Finding 541997 (2024-001)

Findings: 2024-001 – Financial reporting Agency: Department of Housing and Urban Development FAL Number: 14.251 Name of Federal Program or Cluster: Economic Development Initiative, Community Project Funding, and Other Grants Type of Finding: Significant Deficiency Criteria: The Settlement must submit a performance report on a semi-annual basis. The performance reports shall consist of a narrative of work accomplished during the reporting period. During the period of performance, which begins upon HUD signing the grant agreement, the Settlement must submit these reports no later than 30 calendar days after the end of the 6-month reporting period. The first of these reporting periods begins on the first of January or June (whichever occurs first) after the date the grant agreement is signed by HUD. Condition: The final semi-annual performance report filing was filed after the due date of the performance report. Cause: Procedures are in place to submit reporting required for grants but the performance report was filed after the due date. Effect: The Settlement did not comply with the contract provision of financial reporting. Context: A sample of one performance reports was selected for audit from a population of two. The test found that the performance report was filed after the due date established by the grant agreement. Recommendation: We recommend that the Settlement review the applicable due dates for all relevant financial reporting for the program and implement controls to assure that all reports are filed in a timely manner. Views of Responsible Officials: See Corrective Action Plan in Appendix A.