Audit 344938

Finding 2024-002 - Reporting - Significant Deficiency Name of Federal Agency: Department of the Treasury and Department of Health and Human Services Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds and Certified Community Behavioral Health Clinic Expansion Grants Assistance Listing Number: 21.027 and 93.696 Federal Award Identification Number and Year: HS 2024-105, HS 2024-209, HS 2024-202 and 1H79SM086628-01. Program year is 2024. Name of Pass-through Entity (if applicable): Department of Housing and Community Development Criteria: In accordance with §200.328, Financial reporting, the recipient or subrecipient must submit financial reports as required by the Federal award. Additionally, in accordance with §200.329, Monitoring and reporting program performance, the recipient or subrecipient must submit performance reports as required by the Federal award. Condition: The Agency did not have internal controls over its reporting compliance requirement under Uniform Guidance. Cause: The Agency did not have internal controls in place to ensure that reporting requirements were prepared, reviewed and submitted on a timely basis. Effect or Potential Effect: Failure to perform reporting procedures in accordance with the Uniform Guidance could result in the reports being inaccurate or not filed on a timely basis. Questioned Costs: Not applicable. Context: For 100% of reports selected (total of 4), management did not provide adequate supporting documentation of the controls in place for the preparation, review and timely submission of the reports. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Agency establish internal controls over its reporting compliance reporting requirements to ensure that the Agency is in compliance with Uniform Guidance. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address this issue.

Finding 2024-002 - Reporting - Significant Deficiency Name of Federal Agency: Department of the Treasury and Department of Health and Human Services Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds and Certified Community Behavioral Health Clinic Expansion Grants Assistance Listing Number: 21.027 and 93.696 Federal Award Identification Number and Year: HS 2024-105, HS 2024-209, HS 2024-202 and 1H79SM086628-01. Program year is 2024. Name of Pass-through Entity (if applicable): Department of Housing and Community Development Criteria: In accordance with §200.328, Financial reporting, the recipient or subrecipient must submit financial reports as required by the Federal award. Additionally, in accordance with §200.329, Monitoring and reporting program performance, the recipient or subrecipient must submit performance reports as required by the Federal award. Condition: The Agency did not have internal controls over its reporting compliance requirement under Uniform Guidance. Cause: The Agency did not have internal controls in place to ensure that reporting requirements were prepared, reviewed and submitted on a timely basis. Effect or Potential Effect: Failure to perform reporting procedures in accordance with the Uniform Guidance could result in the reports being inaccurate or not filed on a timely basis. Questioned Costs: Not applicable. Context: For 100% of reports selected (total of 4), management did not provide adequate supporting documentation of the controls in place for the preparation, review and timely submission of the reports. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Agency establish internal controls over its reporting compliance reporting requirements to ensure that the Agency is in compliance with Uniform Guidance. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address this issue.

Finding 2024-003 - Procurement - Significant Deficiency Name of Federal Agency: Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: HS 2024-105, HS 2024-209 and HS 2024-202. Program year is 2024. Name of Pass-through Entity (if applicable): Department of Housing and Community Development Criteria: In accordance with §200.318(a), General Procurement Standards, a non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, §200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. Condition: During our testing, we noticed that the Agency did not have a written procurement policy that complied with federal requirements. The Agency could not provide adequate supporting documentation which was completed at the time of the procurement transaction. Cause: The Agency did not have adequate internal controls to ensure that they complied with federal procurement standards. Effect or Potential Effect: Failure to perform procurement procedures in accordance with a written policy that complies with the Uniform Guidance could result in the procurement being disallowed. Questioned Costs: Not applicable. Context: For 100% of the procurement population (total of 3), management could not provide supporting documentation which was completed at the time of the procurement transaction. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Agency establish written procurement policies and internal controls around procurement. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address this issue.

Finding 2024-002 - Reporting - Significant Deficiency Name of Federal Agency: Department of the Treasury and Department of Health and Human Services Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds and Certified Community Behavioral Health Clinic Expansion Grants Assistance Listing Number: 21.027 and 93.696 Federal Award Identification Number and Year: HS 2024-105, HS 2024-209, HS 2024-202 and 1H79SM086628-01. Program year is 2024. Name of Pass-through Entity (if applicable): Department of Housing and Community Development Criteria: In accordance with §200.328, Financial reporting, the recipient or subrecipient must submit financial reports as required by the Federal award. Additionally, in accordance with §200.329, Monitoring and reporting program performance, the recipient or subrecipient must submit performance reports as required by the Federal award. Condition: The Agency did not have internal controls over its reporting compliance requirement under Uniform Guidance. Cause: The Agency did not have internal controls in place to ensure that reporting requirements were prepared, reviewed and submitted on a timely basis. Effect or Potential Effect: Failure to perform reporting procedures in accordance with the Uniform Guidance could result in the reports being inaccurate or not filed on a timely basis. Questioned Costs: Not applicable. Context: For 100% of reports selected (total of 4), management did not provide adequate supporting documentation of the controls in place for the preparation, review and timely submission of the reports. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Agency establish internal controls over its reporting compliance reporting requirements to ensure that the Agency is in compliance with Uniform Guidance. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address this issue.

Finding 2024-002 - Reporting - Significant Deficiency Name of Federal Agency: Department of the Treasury and Department of Health and Human Services Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds and Certified Community Behavioral Health Clinic Expansion Grants Assistance Listing Number: 21.027 and 93.696 Federal Award Identification Number and Year: HS 2024-105, HS 2024-209, HS 2024-202 and 1H79SM086628-01. Program year is 2024. Name of Pass-through Entity (if applicable): Department of Housing and Community Development Criteria: In accordance with §200.328, Financial reporting, the recipient or subrecipient must submit financial reports as required by the Federal award. Additionally, in accordance with §200.329, Monitoring and reporting program performance, the recipient or subrecipient must submit performance reports as required by the Federal award. Condition: The Agency did not have internal controls over its reporting compliance requirement under Uniform Guidance. Cause: The Agency did not have internal controls in place to ensure that reporting requirements were prepared, reviewed and submitted on a timely basis. Effect or Potential Effect: Failure to perform reporting procedures in accordance with the Uniform Guidance could result in the reports being inaccurate or not filed on a timely basis. Questioned Costs: Not applicable. Context: For 100% of reports selected (total of 4), management did not provide adequate supporting documentation of the controls in place for the preparation, review and timely submission of the reports. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Agency establish internal controls over its reporting compliance reporting requirements to ensure that the Agency is in compliance with Uniform Guidance. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address this issue.

Finding 2024-003 - Procurement - Significant Deficiency Name of Federal Agency: Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: HS 2024-105, HS 2024-209 and HS 2024-202. Program year is 2024. Name of Pass-through Entity (if applicable): Department of Housing and Community Development Criteria: In accordance with §200.318(a), General Procurement Standards, a non-federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in General Procurement Standards. Additionally, §200.318(i) states that the non-federal entity must maintain records sufficient to detail the history of the procurement. Condition: During our testing, we noticed that the Agency did not have a written procurement policy that complied with federal requirements. The Agency could not provide adequate supporting documentation which was completed at the time of the procurement transaction. Cause: The Agency did not have adequate internal controls to ensure that they complied with federal procurement standards. Effect or Potential Effect: Failure to perform procurement procedures in accordance with a written policy that complies with the Uniform Guidance could result in the procurement being disallowed. Questioned Costs: Not applicable. Context: For 100% of the procurement population (total of 3), management could not provide supporting documentation which was completed at the time of the procurement transaction. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Agency establish written procurement policies and internal controls around procurement. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address this issue.