Finding Text
Finding 2024-001 Reporting - Internal Control and Compliance over Reporting
Identification of the Federal Program:
Assistance Listing Number: 14.218
Assistance Listing Title: Community Development block Grants/Entitlement Grants
Federal Agency: U.S. Department of Housing and Urban Development
Pass-Through Entity: N/A
Federal Award Identification Number: B-23-MC-06-0048
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation):
The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements.
Pursuant to the Guidance on Cash on Hand Quarterly Report (replaced the Federal Financial Report, SF-425) and financial reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327:
Quarterly reports: Program award recipients must submit Cash on Hand Quarterly Report reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates noted below: See Table
Condition:
As a result of our test work, we noted that the City did not submit the required Cash on Hand Quarterly Report in
a timely manner as follows: See Table
Cause:
The City contracts with a third party to assist with CDBG program administration and compliance. There was a change in City personnel monitoring the delegated task to the third party of filing the CDBG quarterly reports and related compliance requirement, which resulted in delayed filings.
Effect or Potential Effect:
Delay in filing and not filing the reports resulted in noncompliance with the compliance requirements.
Questioned Costs: None
Context: See condition above for the context of the findings.
Identification as a Repeating Finding, if applicable: Not Applicable.
Recommendation:
We recommend that the City strengthen their report submission process and procedures to ensure all required reports are properly reviewed and approved and submitted timely. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval.
View of Responsible Officials: Management concurs the finding.