Finding Text
2025-002: Reporting Submissions Not Performed Timely Federal Department: Department of Housing and Urban Development Assistance Listing #: 14.251 Internal Controls Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria - The entity is required to submit semi-annual performance reports in the Disaster Recovery Grant Reporting (DRGR) system within 30 days after the end of each reporting period (i.e., by July 30, 2025, and January 30, 2026) per the grant agreement. Condition - Based on our testing and discussions with management, the entity prepared the required reports for both reporting periods; however, the reports had not been submitted in DRGR as of the date we performed fieldwork. Cause - According to management, the reports were prepared but not submitted in DRGR by the required deadlines due to inadequate internal controls over the submission process. Specifically, the entity did not have a formal review and reminder process to ensure that semiannual DRGR reports were submitted within the required timeframe. The entity relied on manual tracking by a single staff member, and there was no secondary review to verify that submission in DRGR had occurred by the due date. Context: The DRGR reporting is a new requirement for the Organization and this program is mostly run by a single staff member rather than a team like most of their other programs, so the normal controls in place to ensure reports are file timely did not function for these reports. Effect - Failure to submit required performance reports in DRGR by the established due dates results in noncompliance with the reporting requirements of the grant agreement. Untimely reporting may impair the Federal awarding agency’s ability to monitor the entity’s progress, assess achievement of program objectives, and identify potential issues in a timely manner. Continued noncompliance with reporting requirements could place the entity at risk for additional oversight, conditions on future awards, or other administrative actions by the Federal awarding agency. Recommendation - We recommend that the entity strengthen its internal controls over reporting to ensure timely submission of required reports. At a minimum, the entity should establish written procedures specifying the responsible personnel, reporting calendar, and required timelines for preparing and submitting reports, and implement a control (such as a supervisor review or checklist) to verify and document that each required report has been submitted by the applicable due date. Auditee’s comments and response - Clare Housing will ensure reporting requirements are met by establishing calendar reminders for all reporting requirements. Calendar reminders will include relevant staff, including but not limited to, the Director of Finance and the Director of Supportive Services. The Director of Supportive Services and Director of Finance will ensure submission of any prepared reports in the DRGR (or other relevant reporting) system by the appropriate due date. Responsible party for corrective action: Leah Cameron, Director of Supportive Services Repeat Finding: No