Finding Text
Criteria or Specific Requirements
Under 24 CFR §574.520, formula and competitive grant recipients are required to report to the U.S. Department of Housing and Urban Development (HUD) on grant activities, including HOPWA funds received and types of assistance provided. In 2022, HUD introduced the Consolidated Annual Progress Report (APR)/Consolidated Annual Performance and Evaluation Report (CAPER) reporting format, which must be completed by both grantees and their project sponsors. These reports are intended to provide detailed, accurate, and complete financial and performance data for all HOPWA-related activities.
Additionally, per the OMB 2024 Compliance Supplement, Part 6 – Internal Control, federal program recipients must establish and maintain effective internal controls over federal award reporting. This includes controls to ensure:
Data presented is accurate, complete, and in accordance with the award terms
Reports reconcile to accounting records and underlying support
Review and approval processes are in place before submission
Condition
In performing reporting testwork, we noted that for the APR/CAPER submitted by the Foundation for the grant year ending June 30, 2024, total grant expenditures reported per the APR/CAPER were understated by a total net amount of $67,208 when compared to total grant expenditures included in
the monthly reimbursement request invoices as follows:
Questioned Costs
None. This issue is considered an internal control finding.
Cause and Effect
Per inquiry with the Associate Director of Contract Accounting, the above net understatement was due to a misunderstanding regarding the proper completion of certain fields in the new consolidated APR/CAPER workbook. The Foundation has requested additional guidance and clarification from the grantor regarding the proper completion of the workbook.