Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grants/Entitlement Grants
Assistance Listing Number: 14.218
Federal Award Identification Number and Year: B-19-MC-55-0017, 2019; B-20-MC-55-0017, 2020; B-
20-MW-55-0017, 2020; B-21-MC-55-0017, 2021; B-22MC-55-0017, 2022; B-23MC-55-0017, 2023
Award Period: 1/1/2019 – 9/1/2030
Compliance Requirements: Reporting
Type of Finding:
* Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires the City to implement and maintain a system of internal controls over federal grants.
Condition: The City has not formally designated an individual to review and approve the reports nor clarify how the review and approval was to be documented, to ensure the compliance requirements are completed in accordance with the grant requirements.
Questioned costs: None
Context: The City did not have procedures requiring documentation of the review and approval by an individual other than the preparer of all required annual reports.
Cause: The City had not performed a periodic evaluation of the internal controls surrounding the grant program to identify the lack of documentation indicating a review of the annual reporting forms had been performed.
Effect: Without documenting the review, there is a risk that the reports were not reviewed prior to submission by the City and could contain an error.
Repeat Finding: Repeat of Finding 2022-001
Recommendation: We recommend the City review the various requirements of the CDBG grant program and identify individuals who can act as a reviewer and approver of the reporting process. We also recommend the City document these procedures and internal controls as required by Uniform Guidance.
Views of responsible officials: There is no disagreement with the audit finding.