Finding Text
FINDING: 2024-006 Reporting Federal Agency: U.S. Department Housing and Urban Development Federal Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing # 14.251 Award Period: March 9, 2022 through August 31, 2030 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: The Uniform Guidance requires that an entity establish a system of properly functioning internal controls and that all reporting be submitted accurately and within the time frames prescribed by the grantors. Condition: The Semi-Annual Reports were submitted by the contracted grant coordinator with inaccurate expenditure information, and there was no further review by Village personnel for the semi-annual reports or the HUD draw requests. Questioned Costs: None Context: There was inaccurate expenditure information reported for the semi-annual reports selected for testing. There was also no documented review or approval for these reports. Cause: The Village has not implemented an effective system of internal controls over reporting to ensure that reports reflect actual expenditure activity for the respective period. The Village has not implemented an effective system of internal controls over reporting to ensure that reports are reviewed and approved by someone within the Village, other than the original preparer of the reports Effect: Without an effective review and approval process, the semi-annual reports may contain inaccurate information. Repeat Finding: The finding is new in the current year. Recommendation: The Village should continue to evaluate its process to ensure they are in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The Village is currently reviewing its policies and procedures to ensure that it follows Uniform Guidance Reporting and Cash Management Standards.