FAC Explorer

Finding 1224098 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-07-20
Audit: 407494
Organization: City of Wichita (KS)
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: The City failed to document the Housing Finance Manager's review and approval of four PR-29 reports before submission.
  • Impacted Requirements: This violates 2 CFR Section 200.303(a), which mandates effective internal controls over Federal awards.
  • Recommended Follow-Up: Ensure adherence to policies by documenting all reviews and approvals of reports to strengthen compliance controls.

Finding Text

Program: COVID-19 Community Development Block Grant Cluster Entitlement/Special Purpose Grants Federal Financial Assistance Listing Number: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Award No. and Year: B23-MC-20-0004 and 2023, B24-MC-20-0004 and 2024, B-25-MC-20-0004 and 2025 Compliance Requirements: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Section 200.303(a), Internal Controls, state 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 terms and conditions of the Federal award. Condition: During our testing of the City’s compliance with reporting requirements, we noted four (4) PR-29 reports, where there was no evidence of the Housing Finance Manager’s review and approval prior to the report being submitted. Cause: The City's control procedures did not require documentation to be retained evidencing management review and approval of PR29 reports prior to submission. Effect: Although management indicated that an informal review occurred prior to submission, the control did not require retention of documentation evidencing the review. Consequently, the City could not demonstrate that supervisory review was performed for the reports tested.Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of four (4) of eight (8) PR-29 reports were selected. The condition above was identified during our testwork of the City’s internal controls over reporting. Repeat Finding from Prior Years: No Recommendation: We recommend the City adhere to their policies and ensure the review and approval of reports are documented. View of Responsible Officials: See separately issued Corrective Action Plan.

Corrective Action Plan

Finding Documentation was not retained to evidence management review and approval of PR-29 reports prior to submission. Corrective Action Planned The process was enhanced for 2026 to include documented review and approval of quarterly PR-29 reporting, by the Housing Finance Manager, prior to submission. Contact Person Nicole Babcock Anticipated Completion Date Implemented June 2026; ongoing monitoring thereafter.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1224092 2025-001
    Material Weakness Repeat
  • 1224093 2025-001
    Material Weakness Repeat
  • 1224094 2025-001
    Material Weakness Repeat
  • 1224095 2025-001
    Material Weakness Repeat
  • 1224096 2025-001
    Material Weakness Repeat
  • 1224097 2025-002
    Material Weakness Repeat
  • 1224099 2025-003
    Material Weakness Repeat
  • 1224100 2025-003
    Material Weakness Repeat
  • 1224101 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.958 WATER INFRASTRUCTURE FINANCE AND INNOVATION (WIFIA) $408.11M
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $10.69M
20.507 FEDERAL TRANSIT FORMULA GRANTS $8.56M
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $6.00M
97.083 STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) $3.68M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.53M
14.872 PUBLIC HOUSING CAPITAL FUND $2.02M
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $1.13M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $829,149
14.879 MAINSTREAM VOUCHERS $522,233
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $420,269
93.569 COMMUNITY SERVICES BLOCK GRANT $367,422
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $330,581
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $270,872
16.817 BYRNE CRIMINAL JUSTICE INNOVATION PROGRAM $266,397
15.539 EQUUS BEDS DIVISION ACQUIFER STORAGE RECHARGE $238,527
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $217,219
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $212,320
15.916 OUTDOOR RECREATION ACQUISITION, DEVELOPMENT AND PLANNING $209,424
14.267 CONTINUUM OF CARE PROGRAM $207,992
20.940 RECONNECTING COMMUNITIES PILOT (RCP) DISCRETIONARY GRANT PROGRAM $164,900
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $118,443
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $117,497
16.575 CRIME VICTIM ASSISTANCE $117,378
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $102,476
20.205 HIGHWAY PLANNING AND CONSTRUCTION $93,185
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $78,024
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $69,685
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $62,157
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $58,786
16.922 EQUITABLE SHARING PROGRAM $50,000
16.609 PROJECT SAFE NEIGHBORHOODS $46,542
14.850 PUBLIC HOUSING OPERATING FUND $45,393
66.001 AIR POLLUTION CONTROL PROGRAM SUPPORT $39,000
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $36,495
16.543 MISSING CHILDREN'S ASSISTANCE $33,167
45.024 PROMOTION OF THE ARTS GRANTS TO ORGANIZATIONS AND INDIVIDUALS $17,318
84.425 EDUCATION STABILIZATION FUND $16,525
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $14,364
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $11,780
45.025 PROMOTION OF THE ARTS PARTNERSHIP AGREEMENTS $10,500