Finding Text
UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Material Weakness in Internal Control over Compliance and Material Noncompliance
2023-003 HOME Investment Partnership Program, ALN. 14.239
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Subrecipient Monitoring
Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.332 – Requirements for Pass-
Through Entities states, in part, that all pass-through entities must monitor the activities of the subrecipient as
necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes,
regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved.
Condition and Context: For one (1) vendor in our sample of five (5) in a population of 13, documentation of monitoring
was not provided. For one (1) vendor in our sample of five (5) in a population of 13, there was no evidence of
management review of monitoring procedures.
Questioned Costs: None
Cause: Procedures were not in place to fully document subrecipient monitoring for all subrecipients.
Effect: Noncompliance with the federal grant program occurred.
Repeat Finding: No.
Recommendation: We recommend procedures be strengthened to fully document subrecipient monitoring for all
subrecipients.
Views of Responsible Officials: Management agrees with the finding.