Finding 3992 (2022-004)

2022-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Names: Community Development Block Grant Assistance Listing Numbers: 14.228 Pass-Through Agency: Wisconsin Department of Administration Pass-Through Numbers: CDBG SP 21-02 Federal Award Identification Number and Year: B-21-DC-55-0001; 2021 Award Periods: September 10, 2021 – March 1, 2023 Type of Finding Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement Uniform Guidance requires the reporting of costs or activities as the basis for making payments to providers. The City should have control activities for ensuring accurate reporting. Condition It was noted that there was a lack of independent review of the Community Development Block Grant reports submitted by someone who did not prepare the report. Questioned Costs None. Context While performing audit procedures, it was noted that the City does not have policies in place to ensure there is an independent review of reports. Cause The City does not have a system of internal controls in place to ensure reports are reviewed by an independent person who did not prepare the report. Effect Grant expenditures could be over or under-reported and not detected by City personnel. Repeat Finding No Recommendation We recommend the City implement procedures to ensure that someone knowledgeable of the grant requirements reviews the prepared report prior to submission. View of Responsible Officials There is no disagreement with the finding.