Audit 397324

Department of Housing and Urban Development - Direct Project - Community Development Block Grant- ALN 14.218- Program Year 2025 (B-20-UC-11-0018 FY 2021, B-20-UW-12-0018 FY 2020, B-22-UC-12-0018 FY 2022, B23-UC-12-0018 FY 2023, B-24-UC-12-0018 FY 2024, FR-6512-N-01 FY 2024) Criteria — 2 CFR section 200.303 – Internal Controls of the Uniform Guidance states that the non‐federal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition — There was no evidence of the controls in place to review and approve reports prior to submission. The lack of internal control is a systemic issue over reporting. Cause/Effect—There is no evidence of the internal control requiring review and approval prior to submission of the cash on hand quarterly report and the FFATA reports prior to submission. If the internal controls are not in place the reports might not be accurately and timely filed, which could cause a delay in payment or loss of funding. Questioned Costs– None noted. Reported finding is for noncompliance in the reporting compliance requirement that does not affect the amount expended or received from the Federal award. Auditor’s Recommendation – Develop an internal control process with evidence of a review of reports prior to submission. CRI also recommends that the County develop a process to track all grant reports required by ALN#/CSFA# and by contract. This system would provide a repository of all the required reporting which the county could use to verify reports are filed timely and accurately. Management Response – See Corrective Action Plan Letter.