FAC Explorer

Finding 1156802 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369187
Organization: National Urban League, Inc. (NY)
Auditor: Mitchell Titus LLP

AI Summary

  • Core Issue: NUL failed to submit required FY 2022 and FY 2024 HUD CPF Grant financial and progress reports on time.
  • Impacted Requirements: Noncompliance with semi-annual reporting obligations as outlined in the grant agreements with HUD.
  • Recommended Follow-Up: NUL should submit the overdue reports once the DRGR system is operational and create a financial reporting calendar to track all federal requirements.

Finding Text

Finding: 2024-001 Reporting Finding Type: Noncompliance, Significant Deficiency Identification of the Federal Program(s): U.S. Department of Housing and Urban Development: Federal Assistance Listing #14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Criteria: Per Article VI. Program-Specific Reporting Requirements of the FY 2022 Community Project Funding (CPF) Grant Agreement No. B-22-CP-NY-0711 and the FY 2024 CPF Grant Agreement No. B-24-CP-NY-1727 with the U.S. Department of Housing and Urban Development (HUD): “The grantee must submit a performance report in the Disaster Recovery Grant Reporting system (DRGR) on a semi-annual basis and must include a completed Federal financial report as an attachment to each performance report in DRGR. Performance reports shall consist of a narrative of work accomplished during the reporting period. During the period of performance, the grantee must submit these reports in the DRGR no later than 30 calendar days after the end of the six-month reporting period. The first of these reporting periods begins on the first of January or June (whichever occurs first) after the date this Grant Agreement is signed by HUD.” Per the DRGR, the FY 2022 HUD CPF Grant financial reports and progress reports for January 1, 2023 through June 30, 2023, July 1, 2023 through December 31, 2023, January 1, 2024 through June 30, 2024, and July 1, 2024 through December 31, 2024 were due on July 30, 2023, January 30, 2024, July 30, 2024, and January 30, 2025, respectively. Per the DRGR, the FY 2024 HUD CPF Grant financial reports and progress reports for July 1, 2024 through December 31, 2024 were due on January 30, 2025. Condition: NUL did not complete and submit the FY 2022 and FY 2024 HUD CPF Grant financial and progress reports by the required due dates. Per our review of correspondence between NUL and HUD, it does not appear that NUL can file the reports with HUD through its DRGR system at this time. Cause: It appeared that staff turnover and unfamiliarity with reporting requirements of the new grant contributed to the condition noted above. Effect: NUL was not in compliance with the reporting requirements noted above. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: We recommend that NUL submit the required FY 2022 and FY 2024 HUD CPF Grant financial and progress reports when HUD’s DRGR system is able to support the submissions. Additionally, all financial reporting requirements should be identified at contract signing. NUL should consider developing a financial reporting calendar that identifies the nature and timing of all federal reporting requirements to assist with meeting its federal financial reporting obligations. View of Responsible Officials: See management’s corrective action plan.

Corrective Action Plan

Audit Finding Reference: 2024-001 (Reporting) Planned Corrective Action: NUL acknowledges the reporting requirements outlined in Article VI of the FY22 and FY24 CPF Grant Agreements with HUD. We respectfully note, however, that while we are fully aware of these reporting requirements, we were unable to submit the required reports because the Disaster Recovery Grant Reporting (DRGR) system was not available for submissions during the relevant periods. As such, even if we had attempted to file, submission could not have occurred due to the system’s unavailability. We were in contact with the administrators of HUD on a regular basis during the reporting period. Both HUD and NUL were fully aware of the DRGR system short falls. We emphasize that NUL maintains a strong record of timely and accurate federal reporting and does not typically experience issues with missed or late submissions. This instance is an isolated occurrence and is not reflective of our overall compliance practices. Once the DRGR system becomes available, NUL will promptly submit all required FY22 and FY24 reports to ensure compliance. To further strengthen our processes, NUL is committed to implementing a financial reporting calendar to supplement our existing internal controls and ensure continued timely compliance with all reporting obligations. This reporting calendar will be disseminated to all NUL departments that work with and are responsible for federal grant reporting.

Categories

Reporting HUD Housing Programs Period of Performance Significant Deficiency

Other Findings in this Audit

  • 1156803 2024-002
    Material Weakness Repeat
  • 1156804 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.235 Senior Community Service Employment Program $13.89M
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $6.43M
93.185 Covid-19 - Immunization Research, Demonstration, Public Information and Education Training and Clinical Skills Improvement Projects $4.45M
17.270 Reentry Employment Opportunities $3.03M
16.726 Juvenile Mentoring Program $2.15M
17.261 Workforce Data Quality Initiative (wdqi) $1.80M
14.169 Housing Counseling Assistance Program $1.33M
99.U19 Housing Stability Counseling Program $1.00M
11.034 2023 Mbda Capital Readiness Program $630,158
17.285 Registered Apprenticeship $272,840
59.077 Covid-19 - Community Navigator Pilot Program $146,282
10.902 Soil and Water Conservation $31,924
21.020 Community Development Financial Institutions Program $6,160
17.280 Wioa Dislocated Worker National Reserve Demonstration Grants $5,962
32.011 Affordable Connectivity Outreach Grant Program $5,247
14.022 Housing Counseling Program Homeownership Initiative $4,363