Finding 1106213 (2024-002)

Federal Program: Department of Housing and Urban Development; Community Development Block Grants (CDBG); Federal Assistance Listing 14.228 Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance) and grant agreements require all nonfederal entities to submit semi-annual reports within 10 days after the six-month period end. Condition: The County did not submit the semi-annual status reports for the December 31, 2023 period end and June 30, 2024 period end by the due date required in the Uniform Guidance and grant agreements. Cause: The semi-annual status reports were filed late due to several financial reports needing to be prepared at once for the program and due to a delay in obtaining the appropriate signature for the reports. Effect: The County is not in compliance with the reporting requirements as stipulated in the Uniform Guidance and grant agreements. Context: During the course of our single audit testing procedures, we noted that one semi-annual status report for the December 31, 2023 period end was filed late by the County by one day. In addition, two semi-annual status reports for the June 30, 2024 period end were filed late by the County by eight days and one was filed late by one day. Auditors’ Recommendation: We recommend management communicate effectively with all staff to emphasize the importance of promptly submitting financial reports to applicable federal agencies in a timely manner. This will ensure that the required financial reports are filed timely as stipulated by the Uniform Guidance and grant agreements. Views of Responsible Officials and Planned Corrective Actions: Management has discussed the finding with the appropriate staff and has emphasized the importance of promptly submitting reports on time. Staff will develop a system to ensure the necessary documents and signatures will be completed in sufficient time to submit the required reports. Identification of a Repeat Finding: This finding was not a finding in FY 23.