Finding Text
2024-002: Internal Controls over Compliance for Reporting
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Community Development Block Grants (CDBG)/Entitlement Grants – ALN 14.218
Criteria: Reports submitted within the Integrated Disbursement and Information System (IDIS),
including the PR26 CDBG Financial Summary Report and the PR29 CDBG Cash on Hand
Quarterly Report, should be accurate, be supported by adequate documentation, and be submitted
timely.
Condition: Adequate internal controls to ensure the accuracy of reporting were not in place over
the PR26 CDBG Financial Summary Report and the PR29 CDBG Cash on Hand Quarterly
Report. Errors were noted in the PR29 CDBG Cash on Hand Quarterly Report for the last two
quarters of 2024 due to recording program income activity within the grant funds.
Cause: Turnover within the HRA during 2024 attributed to this condition.
Effect: There is a risk that data submitted is inaccurate. For the HRA's PR29 CDBG Cash on
Hand Quarterly Report, program income received and disbursed during 2024 was understated
and grant funds activity was overstated by the same amount.
Questioned Costs: $0
Context: These IDIS system-generated reports are based on the HRA’s data inputs into the IDIS
system throughout the year. There are currently no additional procedures in place to validate the
accuracy of this data within these reports and to make corrections if errors are noted.
Additionally, we noted there are system limitations in IDIS, causing certain system-generated
errors which the HRA cannot fix.
Identification of Repeat Finding: Not a repeat finding.
Recommendation: We recommend the HRA have a separate individual with appropriate
knowledge and experience review and approve the IDIS reports, including a review of
reconciliations from these reports to supporting financial data. Additionally, we recommend
HRA staff work with the Department of Housing and Urban Development to resolve the systemgenerated
errors in these reports.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with this
finding and is in the process of developing internal controls to ensure timely and appropriate
actions are taken on the deficiency noted. Additional details can be found in the City of
Bloomington’s Corrective Action Plan.