Finding Text
Finding 2022 – 005: Reporting (Compliance; Internal Controls Over Compliance)
Material Weakness – 93.U01 Title V
Criteria: Per Uniform Guidance 2 CFR § 200.302 and 2 CFR § 200.333, entities must maintain records that adequately identify the source and application of federal funds and retain documentation to support compliance with program requirements.
Condition: The Organization was unable to provide any of the required reports for the Title V program, including the financial report, activity narrative, third-party income report, GPRA/GPRAMA, urban data standards, and property inventory. Without these reports, we were unable to perform the necessary audit procedures to assess compliance with federal requirements.
Questioned Costs: None.
Cause: The Organization lacked sufficient record retention policies and failed to maintain the required documentation needed for reporting compliance.
Effect: The Organization was unable to produce key reports necessary for compliance with grant and audit requirements.
Recommendation: We recommend that the Organization implement stronger documentation and recordkeeping procedures to ensure compliance with federal reporting requirements. This should include:
• ensuring that all required reports (e.g., financial reports, activity narratives, third-party income reports) are generated and retained according to Uniform Guidance,
• establishing a process for regular internal reviews to verify the completeness and accuracy of required federal reports, and
• providing staff with training on record retention and reporting obligations to ensure timely and accurate submissions.
Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.