Finding Text
Finding 2022-002: Community Development Block Grants/State?s Program and Non-Entitlement Grants in Hawaii, Assistance No. 14.228 Passed through Colorado Department of Local Affairs and Rio Grande County Compliance Requirement: Reporting Grant No.: Not applicable Type of Finding: Internal Control (material weakness) and compliance (material noncompliance) Criteria: The reporting section of the Community Development Block Grant (CDBG) Guidebook requires award recipients to submit quarterly financial and program performance reports to the Colorado Department of Local Affairs. These reports shall be supported by underlying accounting or performance records and are fairly presented in accordance with program requirements. Condition: The Organization inaccurately reported amounts for the leverage section of the Quarterly Financial & Performance Status Report for the period ending December 31, 2022. Cause: The Organization does not have a complete system of internal controls that provides for the review of the Quarterly Financial & Performance Status Reports. Questioned Costs: None Effect: The Quarterly Financial & Performance Status Report contained errors and was not in complete compliance with the reporting section of CDBG Guidebook. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure accurate financial reporting in compliance with the CDBG Guidebook. Grantee?s Response: See Corrective Action Plan.