Finding 1102227 (2024-002)

Finding 2024-002 - Reporting - Significant Deficiency Name of Federal Agency: Department of the Treasury and Department of Health and Human Services Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds and Certified Community Behavioral Health Clinic Expansion Grants Assistance Listing Number: 21.027 and 93.696 Federal Award Identification Number and Year: HS 2024-105, HS 2024-209, HS 2024-202 and 1H79SM086628-01. Program year is 2024. Name of Pass-through Entity (if applicable): Department of Housing and Community Development Criteria: In accordance with §200.328, Financial reporting, the recipient or subrecipient must submit financial reports as required by the Federal award. Additionally, in accordance with §200.329, Monitoring and reporting program performance, the recipient or subrecipient must submit performance reports as required by the Federal award. Condition: The Agency did not have internal controls over its reporting compliance requirement under Uniform Guidance. Cause: The Agency did not have internal controls in place to ensure that reporting requirements were prepared, reviewed and submitted on a timely basis. Effect or Potential Effect: Failure to perform reporting procedures in accordance with the Uniform Guidance could result in the reports being inaccurate or not filed on a timely basis. Questioned Costs: Not applicable. Context: For 100% of reports selected (total of 4), management did not provide adequate supporting documentation of the controls in place for the preparation, review and timely submission of the reports. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Agency establish internal controls over its reporting compliance reporting requirements to ensure that the Agency is in compliance with Uniform Guidance. Views of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to address this issue.