Finding Text
Criteria: Under 2 CFR 200.303, the City is required to establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the City is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition: Our audit procedures found that the City submitted drawdown requests to HUD for certain expenditures twice totaling $31,296.
Cause: The City’s Community Development and Finance offices have experienced turnover in key positions responsible for reconciling and requesting the drawdowns during the fiscal year 2023. Training was needed for program and finance employees to fully understand the drawdown process.
Effect: The City received excess funds totaling $31,296 for duplicate drawdown requests.
Recommendation: We recommend that the City return the duplicate drawn funds to HUD. We recommend all drawdown requests are completed by appropriately trained employees and that all drawdowns are reviewed and approved by an appropriately personnel prior to submission to HUD.
Views of Responsible Officials and Planned Corrective Action: The City agrees with this finding. The City will work with HUD to repay the duplicated funds and implement additional review and approval procedures for drawdown requests.