Finding Text
Assistance Listing, Federal Agency, and Program Name - ALN 14.251, U.S. Department of Housing and Urban Development, Economic Development Initiative Special Project, Neighborhood Initiative and Miscellaneous Grants
Federal Award Identification Number and Year - B-22-CP-CO-0158, 2022
Pass through Entity - N/A Direct funded
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - No
Criteria - Per 2 CFR 200.303(a), nonfederal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the comptroller general of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The City did not have controls in place surrounding the filing of semi annual performance and financial reports nor did it submit the required reports.
Questioned Costs - None
If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable
Identification of How Questioned Costs Were Computed - Not applicable
Context - According to the terms of the award, the City is required to submit a performance report to the granting agency on a semi annual basis and must include a completed Federal financial report as an attachment to each performance report.
Cause and Effect - The City was unable to access the granting agency's web portal and, therefore, did not submit the required reports during the year.
Recommendation - In order to ensure reporting requirements are met and that reports are accurate and filed timely, we recommend the City incorporate a formal review process of the reports.
Views of Responsible Officials and Planned Corrective Actions - The City agrees with this finding. The City is in the process of strengthening our formal grant review process for all reports to ensure accuracy and timeliness. See the corrective action plan.