Finding Text
Federal Grantor: Department of Housing and Urban Development Program: Youth Homelessness Demonstration Program Award No. and Year: IA0158Y7D022201, IA0134Y7D022202, IA0135Y7D022202, IA0156Y7D022201, IA0157Y7D022201 and 2024, and IA0158Y7D022302, IA0134Y7D022303, IA0135Y7D022303, IA156Y7D022302, IA0137Y7D022303 and 2025 Federal Financial Assistance Listing Number: 14.276 Compliance Requirement: Cash Management Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our testing of the City’s compliance with cash management requirements, we noted for two (2) reimbursement requests, there was no evidence of the Federal Funds Administrator’s review and approval prior to the request being submitted. Cause: The City did not maintain supporting documentation indicating that the Federal Funds Administrator reviewed and approved the reimbursement request prior to it being submitted. Effect: The City’s control was not consistently followed, which requires the Federal Funds Administrator’s review and approval over the reimbursement request to be documented prior to submission. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) of twelve (12) reimbursement requests were selected. The condition above was identified during our testwork of the City’s internal controls over cash management. Repeat Finding from Prior Years: No. Recommendation: We recommend the City adhere to their policies and ensure the review and approval of reimbursement requests are documented. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.