Finding 1156911 (2024-001)

Criteria: A monthly report is required to be submitted to the grantor and includes a narrative description of the previous month’s construction activity and any home sales. Condition: The December 2024 report was not filed with the pass-through grantor for one locality. Cause: The Organization has a small staff and there was turnover in the construction manager position who was the individual responsible for submitting the report. Other members of the Organization were not aware of the filing requirement at the time of submission. Possible Asserted Effect: There is potential for records to be inaccurate which could impact future reimbursements.Questioned Cost Amount: None noted.Perspective Information: Based on other testing performed, the lack of monthly reporting for one locality appears to be an isolated instance.Repeat Finding: This is not a repeat finding.Recommendation: We recommend that enhanced controls are put into place to ensure reports are filed timely with grantors and that all members of the executive team are aware of required reporting.Views of Responsible Officials and Planned Corrective Action: The Organization agrees with this finding. See auditee’s corrective action plan.