Finding Text
Finding 2022-001
Assistance Listing 14.218 Community Development Block Grants/Entitlement Grants
Criteria
Per Uniform Guidance, the required reports for federal awards should include all activity for the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Additionally, per HUD guidance, the Quarterly Cash on Hand report must be submitted to the respective field office within 30 days after the end of the reporting period.
Condition
For the seven Community Development Block Grants/Entitlement Grant reports sampled, disbursement and program income data reported on the report submissions did not directly tie to the general ledger. For four of seven reports sampled, the Quarterly Cash on Hand Reports were submitted after the federal report due dates.
Cause
Failure to reconcile report submissions to Township accounting records and complete the reports in a timely manner.
Effect
The Township could not provide accounting reports in direct support of the transactions submitted for reimbursement and thus reported in the respective required HUD report submission. The Township was not in compliance with HUD’s reporting compliance requirement.
Perspective Information
This finding represents an isolated problem.
Recommendation
The Township should ensure that its required federal report submissions use data that directly correlates to the data in the general ledger. The Township should also ensure that all required reports are submitted within HUD’s required time frame.
View of Responsible Official
The Township is in agreement with this finding and have implemented a corrective action plan including timely reconciliation of general ledger detail to federal IDIS reports.