Finding Text
Federal Agency: Department of Housing and Urban Development CFDA No.: 14.218 Federal Program: Community Development Block Grants/Entitlement Grants Federal Award Year: 2024 Control Category: Reporting Questioned Costs: $0 Condition For the Community Development Block Grants/Entitlement Grants program, the City did not submit the following reports within the required deadline: Report Type Reporting Period (End Date) Report Submission Deadline Report Submission Date SF-425 Federal Financial Report September 30, 2023 October 30, 2023 November 20, 2023 SF-425 Federal Financial Report June 30, 2024 July 30, 2024 January 27, 2025 Criteria Pursuant to the Part 4 CDBG – Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: SF-425 Federal Financial Report: Program award recipients must submit SF 425 reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates. Cause The City did not have internal controls in place to ensure that financial and performance reports are filed timely. Effect Delay in filing the reports resulted in non-compliance with the compliance requirements. Questioned Costs There were no questioned costs. Recommendation We recommend that the City strengthen internal controls by implementing procedures to ensure the timely filing of financial and performance reports. Management’s Response Regarding Corrective Action Taken or Planned Management agrees with the finding. In 2023, shortly after management was made aware procedures were put into place to properly oversee the timely submission of the SF-425 financial reports.