Audit 413418

Finding 2025-001 Reporting ALN 14.218 Community Development Block Grant – Entitlement Grant/Special Purpose Cluster Criteria: The Community Development Block Grant – Entitlement Grant/Special Purpose Cluster is required to report PR29 Cash on Hand Quarterly Reports within the Integrated Disbursement and Information System (IDIS) to ensure the grantee is not carrying a cash on hand balance for the grant from funds from quarter to quarter and that grant funds are not drawn if program income funds are available. Reports are also required to be submitted timely. Condition: For 1 of the 4 Quarterly reports selected for testing, the key line item 1, Cash on hand at the beginning of the reporting period was incorrectly reported Cash on hand when compared to supporting documentation. In addition, 2 of the 4 Quarterly reports were not submitted timely. Cause: The Corporation’s internal control procedures to ensure compliance with Reporting requirements were not operating as designed. The organization experienced turnover during the year. Effect: The Corporation was not in compliance with program Reporting requirements and internal controls were not operating effectively. Questioned Costs: None known. Recommendation: The Authority should ensure the PR29 Cash on Hand Reports contain accurate information and submitted timely. Management’s Response: Management agrees with the finding and is implementing procedures to correct it. Due to a large number of turnover throughout the last year and a half, internal controls procedures did not operate as designed and led to this finding. The Corporation’s staffing has since stabilized, and internal control procedures have been restored to ensure compliance with the Reporting requirements.