Finding Text
2022-004 Department of Housing and Urban Development Federal Financial Assistance Listing/CFDA #14.128 Section 242 ? Mortgage Insurance - Hospitals Reporting Material Weakness in Internal Control Over Compliance Criteria: The OMB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: The Section 242 ? Mortgage Insurance - Hospitals Program requires quarterly reports and certain annual reports. For the year ended July 31, 2022, the Organization failed to file the annual budget prior to the start of the year. Cause: There was turnover of key financial personnel during 2021 and 2022. The Organization did not follow their internal control policy to ensure the required reports were filed. Effect: The required reports were not submitted in accordance with loan requirements. Questioned Costs: None reported. Context: There were a total of eight reports required to be submitted for the year ended July 31, 2022. Three were selected for testing. Of the three selected, one was not submitted as required. Through additional inquiry, there were no other reports identified as not being submitted. Repeat Finding from Prior Years: Yes, Finding 2021-004. Recommendation: We recommend the Organization enhance internal control policies to ensure required reports are filed timely and accurately. Views of Responsible Officials: Management agrees with the finding.