Finding Text
2022-004 Department of Housing and Urban Development Emergency Solutions Grants Program, Federal Financial Assistance Listing 14.231 Earmarking Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing 14.231 on the Schedule. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: For the two earmarking calculations, there was no formal documentation of a secondary review of the earmarking calculation. Cause: The Organization has designed internal controls over this area; however, the controls were not performed. Effect: The condition may affect the Organization?s ability to support compliance with earmarking requirements. Questioned Costs: None reported. Context/Sampling: Two earmarking calculations out of two were selected for testing for the program. Repeat Finding from Prior Year(s): Yes, Finding #2021-009 Recommendation: We recommend the procedures related to earmarking be reviewed with applicable program employees to ensure proper documentation and review is properly supported and the documentation is retained. Views of Responsible Officials: Management agrees with the finding.