Economic Opportunity for CDBG grant funding. POTENTIAL EFFECT OF CONDITION: Potential for unintended errors to occur without being immediately identified and corrected. The City was not in compliance with the Uniform Guidance and the Florida Small Cities Community Development Block Grant Program Act. PERSPECTIVE: All of the reports identified above were not reviewed. RECOMMENDATION: Reports prepared by the Special Projects Manager should be reviewed by an independent person to ensure completeness and accuracy. Additionally, the City should design a control to ensure reports are submitted in a timely manner in accordance with compliance requirements. MANAGEMENT RESPONSE: The City agrees with the recommendation to strengthen internal controls over grant reporting processes. To enhance accountability and accuracy, grant reports authored by the designated grant recipient, who is the City employee tasked with managing the grant activity, will now undergo a review by someone else in the City independent of the report preparation. This review will focus on ensuring the reports are complete, accurate, and fully compliant with all stipulated grant requirements.