Finding 1235987 (2025-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-22

AI Summary

  • Core Issue: All four required reports were submitted late, indicating a significant deficiency in internal controls over compliance.
  • Impacted Requirements: Timely and accurate submission of financial and performance reports as mandated by federal regulations (2 CFR 200.327–200.329).
  • Recommended Follow-up: Establish a formal reporting calendar and review process to ensure deadlines are met and documentation is maintained.

Finding Text

Reporting Federal Agency: Department of Housing and Urban Development Federal Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing Number: 14.251 Award Period: February 5, 2024 – August 31, 2031 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Per 2 CFR 200.327–200.329 and applicable award terms, nonfederal entities are required to submit accurate and timely financial and performance reports as specified by the federal awarding agency. Condition: Four (4) of four (4) reports tested were not submitted by the required deadlines. Questioned costs: None. Context: We tested 4 required reports for the major program; none (0 of 4) were submitted in accordance with required deadlines. Cause: The deficiency appears to be due to inadequate monitoring of reporting deadlines and the absence of a formal review or tracking process to ensure timely submission. Effect: Failure to submit reports timely may result in noncompliance with grant requirements, potential delays in funding, and increased risk of additional oversight by the awarding agency. Repeat finding: No. Recommendation: We recommend the Organization implement a formal reporting calendar and review control process to track due dates, ensure timely submission, and retain documentation of report filings in accordance with federal requirements. View of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2025-005 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants – Assistance Listing No. 14.251 Recommendation: We recommend the Organization implement a formal reporting calendar and review control process to track due dates, ensure timely submission, and retain documentation of report filings in accordance with federal requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has implemented a formal reporting calendar and enhanced its review procedures to track filing deadlines, support timely submission of required reports, and retain documentation of filings in accordance with federal requirements. Name(s) of the contact person(s) responsible for corrective action: David Court, Resource Development Director Planned completion date for corrective action plan: June 30, 2026

Categories

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

Other Findings in this Audit

  • 1235978 2025-006
    Material Weakness Repeat
  • 1235979 2025-003
    Material Weakness Repeat
  • 1235980 2025-003
    Material Weakness Repeat
  • 1235981 2025-003
    Material Weakness Repeat
  • 1235982 2025-004
    Material Weakness Repeat
  • 1235983 2025-004
    Material Weakness Repeat
  • 1235984 2025-004
    Material Weakness Repeat
  • 1235985 2025-005
    Material Weakness Repeat
  • 1235986 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.761 WATER AND WASTE TECHNICAL ASSISTANCE AND TRAINING GRANTS $322,562
10.771 RURAL COOPERATIVE DEVELOPMENT GRANTS $204,000
10.443 OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED AND VETERAN FARMERS AND RANCHERS $184,037
10.871 SOCIALLY-DISADVANTAGED GROUPS GRANT $162,605
10.872 HEALTHY FOOD FINANCING INITIATIVE $117,344
10.446 RURAL COMMUNITY DEVELOPMENT INITIATIVE $105,061
14.024 COMMUNITY DEVELOPMENT BLOCK GRANT- PRICE COMPETITION $48,309
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $45,640
10.164 WHOLESALE FARMERS AND ALTERNATIVE MARKET DEVELOPMENT $14,463
10.351 RURAL BUSINESS DEVELOPMENT GRANT $12,665
66.202 CONGRESSIONALLY MANDATED PROJECTS $433