Finding 572391 (2024-002)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing Number: 14.251 Federal Award Identification Number and Year: B-22-CP-MN-0493, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance and other Matter Criteria or specific requirement: The City should ensure it has proper controls in place to ensure all required reports for the program have documentation of someone other than the preparer reviewing the reports. Condition: There is no documentation of a review of the required reports for the program. Questioned costs: N/A Context: Noted there is no documentation of review for the required program reports. Cause: The City was unaware of the federal requirements over the reporting process for this award and so did not have processes in place to ensure all required reports for the program were reviewed and that review was documented. Effect: Lack of documentation of the review of required reports for the program could lead to errors in the reports and therefore could lead to improper charges to the grant. Repeat finding: No Recommendation: We recommend the City ensure it has proper controls in place to document the review of all required reports for the program. Views of responsible officials: There is no disagreement with the audit finding and a control process has now been put in place.