Finding Text
2024-002 – Reporting – Internal Control and Compliance over Reporting (Material Weakness)
Information of the Federal Program(s):
Assistance Listing Number: 14.218
Federal Program Name: Community Development Block Grants-Entitlement Grants Cluster
Federal Agency: Department of Housing and Urban Development
Pass-Through Entity: N/A
Federal Award Number(s) and Award Year: B-23-MC-06-0554
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation):
Community Development Block Grants-Entitlement Grants Cluster
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:
Reporting Period Quarter 1: 7/1-9/30 Due Date of Report October 30
Reporting Period Quarter 2: 10/1-12/31 Due Date of Report January 30
Reporting Period Quarter 3: 1/1-3/31 Due Date of Report April 30
Reporting Period Quarter 4: 4/1-6/30 Due Date of Report July 30
Condition:
The City did not submit the required Cash on Hand Quarterly Report in a timely manner. The quarterly Cash on Hand Quarterly Report for the all of the four (4) reporting periods were submitted past deadline.
Federal Financial Report 7/1/2023 - 9/30/2023: Report Submission Deadline 10/20/2023, Report Submission Date 2/26/2024.
Federal Financial Report 10/01/2023-12/31/2023: Report Submission Deadline 1/20/2024, Report Submission Date 2/26/2024.
Federal Financial Report 01/01/2024 - 03/31/2024: Report Submission Deadline 4/30/2024, Report Submission Date 10/16/2024.
Federal Financial Report 04/01/2024 - 06/30/2024: Report Submission Deadline 7/30/2024, Report Submission Date 10/16/2024.
Cause:
Due to staff turnover, the City did not to consistently follow the program’s procedures to ensure that reports were submitted in a timely manner, in accordance with the timelines outlined in the Uniform Guidance.
Effect or Potential Effect:
Delay in filing the reports resulted in noncompliance with the compliance requirements.
Questioned Costs:
None.
Context:
See condition above for the context of the finding.
Identification as a Repeat Finding, If Applicable:
Yes. See prior year finding 2023-005.
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.
Views of Responsible Officials:
Management concurs.