Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: 14.218 Entitlement Grants Cluster: Community Development Block
Grants/Entitlement Grants
Identification Number: B-15-MC-42-0018; B-16-MC-42-0018; B-17-MC-42-0018; B-18-MC-42-0018; B-19-
MC-42-0018
Requirement: Activities Allowed or Unallowed; Allowable Costs/Cost Principles; Period of
Performance; Reporting; Special Tests and Provisions
Type of Finding: Material weakness in internal control over major program; Noncompliance
Criteria: Section 2 CFR 200.302 of the Uniform Guidance states that the financial management system must
provide for identification, in its accounts, of all federal awards received and expended and the federal programs
under which they were received. federal program and federal award identification must include, as applicable,
the AL title and number, federal award identification and year, name of the federal agency, and the name of the
pass-through entity, if any.
Condition: The City does not have policies and procedures in place to accurately and completely account for
federally funded activities separately from non-federally funded activities in their financial management system.
Cause: Inaccurate accounting of grant expenditures in the City’s financial management system.
Effect: The City did not consistently segregate and identify federal grant expenditures separately from their nonfederal
expenditures.
Questioned costs: There are no questioned costs associated with this finding.
Context: The City needs to create and implement a policy to accurately account for federally funded activities
separately from non-federally funded activities in their financial management system.
Recommendation: We recommend the City implement procedures to ensure consistent and accurate accounting
for federal grant expenditures in accordance with section 2 CFR 200.302 of the Uniform Guidance.