Finding Text
2025-001 U.S. Department of Housing and Urban Development Community Development Block Grant Cluster Entitlement/Special Purpose Grants – ALN 14.218 HOME Investment Partnership Program – ALN 14.239 Significant Deficiency in Internal Controls Over Compliance Criteria: Per 2 CFR section 200.302(b)(2), the City’s financial management system must provide for the accurate, current and complete disclosure of the financial results of each Federal award or program. Condition: The subsidiary ledger for loans funded by the Federal award programs maintained by the Department did not agree to the City’s general ledger. Cause: The subsidiary loans receivable ledger has not been fully reconciled to the City’s general ledger, although substantial progress was made during the year to complete these reconciliations. Effect: The general ledger was potentially understated by $571,995 and $346,68 for Community Development Block Grant Cluster Entitlement/Special Purpose Grants loans and HOME Investment Partnership Program loans, respectively. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: The City should fully reconcile its subsidiary loan ledger to the City’s general ledger. The City should also consider implementing software specifically designed for the maintenance of loans. Views of Responsible Official: Management agrees with the finding.