Finding Text
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-21-DC-08-0001 - 2021 Pass-Through Agency: Colorado Department of Local Affairs Pass-Through Number: F16CDB16602 Award Period: April 1, 2020 ? March 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: In accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), the Council should report all federal expenditures in the schedule of expenditures of federal awards (SEFA) each fiscal year. Additionally, per 2 CFR section 200.502(a)-(d), the determination of when a federal award is expended must be based on when the activity related to the federal award occurs, including the value of new loans made during the audit period. Condition: In reviewing the expenditure detail and supporting documentation for the 2022 SEFA, the Council had omitted approximately $726,000 of federal expenditures from the 2021 SEFA that were expended as part of the loan program in 2021. These loans were included in the SEFA for 2022 and audited as a major program for 2022. Questioned Costs: Unknown Context: The omission of expenditures from the 2021 SEFA was identified during testing of the current year major program. The seven omitted loans from 2021 were include in the 2022 loan activity for testing. Cause: In 2022, requests for reimbursement were submitted for certain loans distributed in 2021 that were not reflected on the 2021 SEFA. Effect: Excluding program expenditures from the SEFA results in the Council being out of compliance with the requirements of individual grant agreements and the Uniform Grant Guidance. Repeat Finding: No Recommendation: We recommend that the Council record federal expenditures on the SEFA under the program in the year upon which the loan disbursement occurs. Views of Responsible Officials: There is no disagreement with the audit finding.