Finding 1080639 (2024-001)

2024-001 Department of the Treasury Federal Financial Assistance Listing #21.027 Coronavirus State and Local Relief Funds, Workforce Housing Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Criteria: Management should have an internal control system in place designed to provide for the retention and review of required documents as defined in the grant agreement and compliance supplement. Condition: In our testing of 3 subrecipients for the Workforce Housing program, there was one instance where the required documentation indicating the approved subrecipient is not on the debarred listing was not retained. Cause: The documentation was filed but not retained. Effect: All documents are not retained. Questioned Costs: None Context/Sampling: A nonstatistical sample of 3 out of a population 8 subrecipients were selected. Repeat Finding from Prior Years: No Recommendation: Management and those charged with governance should analyze the current control system and make the decision whether to accept the degree of risk associated with this condition around document retention and review or implement enhanced controls. Views of Responsible Officials: Management agrees with the finding.