Finding Text
PROGRAM INCOME - MATERIAL WEAKNESS
Federal Program
Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks
HOME Investment Partnership Program ALN 14.239; passed through the County of Berks
Criteria
Per 2 CFR section 200.307(a), program income must be expended prior to requesting Federal Funds. The Authority receives program income under the above grants and must report the receipt and application of program income within the United States Department of Housing and Urban Development Integrated Disbursement and Information System (IDIS).
Condition/Cause
The Authority did not properly report program income in IDIS during the year, and therefore could not support that program income was applied prior to drawing down entitlement funding. In some instances, program income received was not reported in IDIS, and one receipt was entered into IDIS twice.
When received, program income is reported in a separate general ledger account in the financial reporting software. The Fiscal Officer then enters the program income into IDIS on a regular basis. No control exists to ensure completeness or accuracy of information entered into IDIS related to program income.
Effect
The Authority cannot provide documentation of compliance with the program income requirements of the programs during 2022.
Questioned Costs
HOME Investment Partnership Program - $64,128
Community Development Block Grant/Entitlement Grant - Less than $25,000
Context
For the HOME Investment Partnership Program, a receipt of $10,000 was entered twice into IDIS. Receipts of $74,128.05 were identified as program income on the general ledger but not entered into IDIS. For the Community Development Block Grant Program, program income identified on the general ledger was $24,221 higher than program income reported in IDIS. The difference could not be identified by management.
Repeat Finding
No.
Recommendation
We recommend the Authority develop a procedure/internal control to ensure program income is entered accurately and completely within IDIS. This will allow for documentation to support that program income is being utilized prior to drawing down entitlement funding. This will also ensure compliance with reporting requirements for reports generated within IDIS on an annual basis.
Management Response
See corrective action plan included in this report package.