Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Emergency Solutions Grants Program Assistance Listing Number: 14.231 Federal Award Identification Number and Year: CA005/CA007 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: Special Tests and Provisions-Subrecipient Payments The recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. This requirement also applies to each subrecipient that is a unit of general-purpose local government (24 CFR section 576.203). Condition: The Agency did not have adequate internal controls designed to ensure that subrecipient payments are paid in accordance with compliance requirements. Questioned Costs: N/A Context: In 2023, 10 out of 29 payments to subrecipients were not done within 30 days as required by the grant. A follow-up selection was made in 2024 which also was not paid on time. Cause: The Agency did not sufficiently monitor controls to ensure compliance with program requirements over payments to subrecipients. Effect: The Agency is not in compliance with rules covering payments to subrecipients and the required 30 days. Repeat Finding: Yes, (2023-007) Recommendation: We recommend that management ensure that internal controls are in place to ensure subrecipient payments are paid timely and within program requirements. Views of Responsible Officials: There is no disagreement with the audit finding.