Finding 1170243 (2025-003)

Finding 2025-003 (Material Weakness) Program: Housing Opportunities for Persons with AIDS Federal Agency: United States Department of Housing and Urban Development (HUD) AL #: 14.241 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: N/A Type of Compliance Finding: M) Subrecipient Monitoring Criteria Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f)). Condition The City did not provide evidence supporting compliance with this requirement. Cause The City failed to 1) evaluate the results of subrecipient’s previous audits including whether or not the subrecipient received a single audit in accordance with 2 CFR Part 200, Subpart F, and the extent to which the same or similar subaward was audited as a major program; and 2) have the Subrecipient address the identified findings in the contract monitoring report according to the response timeframe outlined in the report; to ensure quality programming that benefits the clients. Effect The City may not be compliant with HUD, which could result in the City not receiving federal assistance or repayment of grant funds. Questioned Costs None Context N/A Is the finding a repeat finding No Recommendations We recommend the City ensure Subrecipients respond to all corrective action plans by the required timeframes outlined and ensure all subrecipients are monitored as stated in the Federal regulations and City’s policy. Views of Responsible Officials / Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.