Finding Text
Agency:
U.S. Department of Housing and Urban Development (HUD)
Federal Program:
Community Development Block Grant – Disaster Recovery (CDBG-DR)
Compliance Requirement:
Monitoring
Category:
Deficiency (D)
Criteria:
Exhibit A to the Vacant Property Assessment Subrecipient Agreement – Scope of Work, Clause No. 4.2.10 indicates that the Organization must monitor and control team performance in accordance with established performance goals, regulatory compliance, and quality standards.
Condition:
The Organization did not prepare minutes for its meetings during the year under audit, and through the date the financial statements were available for issuance.
Cause of Condition:
The Organization discontinued the preparation of minutes prior to year under audit since it is not required by the Organization’s constitution.
Effect of Condition:
The risk of not following up on operational decisions to achieve performance goal increases. Management may overlook issues for which decisions have been already made.
Questioned Costs:
None
Recommendation:
The Organization should prepare minutes to document all its official meetings. Accurate minutes are crucial for documenting key discussions and course of actions, ensuring transparency, and providing a record for external reviews and legal matters.
Management’s Response:
The Organization documents decisions and the Board votes through corporate resolutions. Nevertheless, to better document the Board’s monitoring and control of team performance, the Organization intends to resume preparing minutes for Board meetings going forward. Meetings are to be held at least once every four months, according to the Organization’s internal regulations.