Finding Text
2023-007 – Internal Control over Reporting Requirements Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants-Entitlement Grants Cluster Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: County of San Bernadino Community Development and Housing Federal Award Identification Number: ADEL-22-1-03K/0175, ADEL-21-1-05M/5262, ADEL-23-2-05Z/3679 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR 200.415 Required Certifications, Subrecipients under the Federal award must certify to the pass-through entity whenever applying for funds, requesting payment, and submitting financial reports. A signature by the responsible official serves as evidence that the reimbursement request has been reviewed and approved in compliance with these requirements. As a subrecipient, the City receives funding on a reimbursement basis. The City prepares the reimbursement package, including all the required supporting documentation. Prior to the submission to the County, the package must be reviewed and approved by the responsible official as evidenced by the signature on the reimbursement request form. Further, pursuant to 2 CFR 200.334 Record retention requirements, the recipient and subrecipient must retain all Federal award records for three years from the date of submission of their final financial report. For awards that are renewed quarterly or annually, the recipient and subrecipient must retain records for three years from the date of submission of their quarterly or annual financial report, respectively. Records to be retained include but are not limited to, financial records, supporting documentation, and statistical records. Condition: During our audit, we noted that one of the reimbursement request forms was submitted to the County without proper signature and certification from the City’s responsible official. Cause: The City does not have adequate internal controls to ensure that reimbursement packages are reviewed and approved by the responsible official prior to submission. Effect or Potential Effect: The absence of certification resulted in noncompliance with the compliance requirement. Questioned Costs: None. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City establish internal control procedures to ensure that all reimbursement requests are reviewed and approved by an authorized official prior to submission. Views of Responsible Officials: Management concurs the finding.