Finding Text
Finding 2023-003
Assistance Listing Number: 14.228
Program Title: Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii
Federal Grantor: U.S. Department of Housing and Urban Development
Pass-Through Agency: Wisconsin Department of Adminstration
Award Number / Year: 20-27 / 2023
Repeat Finding: 2022-003
Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations and the terms and conditions of the Federal award.
Condition/Context: One of the two reports selected for testing were not independently reviewed before submission. The sample is not statistically valid.
Cause: The City did not have internal control procedures in place requiring an independent person to review all reports before submission to ensure accuracy and timeliness.
Questioned Costs: None noted.
Effect: Reports submitted could contain errors.
Recommendation: The City should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports before submissions to federal agencies
Management's Response: Upon start of employment of a new City Administrator/Treasurer on October 9, 2023, that position employee will be reviewing such reports and financial documents on a regular basis as part of his job duties.