Finding Text
2024-002 Program: CDBG – Entitlement/Special Purpose Grants Cluster
Financial Assistance Listing Number: 14.218
Federal Agency: U.S. Department of Housing and Urban Development
Award Year: All
Grant Award Number: All
Compliance Requirements: Reporting
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria:
Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control
over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. This includes internal controls over maintaining records of the
preparer and approver of required reports.
Condition:
We identified one (1) instance in which the City did not retain evidence to document the
individual who reviewed and approved the required reports prior to submission. This consisted
of one (1) financial report.
Cause:
The City's procedures did not include documenting the review and approval of the reports prior
to submission.
Effect:
Ineffective controls over this area of compliance could result in reports that are inaccurate or
incomplete being submitted or disclosed to the granting agency.
Questioned Costs:
No questioned costs were identified as a result of our audit procedures.
Context/Sampling:
A nonstatistical sample of two (2) out of four (4) cash on hand reports were selected for
reporting testing.
Repeat Finding from the Prior Year(s):
Yes.
Recommendation:
The City has implemented the appropriate changes subsequent to the end of fiscal year 2024.
During fiscal year 2024, the City had not fully implemented corrective actions. We recommend
the City continue performing the corrective actions they made.
Views of Responsible Official:
The City concurs with the finding. See separate corrective action plan.