Finding 1206033 (2025-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-07

AI Summary

  • Core Issue: Lack of effective internal controls for timely and accurate periodic reporting on federal awards.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303 could lead to withholding of federal funds.
  • Recommended Follow-Up: Implement a review process to ensure periodic reports are submitted accurately and on time.

Finding Text

U.S. Department of Housing and Urban Development, passed through Barren County Fiscal Court ALN 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Contract No. B-22-CP-KY-0347 (2022) and B-23-CP-KY-0612 (2023) Criteria: 2 CFR 200.303 requires recipients and subrecipients to establish, document, and maintain effective internal controls over Federal awards. Condition: During our audit procedures, we noted there was no process in place to ensure periodic reporting was submitted timely and accurately. Cause: Certain internal controls were not in place to prevent or detect lack of periodic reporting, or inaccurate reporting. Effect: Federal funds could be withheld if periodic reports are not submitted, or are inaccurate. Questioned Costs: None Recommendation: We recommend management implements a review process whereby there is a review control over the submission of period reports. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding and as a result, the Authority will implement a review process over required periodic reporting.

Corrective Action Plan

2025-004 LACK OF INTERNAL CONTROL OVER REPORTING U.S. Department of Housing and Urban Development ALN 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Contract No. B-22-CP-KY-0347 (2022) and B-23-CP-KY-0612 (2023) Criteria and Condition: During our audit procedures, we noted there was no process in place to ensure periodic reporting was submitted timely and accurately. Cause: Certain internal controls were not in place to prevent or detect lack of periodic reporting, or inaccurate reporting. Effect: Federal funds could be withheld if periodic reports are not submitted, or are inaccurate. Questioned Costs: None Recommendation: We recommend management obtain a greater understanding of the Compliance Supplement requirements over HUD grants, and implement a review process whereby there is a review control over the submission of period reports. Action Taken: The Authority will gain a greater understanding of HUD grants, and will implement a review process over required periodic reporting. Individual(s) responsible for implementing: Maureen Carpenter, CEO Anticipated Completion Date: September 30, 2026

Categories

Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 1206028 2025-002
    Material Weakness Repeat
  • 1206029 2025-002
    Material Weakness Repeat
  • 1206030 2025-003
    Material Weakness Repeat
  • 1206031 2025-003
    Material Weakness Repeat
  • 1206032 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $346,206