Finding Text
Finding 2025-002 - Reporting - Significant Deficiency Name of Federal Agency: Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: HS 2025-105, HS 2025-209, HS 2024-202. Program year is 2025. Name of Pass-through Entity (if applicable): City of Cambridge Department of Housing and Community Development Criteria: In accordance with §200.328, Financial Reporting, the recipient or subrecipient must submit financial reports as required by the Federal award. Additionally, in accordance with §200.329, Monitoring and Reporting Program Performance, the recipient or subrecipient must submit performance reports as required by the Federal award. Condition: The Agency did not have internal controls over its reporting compliance requirement under Uniform Guidance. Cause: The Agency did not have internal controls in place to ensure that reporting requirements were prepared, reviewed and submitted on a timely basis. Effect or Potential Effect: Failure to perform reporting procedures in accordance with the Uniform Guidance could result in the reports being inaccurate or not filed on a timely basis. Questioned Costs: Not applicable. Context: For 100% of reports selected (total of 4), management did not provide adequate supporting documentation of the controls in place for the preparation, review and timely submission of the reports. Identification as a Repeat Finding: This is a repeat finding (see prior year finding number: 2024-002) Recommendation: We recommend that the Agency establish internal controls over its reporting compliance requirements to ensure that the Agency is in compliance with Uniform Guidance. Views of Responsible Officials: Management acknowledges that certain internal controls did not operate effectively during the year ended June 30, 2025. Management is in the process of implementing additional controls to ensure a stable control environment that supports accurate and timely financial reporting in future periods.