Finding Text
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.