Audit 380751

U.S. Department of Treasury Federal Program Name: Emergency Rental Assistance Program Assistance Listing Number 21.023 Significant Deficiency – Finding 2025-001 Criteria: In accordance with Section 200.303 of the Uniform Guidance, a non-federal entity must establish andmaintain effective internal control over the federal award that provides reasonable assurance that the non-federalentity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. Condition: The ERA Compliance Report is required to be submitted on a quarterly basis by the 15th day following the end of the quarter. As a result of audit procedures, it was noted that the City had no formal control process, or documentary evidence that controls are performed, to ensure that reports are submitted accurately and timely. Context: Two quarterly reports were selected for testing. Although the reports were submitted timely, there was no documentary evidence that the reports were reviewed prior to submissions. Questioned Costs: No questioned costs reported. Effect: The lack of formally established controls over reporting could result in missed reporting requirements. Cause: Management has been relying on informal procedures. Recommendation: We recommend management implement a formal review policy in place over the preparation and review process for the required reports to be submitted to the agency. Views of Responsible Officials: Management agrees with the finding and is implementing procedures to correct this, which is further discussed in the corrective action plan.