Finding 392936 (2023-002)

2023-002 Program: Community Development Block Grants / Entitlement Grants Federal Financial Assistance Listing Number: 14.218 Grant Identification Number: B-22-MC-06-0004 and related program income Federal Grantor: U.S. Department of Housing and Urban Development Passthrough Entity: State Department of Housing and Community Development Compliance Requirements: Reporting Type of Finding: Material Weakness in the Internal Control over Compliance and Material Noncompliance Repeat finding: Yes Criteria: 2 CFR 200.329(b) requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with program requirements. The City must submit Quarterly Reports that contains the cash available on hand that is supported by actual amounts reported in the financial statements. Condition: Cash on hand information was reported inaccurately. Cause: The City’s control did not ensure the Cash on Hand Report was prepared in accordance with federal requirements and the review process at the City did not capture the information needed to ensure that the reports were accurate. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None. Context/Sampling: All four quarters of the program did not report the correct cash amount on hand. Repeat Findings from Prior Years: No. Recommendation: We recommend that the City follows its comprehensive policies and procedures ensuring that the quarterly reports are reviewed timely before they are submitted to the federal agencies. Views of Responsible Officials: See separately issued Corrective Action Plan.