Finding Text
2023-007 Internal Controls over Suspension and Debarment (Significant Deficiency) U.S. Department of Housing and Urban Development 14.267 – Continuum of Care Program 2023 Funding Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Condition: While the entity has adopted controls over compliance requirements related to suspension and debarment, these controls have not been consistently implemented during the year. Cause: Turnover / inadequate staffing in the Organization throughout the year and absence of a senior financial management position resulted in these controls not being consistently implemented. Effect: Without internal controls operating effectively, it is possible that the Organization would be at risk to be out of compliance with the compliance requirements. The Organization cannot effectively manage its federal program with controls that do not operate effectively. Questioned Costs: None Perspective: No observable evidence of controls being implemented consistently on the above compliance requirement. Repeat Finding: Yes Recommendation: The Organization should establish procedures to ensure that controls related to suspension and debarment are consistently implemented. Views of Responsible Officials: We concur with the recommendation, please see Corrective Action Plan.