Finding Text
2022-006: Federal Awards ? Reporting Federal Agency: Department of Housing and Urban Development CFDA No.: 14.218 Federal Program: Community Development Block Grants/Entitlement Grants Federal Award Year: 2022 Control Category: Reporting Questioned Costs: $0 Condition For the Community Development Block Grants/Entitlement Grants program, the City did not submit the following reports within the required deadline: Report Type Reporting Period (End Date) Report Submission Deadline Report Submission Date SF-425 Federal Financial Report September 30, 2021 October 30, 2022 January 11, 2022 SF-425 Federal Financial Report December 31, 2021 January 30, 2022 January 19, 2022 SF-425 Federal Financial Report March 31, 2022 April 30, 2022 May 10, 2022 SF-425 Federal Financial Report June 30, 2022 July 30, 2022 September 7, 2022 Criteria Pursuant to the Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: SF-425 Federal Financial Report: Program award recipients must submit SF 425 reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates. Cause The City did not have internal controls in place to ensure that financial and performance reports are filed timely. Effect Delay in filing the reports resulted in non-compliance with the compliance requirements. Questioned Costs There were no questioned costs. Recommendation We recommend that the City strengthen internal controls by implementing procedures to ensure the timely filing of financial and performance reports. Management?s Response Regarding Corrective Action Taken or Planned Management agrees with the finding. Due to vacancies experienced by the City of South Gate and the absence of a Director and Deputy Director of Administrative Services, management was not able to properly oversee the timely submission of the SF-425 financial reports for fiscal year ended June 30, 2022. Additionally, due to these vacancies, the late submission of these reports extended into the first two quarters of the following fiscal year. However, these vacant positions have since been filled and Management will ensure that all SF-425 financial reports are reviewed and submitted within 30 days after the reporting period end date.