FAC Explorer

Audit 359386

FY End
2024-12-31
Total Expended
$17.47M
Findings
12
Programs
27
Organization: City of Bloomington, Minnesota (MN)
Year: 2024 Accepted: 2025-06-20
Auditor: Redpath and Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565678 2024-001 Significant Deficiency - I
565679 2024-002 Significant Deficiency - L
565680 2024-003 Significant Deficiency - N
565681 2024-004 Significant Deficiency - E
565682 2024-002 Significant Deficiency - L
565683 2024-003 Significant Deficiency - N
1142120 2024-001 Significant Deficiency - I
1142121 2024-002 Significant Deficiency - L
1142122 2024-003 Significant Deficiency - N
1142123 2024-004 Significant Deficiency - E
1142124 2024-002 Significant Deficiency - L
1142125 2024-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $6.40M Yes 1
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $2.71M - 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $2.56M Yes 1
97.083 Staffing for Adequate Fire and Emergency Response (safer) $2.35M - 0
14.218 Community Development Block Grants/entitlement Grants $1.30M Yes 2
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $373,411 - 0
20.205 Highway Planning and Construction (federal-Aid Highway Program) $321,637 - 0
97.067 Homeland Security Grant Program (hsgp) $173,918 - 0
93.558 Temporary Assistance for Needy Families $170,044 - 0
93.994 Maternal and Child Health Services Block Grant to the States $152,776 - 0
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $128,537 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $109,080 - 0
16.575 Crime Victim Assistance $97,732 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $84,315 - 0
93.069 Public Health Emergency Preparedness $83,505 - 0
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $49,315 Yes 2
93.268 Covid-19 - Immunization Cooperative Agreements $43,810 - 0
95.001 High Intensity Drug Trafficking Areas Program $36,845 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $25,289 - 0
16.607 Bulletproof Vest Partnership Program $19,977 - 0
93.268 Immunization Cooperative Agreements $6,275 - 0
10.572 Wic Farmers' Market Nutrition Program (fmnp) $1,950 - 0
93.008 Medical Reserve Corps Small Grant Program $1,494 - 0
93.251 Early Hearing Detection and Intervention $1,125 - 0
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $1,020 - 0
97.091 Homeland Security Biowatch Program $900 - 0
93.314 Early Hearing Detection and Intervention Information System (ehdi-Is) Surveillance Program $150 - 0

Contacts

Name Title Type
TX4YD2YYVNW9 Amy Sevig Auditee
9525638704 Andy Hering Auditor
No contacts on file

Notes to SEFA

Title: Note 2 Accounting Policies: Note 1: The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. The information in this schedule is presented in accordance with both OMB Circular A- 133, Audits of States, Local Governments, and Nonprofit Organizations and the OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, when applicable. Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the City’s basic financial statements. De Minimis Rate Used: Y Rate Explanation: Note 3: The City has elected to use the de minimis indirect cost rate.. All pass-through entities use the same federal Assistance Lising Numbers (ALN) as the federal grantors to identify these grants, and have not assigned any additional identifying numbers.
Title: Note 4 Accounting Policies: Note 1: The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. The information in this schedule is presented in accordance with both OMB Circular A- 133, Audits of States, Local Governments, and Nonprofit Organizations and the OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, when applicable. Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the City’s basic financial statements. De Minimis Rate Used: Y Rate Explanation: Note 3: The City has elected to use the de minimis indirect cost rate.. The City did not pass any federal funds to subrecipients during 2024.
Title: Note 5 Accounting Policies: Note 1: The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. The information in this schedule is presented in accordance with both OMB Circular A- 133, Audits of States, Local Governments, and Nonprofit Organizations and the OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, when applicable. Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the City’s basic financial statements. De Minimis Rate Used: Y Rate Explanation: Note 3: The City has elected to use the de minimis indirect cost rate.. As part of its Section 8 Housing Choice Vouchers Program, the City administered portable vouchers totaling $2,296,954 and related administration fees totaling $145,887 as the receiving public housing authority (PHA) for various other initial PHAs throughout the United States. The City does not consider these amounts received from the initial PHAs to be subrecipient payments, and therefore are excluded from the Section 8 Housing Choice Vouchers Program amount on the previous page.
Title: Note 6 Accounting Policies: Note 1: The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. The information in this schedule is presented in accordance with both OMB Circular A- 133, Audits of States, Local Governments, and Nonprofit Organizations and the OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, when applicable. Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the City’s basic financial statements. De Minimis Rate Used: Y Rate Explanation: Note 3: The City has elected to use the de minimis indirect cost rate.. Unaudited Disclosure - The City received donated personal protective equipment (PPE) with an estimated value of less than $1,000. The City was unable to determine whether federal dollars were used to purcahse the donated PPE.

Finding Details

Finding 2024-001
2024-001: Internal Controls over Compliance for Procurement Suspension & Debarment U.S. DEPARTMENT OF TREASURY COVID-19 Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Criteria: Per 2 CFR sections 200.318 through 200.327, [entities] must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Further, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The City did not follow its Grant Standard Operating procedures for validating that a contractor was not suspended or debarred or otherwise excluded from participating in the transaction. Cause: The contract agreement was finalized without validation that all proper procurement procedures had been followed. Effect: By not following the City’s procedures in place, it puts the City at risk of doing business with companies who are suspended, debarred or otherwise excluded from doing business with the federal government. Questioned Costs: $0 Context: The auditor tested one procurement transaction entered into during 2024 using COVID- 19 Coronavirus State and Local Fiscal Recovery Funds. The City’s Grant Standard Operating procedures over suspension and debarment were not followed for this one procurement. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the City perform a separate individual check of contract files to ensure the City’s Grant Standard Operating procedures are followed and documented prior to entering into a contract agreement with covered contractors. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-002
2024-002: Internal Controls over Compliance for Reporting U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants (CDBG)/Entitlement Grants – ALN 14.218 Criteria: Reports submitted within the Integrated Disbursement and Information System (IDIS), including the PR26 CDBG Financial Summary Report and the PR29 CDBG Cash on Hand Quarterly Report, should be accurate, be supported by adequate documentation, and be submitted timely. Condition: Adequate internal controls to ensure the accuracy of reporting were not in place over the PR26 CDBG Financial Summary Report and the PR29 CDBG Cash on Hand Quarterly Report. Errors were noted in the PR29 CDBG Cash on Hand Quarterly Report for the last two quarters of 2024 due to recording program income activity within the grant funds. Cause: Turnover within the HRA during 2024 attributed to this condition. Effect: There is a risk that data submitted is inaccurate. For the HRA's PR29 CDBG Cash on Hand Quarterly Report, program income received and disbursed during 2024 was understated and grant funds activity was overstated by the same amount. Questioned Costs: $0 Context: These IDIS system-generated reports are based on the HRA’s data inputs into the IDIS system throughout the year. There are currently no additional procedures in place to validate the accuracy of this data within these reports and to make corrections if errors are noted. Additionally, we noted there are system limitations in IDIS, causing certain system-generated errors which the HRA cannot fix. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the HRA have a separate individual with appropriate knowledge and experience review and approve the IDIS reports, including a review of reconciliations from these reports to supporting financial data. Additionally, we recommend HRA staff work with the Department of Housing and Urban Development to resolve the systemgenerated errors in these reports. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-003
2024-003: Internal Controls over Compliance for Special Tests and Provisions (Environmental Reviews) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants (CDBG)/Entitlement Grants – ALN 14.218 Criteria: Environmental reviews should be performed on CDBG projects as required by 24 CFR section 58. Condition: Environmental reviews were incomplete or missing from a sample of projects tested for compliance. Cause: Turnover within the HRA during 2024 attributed to this condition. Existing procedures in place to help ensure program compliance were not consistently followed by staff. Effect: Without proper environmental reviews, there is a risk of potential negative environmental impacts resulting from a project funded by CDBG funds or noncompliance with the National Environmental Policy Act or other applicable federal, state, and local laws and regulations. Questioned Costs: $0 Context: A sample of four out of 40 projects with activity during 2024 found two of the four projects tested lacked supporting documentation to prove that environmental reviews were completed. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the HRA continue to strengthen its controls over compliance within the CDBG program, including having the HRA Administrator or HRA Assistant Administrator verify program checklists are completed with proper supporting documentation for all programs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-004
2024-004: Internal Controls over Compliance for Eligibility U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Section 8 Housing Choice Vouchers – ALN 14.871 Criteria: Adequate internal controls should exist to ensure an entity meets program compliance requirements over program eligibility. The HRA’s internal controls over eligibility include staff completing tenant checklists for eligibility determinations with a separate program specialist responsible for reviewing and signing off on the checklists. Condition: The HRA did not complete or maintain tenant file checklists as required by its internal controls when performing tenant eligibility procedures during 2024. Cause: Turnover within the HRA during 2024 attributed to this condition. Existing procedures in place to help ensure program compliance were not consistently followed by staff. Effect: There is a risk that errors in tenant eligibility could have occurred during 2024 due to not following the existing procedures in place. Questioned Costs: $0 Context: Our sample of tenant files supporting 25 housing choice vouchers issued from a population of approximately 9,800 individual housing choice vouchers noted that no tenant file checklists were maintained in the files for activity occurring during 2024. However, no instances of noncompliance with eligibility were noted. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the HRA create monitoring controls to ensure its policies relating to tenant eligibility are being followed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-002
2024-002: Internal Controls over Compliance for Reporting U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants (CDBG)/Entitlement Grants – ALN 14.218 Criteria: Reports submitted within the Integrated Disbursement and Information System (IDIS), including the PR26 CDBG Financial Summary Report and the PR29 CDBG Cash on Hand Quarterly Report, should be accurate, be supported by adequate documentation, and be submitted timely. Condition: Adequate internal controls to ensure the accuracy of reporting were not in place over the PR26 CDBG Financial Summary Report and the PR29 CDBG Cash on Hand Quarterly Report. Errors were noted in the PR29 CDBG Cash on Hand Quarterly Report for the last two quarters of 2024 due to recording program income activity within the grant funds. Cause: Turnover within the HRA during 2024 attributed to this condition. Effect: There is a risk that data submitted is inaccurate. For the HRA's PR29 CDBG Cash on Hand Quarterly Report, program income received and disbursed during 2024 was understated and grant funds activity was overstated by the same amount. Questioned Costs: $0 Context: These IDIS system-generated reports are based on the HRA’s data inputs into the IDIS system throughout the year. There are currently no additional procedures in place to validate the accuracy of this data within these reports and to make corrections if errors are noted. Additionally, we noted there are system limitations in IDIS, causing certain system-generated errors which the HRA cannot fix. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the HRA have a separate individual with appropriate knowledge and experience review and approve the IDIS reports, including a review of reconciliations from these reports to supporting financial data. Additionally, we recommend HRA staff work with the Department of Housing and Urban Development to resolve the systemgenerated errors in these reports. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-003
2024-003: Internal Controls over Compliance for Special Tests and Provisions (Environmental Reviews) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants (CDBG)/Entitlement Grants – ALN 14.218 Criteria: Environmental reviews should be performed on CDBG projects as required by 24 CFR section 58. Condition: Environmental reviews were incomplete or missing from a sample of projects tested for compliance. Cause: Turnover within the HRA during 2024 attributed to this condition. Existing procedures in place to help ensure program compliance were not consistently followed by staff. Effect: Without proper environmental reviews, there is a risk of potential negative environmental impacts resulting from a project funded by CDBG funds or noncompliance with the National Environmental Policy Act or other applicable federal, state, and local laws and regulations. Questioned Costs: $0 Context: A sample of four out of 40 projects with activity during 2024 found two of the four projects tested lacked supporting documentation to prove that environmental reviews were completed. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the HRA continue to strengthen its controls over compliance within the CDBG program, including having the HRA Administrator or HRA Assistant Administrator verify program checklists are completed with proper supporting documentation for all programs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-001
2024-001: Internal Controls over Compliance for Procurement Suspension & Debarment U.S. DEPARTMENT OF TREASURY COVID-19 Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 Criteria: Per 2 CFR sections 200.318 through 200.327, [entities] must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Further, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The City did not follow its Grant Standard Operating procedures for validating that a contractor was not suspended or debarred or otherwise excluded from participating in the transaction. Cause: The contract agreement was finalized without validation that all proper procurement procedures had been followed. Effect: By not following the City’s procedures in place, it puts the City at risk of doing business with companies who are suspended, debarred or otherwise excluded from doing business with the federal government. Questioned Costs: $0 Context: The auditor tested one procurement transaction entered into during 2024 using COVID- 19 Coronavirus State and Local Fiscal Recovery Funds. The City’s Grant Standard Operating procedures over suspension and debarment were not followed for this one procurement. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the City perform a separate individual check of contract files to ensure the City’s Grant Standard Operating procedures are followed and documented prior to entering into a contract agreement with covered contractors. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-002
2024-002: Internal Controls over Compliance for Reporting U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants (CDBG)/Entitlement Grants – ALN 14.218 Criteria: Reports submitted within the Integrated Disbursement and Information System (IDIS), including the PR26 CDBG Financial Summary Report and the PR29 CDBG Cash on Hand Quarterly Report, should be accurate, be supported by adequate documentation, and be submitted timely. Condition: Adequate internal controls to ensure the accuracy of reporting were not in place over the PR26 CDBG Financial Summary Report and the PR29 CDBG Cash on Hand Quarterly Report. Errors were noted in the PR29 CDBG Cash on Hand Quarterly Report for the last two quarters of 2024 due to recording program income activity within the grant funds. Cause: Turnover within the HRA during 2024 attributed to this condition. Effect: There is a risk that data submitted is inaccurate. For the HRA's PR29 CDBG Cash on Hand Quarterly Report, program income received and disbursed during 2024 was understated and grant funds activity was overstated by the same amount. Questioned Costs: $0 Context: These IDIS system-generated reports are based on the HRA’s data inputs into the IDIS system throughout the year. There are currently no additional procedures in place to validate the accuracy of this data within these reports and to make corrections if errors are noted. Additionally, we noted there are system limitations in IDIS, causing certain system-generated errors which the HRA cannot fix. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the HRA have a separate individual with appropriate knowledge and experience review and approve the IDIS reports, including a review of reconciliations from these reports to supporting financial data. Additionally, we recommend HRA staff work with the Department of Housing and Urban Development to resolve the systemgenerated errors in these reports. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-003
2024-003: Internal Controls over Compliance for Special Tests and Provisions (Environmental Reviews) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants (CDBG)/Entitlement Grants – ALN 14.218 Criteria: Environmental reviews should be performed on CDBG projects as required by 24 CFR section 58. Condition: Environmental reviews were incomplete or missing from a sample of projects tested for compliance. Cause: Turnover within the HRA during 2024 attributed to this condition. Existing procedures in place to help ensure program compliance were not consistently followed by staff. Effect: Without proper environmental reviews, there is a risk of potential negative environmental impacts resulting from a project funded by CDBG funds or noncompliance with the National Environmental Policy Act or other applicable federal, state, and local laws and regulations. Questioned Costs: $0 Context: A sample of four out of 40 projects with activity during 2024 found two of the four projects tested lacked supporting documentation to prove that environmental reviews were completed. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the HRA continue to strengthen its controls over compliance within the CDBG program, including having the HRA Administrator or HRA Assistant Administrator verify program checklists are completed with proper supporting documentation for all programs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-004
2024-004: Internal Controls over Compliance for Eligibility U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Section 8 Housing Choice Vouchers – ALN 14.871 Criteria: Adequate internal controls should exist to ensure an entity meets program compliance requirements over program eligibility. The HRA’s internal controls over eligibility include staff completing tenant checklists for eligibility determinations with a separate program specialist responsible for reviewing and signing off on the checklists. Condition: The HRA did not complete or maintain tenant file checklists as required by its internal controls when performing tenant eligibility procedures during 2024. Cause: Turnover within the HRA during 2024 attributed to this condition. Existing procedures in place to help ensure program compliance were not consistently followed by staff. Effect: There is a risk that errors in tenant eligibility could have occurred during 2024 due to not following the existing procedures in place. Questioned Costs: $0 Context: Our sample of tenant files supporting 25 housing choice vouchers issued from a population of approximately 9,800 individual housing choice vouchers noted that no tenant file checklists were maintained in the files for activity occurring during 2024. However, no instances of noncompliance with eligibility were noted. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the HRA create monitoring controls to ensure its policies relating to tenant eligibility are being followed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-002
2024-002: Internal Controls over Compliance for Reporting U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants (CDBG)/Entitlement Grants – ALN 14.218 Criteria: Reports submitted within the Integrated Disbursement and Information System (IDIS), including the PR26 CDBG Financial Summary Report and the PR29 CDBG Cash on Hand Quarterly Report, should be accurate, be supported by adequate documentation, and be submitted timely. Condition: Adequate internal controls to ensure the accuracy of reporting were not in place over the PR26 CDBG Financial Summary Report and the PR29 CDBG Cash on Hand Quarterly Report. Errors were noted in the PR29 CDBG Cash on Hand Quarterly Report for the last two quarters of 2024 due to recording program income activity within the grant funds. Cause: Turnover within the HRA during 2024 attributed to this condition. Effect: There is a risk that data submitted is inaccurate. For the HRA's PR29 CDBG Cash on Hand Quarterly Report, program income received and disbursed during 2024 was understated and grant funds activity was overstated by the same amount. Questioned Costs: $0 Context: These IDIS system-generated reports are based on the HRA’s data inputs into the IDIS system throughout the year. There are currently no additional procedures in place to validate the accuracy of this data within these reports and to make corrections if errors are noted. Additionally, we noted there are system limitations in IDIS, causing certain system-generated errors which the HRA cannot fix. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the HRA have a separate individual with appropriate knowledge and experience review and approve the IDIS reports, including a review of reconciliations from these reports to supporting financial data. Additionally, we recommend HRA staff work with the Department of Housing and Urban Development to resolve the systemgenerated errors in these reports. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.
Finding 2024-003
2024-003: Internal Controls over Compliance for Special Tests and Provisions (Environmental Reviews) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Development Block Grants (CDBG)/Entitlement Grants – ALN 14.218 Criteria: Environmental reviews should be performed on CDBG projects as required by 24 CFR section 58. Condition: Environmental reviews were incomplete or missing from a sample of projects tested for compliance. Cause: Turnover within the HRA during 2024 attributed to this condition. Existing procedures in place to help ensure program compliance were not consistently followed by staff. Effect: Without proper environmental reviews, there is a risk of potential negative environmental impacts resulting from a project funded by CDBG funds or noncompliance with the National Environmental Policy Act or other applicable federal, state, and local laws and regulations. Questioned Costs: $0 Context: A sample of four out of 40 projects with activity during 2024 found two of the four projects tested lacked supporting documentation to prove that environmental reviews were completed. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the HRA continue to strengthen its controls over compliance within the CDBG program, including having the HRA Administrator or HRA Assistant Administrator verify program checklists are completed with proper supporting documentation for all programs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are taken on the deficiency noted. Additional details can be found in the City of Bloomington’s Corrective Action Plan.