Finding Text
2024-001 – Material Weakness in Compliance and Internal Control over Reporting
Identification of federal
programs:
U.S. Department of Housing and Urban Development:
#14.251 Economic Development Initiative, Community Project
Funding, and Misc. Grants, #B-22-CP-AK-0003
Criteria: Under the terms of the grant agreement, grantees must submit a
performance report and financial information in the Disaster
Recovery Grant Reporting system (DRGR) on a semi-annual
basis, no later than 30 calendar days after the end of the sixmonth
reporting period. For the year under audit, reports were
required for semi-annual period ending December 31, 2023 and
period ending June 30, 2024.
Condition: The report for period ending December 31, 3023 was not
submitted in DRGR. The report for period ending June 30, 2024
was submitted in DRGR but was outside of the 30 day deadline.
Cause: The Organization does not have a procedure in place to monitor
all award reporting requirements and deadlines or to ensure that
they are met timely.
Effect or potential effect: The Organization is not in compliance with the reporting
requirements of the terms of the grant agreement.
Questioned Costs: None
Context: During the course of the audit of the major program, auditors
requested copies of the required reports and their corresponding
approvals. Both semi-annual reports were prepared in the DRGR
system, but the DRGR system shows the report for period
ending December 31, 2023 as “In Progress” and the report for
period ending June 30, 2024 is “Reviewed and Approved” by the
agency, but the submission date occurs after the deadline date.
Identification of Repeat Finding: Not applicable.
Recommendations: We recommend that as part of the Organization’s internal
control structure over compliance with reporting requirements,
to establish monitoring procedures or checklists to ensure that
reporting deadlines are met and to retain a copy of the report,
including any attachments, and proof of submission of the report
by authorized individuals on or before the required deadline.
Views of Responsible Officials: See Corrective Action Plan