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: Subrecipient Monitoring Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the 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 subrecipient monitoring requirements, we noted there was no evidence that the Federal Funds Administrator reviewed and approved the risk assessments for three (3) subrecipients. Cause: The City did not maintain supporting documentation indicating that the Federal Funds Administrator reviewed and approved the risk assessment performed over subrecipients. Effect: The City’s control was not consistently followed, which requires the Federal Funds Administrator’s review and approval over the subrecipient risk assessments to be documented. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of three (3) of five (5) subrecipients were selected. The condition above was identified during our testwork of the City’s internal controls over subrecipient monitoring. Repeat Finding from Prior Years: No. Recommendation: We recommend the City adhere to their policies and ensure the review and approval of subrecipient risk assessments are documented. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.