Finding Text
2022-003 Reporting Federal Agency: U.S Department of Housing and Urban Development Federal Program Name: Community Development Block Grant Federal Award Identification Number and Year: B21MC120027, various Assistance Listing Number: 14.218 Grant Award Number: B21MC120027 Award Period: October 1, 2021 through September 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of monitoring and reporting program performance. Entities receiving CDBG or CDBG-CV funding are required to submit the IDIS PR-29 Cash on Hand Quarterly Report every quarter, within 30 days of the end of the quarter. Additionally, entities receiving NSP-1 or NSP-3 funding are required to submit each quarter the Quarterly Performance Report. Condition: CDBG and CDBG-CV Cash on Hand Quarterly Reports were not submitted timely, within 30 days of period end to the U.S. Department of Housing and Urban Development, as required. Questioned Costs: None Context: During our testing, we reviewed all four quarterly CDBG Cash on Hand Quarterly Reports and all four quarterly CDBG-CV Cash on Hand Quarterly Reports. We also reviewed all four Quarterly Performance Reports for NSP-1 and NSP-3 program for the period. We noted that all CDBG Cash on Hand Quarterly Reports and CDBG-CV Cash on Hand Quarterly Reports reviewed were not submitted within 30 days of period end, as required. The fourth quarter Cash On Hand reports were not submitted to date at the time of review. We also noted all four Quarterly Performance Reports for NSP-1 and NSP-3 were not submitted timely within 30 days of period end, as required, with three of the four reports unsubmitted at the time of review. Cause: Policies and procedures were not established to ensure the timely filing of reports. Repeat Finding: No Effect: The City was not in compliance with the reporting requirements as specified in the grant agreement. Recommendation: We recommend that the City design processes and procedures to ensure that all reports are submitted timely as required by grant agreements. We recommend the City develop an internal compliance checklist that includes required reports and due dates to be maintained for tracking and record keeping purposes to assist in monitoring compliance. Views of responsible officials: For a period of time, City staff could not access the federal system, however, this issue has since been resolved. Finance will keep a calendar of all reporting deadlines and follow up with responsible departments prior to the due date to ensure reports are submitted on time.