Finding 1182142 (2025-004)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing Number: 14.228 Pass-Through Agency: State Department of Housing and Urban Development Pass-Through Number(s): N/A Award Period: July 1, 2024 to June 30, 2025 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that the County did not submit the required reports under Reporting of the Compliance Supplement. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, none of the reports were submitted during the year. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: 2024-012 Recommendation: CLA recommends the County develop procedures, such as reporting checklist to ensure that reporting requirements are tracked and met. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.