Finding Text
2023-010 Improve Controls and Compliance with Reporting Federal Program Information Federal Agency: U.S. Department of Housing and Urban Development Award Name(s): CDBG Entitlement Grants Cluster Assistance Listing Number(s): 14.218 Award Year: 2023 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance – Material Weakness Criteria or Specific Requirement Per Uniform Guidance (2 CFR § 200.328–200.329) and program-specific requirements for Community Development Block Grants/Entitlement Grants, recipients must submit required financial and programmatic reports accurately and timely to the federal awarding agency. Effective internal controls must be in place to ensure compliance with all reporting deadlines. Condition and Context The City did not file required financial and programmatic reports in a timely manner as stipulated under the grant program. Multiple reports were submitted after their respective deadlines, including the Consolidated Annual Performance and Evaluation Report (CAPER) which is required to be submitted 90 days after the close of a jurisdiction’s program year but was actually submitted in October of 2025. SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) Cause The City lacked adequate internal controls and procedures to ensure timely preparation, review, and submission of required reports to the federal awarding agency. Effect or Potential Effect Failure to file financial and programmatic reports on time constitutes noncompliance with federal program requirements and reduces transparency and accountability regarding the use of federal funds. Questioned Costs No questioned costs are reported. Identification as a Repeat Finding This is a repeat of prior year finding 2022-005. Recommendation The City should establish and implement formal procedures and controls to monitor reporting deadlines, ensure timely completion and submission of required financial and programmatic reports, and maintain documentation evidencing compliance with all reporting requirements. Views of Responsible Official Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.