Audit 391445

2025-001 (2024-002) – REPORTING Type of Finding: (F) significant Deficiency in Internal Control Over Compliance of Federal Awards, (G) Instance of Non-Compliance Related to Federal Awards Funding Agency: U.S. Department of Housing and Urban Development, passed through the City of Albuquerque Title: Community Development Block Grant AL #: 14.231 Award #:E-24-MC-35-0001 and E-24-MW-35-0001 Statement of Condition Heading Home does not appear to have controls in place for the review and timely submittance of the Project and Expenditure Reports that are required on a recurring basis. Context During our testing of internal controls over compliance, we noted the following: Two of eight reports tested were filed after their due date. Criteria Auditors are required to assess compliance with the reporting requirements for the major program tested. These requirements require a Project and Expenditure Report to be filed on a regular, recurring basis. The reporting frequency and deadlines vary by type of recipient and total allocation amount. Cause: Heading Home did not have procedures in place to ensure these required reports were submitted on time. Effect: Heading Home is not in compliance with Federal Award requirements as they were delinquent in turning in a number of required reports. Failure to submit reports in a timely manner could result in a misstatement going undetected and uncorrected. Recommendation: Ensure documentation is organized and readily available to fulfill Federal Award compliance. Additionally, ensure timing of filing the report is made a priority. Award Period: July 1, 2024 – June 30, 2026 Questioned Costs: None