Finding Text
U.S. Department of Housing and Urban Development
Pass-through Entity: North Carolina Department of Health and Human Services, Division of Aging and Adult Services and City of Charlotte, North Carolina
Program Name: Emergency Solutions Grant
Federal Assistance Listing Number: 14.231
U.S. Department of Treasury
Pass-through Entity: Mecklenburg County, North Carolina
Program Name: Coronavirus State and Local Fiscal Recovery Funds
Federal Assistance Listing Number: 21.027
Significant Deficiency and Nonmaterial Noncompliance – Reporting
Finding 2024-002 – Repeat Finding
Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition: For all ten (10) reports tested, the Organization did not have formal documentation that the report was reviewed by a separate individual from the one that prepared it prior to submission.
Additionally, for five (5) out of ten (10) reports tested, the Organization did not submit the required report per the contract.
Questioned Costs: None noted.
Effect: Without the documentation being retained, the Organization cannot demonstrate they have appropriate controls in place to ensure accuracy of the information reported. Without submitting the required reports, the Organization could be considered noncompliant with the grantor.
Cause: The Organization does not have a formal policy in place to document approval of reports and ensure proper submission.
Recommendation: We recommend the Organization implement a policy for formal documentation of review of required reports prior to submission.
Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.