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.