Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Community Project Funding/Congressionally Directed Spending ‐ Construction Assistance Listing Number: 93.493 Federal Award Identification Number and Year: 6-CE1HS52375-07 - 2023 Award Period: September 30, 2023, through September 29, 2026 Type of Finding: • Material Weakness in Internal Control over Compliance – Reporting • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.303 specifies that recipients must evaluate and monitor the recipient's or subrecipient's compliance with statutes, regulations, and the terms and conditions of Federal awards. This includes semiannual performance reporting requirements. Condition: Evidence of review and approval of semiannual progress reports was not available for items selected for testing. Questioned costs: None. Context: Of the two samples selected for testing, we noted that neither had proper review or approval processes in place. Cause: The Association did not have internal controls in place to ensure proper review and approval of semiannual progress reports prior to submission Effect: The Association risks submitting federal awards reports that are incomplete or not fairly presented in accordance with applicable program requirements. This could lead to inaccuracies in reported activity for the applicable reporting period. Repeat Finding: N/A. Recommendation: We recommend that the Association implement formal policies and procedures requiring the review and approval of performance, with such review and approval clearly documented. Views of responsible officials: There is no disagreement with the audit finding.