Finding Text
Finding 2022-003 Assistance Listing Number: 14.231 Name of Federal Program or Cluster: Emergency Solutions Grant Program Name of Federal Agency: Department of Housing and Urban Development Name of Pass-through Entities: Wisconsin Department of Administration and City of Racine Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Section 200.302 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: Management?s grant tracking spreadsheets for federal awards were not properly updated or reviewed during the year. Cause: Due to staff turnover during the year, sufficient training for preparing grant tracking spreadsheets was not provided for new staff and no monitoring of this process was performed to ensure it was completed in a timely manner. Effect or Potential Effect: Unallowable costs could be charged to federal awards and not be detected and corrected. Repeat Finding: No Recommendation: We recommend the Organization provide additional training to staff responsible for tracking federal and state awards and utilize another member of management to review and approve the grant tracking spreadsheets routinely. Additionally, we recommend reconciliations be performed monthly between the grant spreadsheets and the financial reporting software.