FAC Explorer

Finding 573761 (2024-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-08-18
Audit: 364417
Organization: City of Thornton, Colorado (CO)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: Reports submitted to HUD lacked documentation showing they were reviewed by someone other than the preparer.
  • Impacted Requirements: This violates 2 CFR 200.303, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-Up: Implement policies to ensure all reports have documented supervisory reviews before submission.

Finding Text

Finding 2024-003: Reporting Assistance Listing Program Title: CDBG – Entitlement/Special Purpose Grants Cluster: Community Development Block Grants/Entitlement Grants; COVID-19 - Community Development Block Grants/Entitlement Grants Assistance Listing Program Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Award Year: 2024 Award Numbers: B-20-MC-08-0015, B-20-MW-08-0015, B-21-MC-08-0015, B-22-MC-08-0015, B-23-MC-08-0015 Pass-through Entity: N/A Criteria: 2 CFR 200.303 requires that the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The quarterly Cash on Hand reports and the annual FFATA report did not have documentation supporting a review by an employee other than the preparer prior to submission. The reports were prepared and submitted to the Department of Housing and Urban Development (“HUD”), but they were not reviewed by anyone other than the preparer prior to submission. Cause: The City does not have processes and controls in place to ensure that reports are reviewed and requirements are met. Effect or Potential Effect: Without a supervisory review, there is an increased risk of inaccurate reporting. Questioned Costs: None. Context: For the quarterly Cash on Hand reports and the annual FFATA report, there was no documentation supporting a supervisory review and approval of each of the reports. Identification as a Repeat Finding, If Applicable: Not Applicable Recommendation: We recommend the City establish polices and procedure to require documentation of a report reviewer other than the preparer, prior to submission of each required report. View of Responsible Officials: Management agrees with this finding.

Corrective Action Plan

Federal Awards Finding 2024-003: Reporting Finding: The City receives Community Development Block Grant (CDBG) funding through the U.S. Department of Housing and Urban Development (HUD). During the year, the Cash on Hand & FFATA reporting did not have proper approval and review documentation. Corrective Actions Taken or Planned: The Senior Accountant works with the Grant and Housing Supervisor to manage these funds. They will work together so that one employee completes the Cash on Hand or FFATA report and the other reviews, approves, and documents the approval. Anticipated Date of Implementation/Completion: July 31, 2025 Name of contact person responsible for correction action: Pam Goodwin, Senior Accountant

Categories

Reporting Subrecipient Monitoring HUD Housing Programs Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 573762 2024-002
    Significant Deficiency
  • 573763 2024-002
    Significant Deficiency
  • 573764 2024-002
    Significant Deficiency
  • 573765 2024-002
    Significant Deficiency
  • 573766 2024-003
    Significant Deficiency
  • 1150203 2024-003
    Significant Deficiency
  • 1150204 2024-002
    Significant Deficiency
  • 1150205 2024-002
    Significant Deficiency
  • 1150206 2024-002
    Significant Deficiency
  • 1150207 2024-002
    Significant Deficiency
  • 1150208 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.939 Safe Streets and Roads for All $362,689
21.027 Coronavirus State and Local Fiscal Recovery Funds $357,389
97.044 Assistance to Firefighters Grant $216,120
16.575 Crime Victim Assistance $177,836
81.128 Energy Efficiency and Conservation Block Grant Program (eecbg) $174,930
16.710 Public Safety Partnership and Community Policing Grants $105,555
20.205 Highway Planning and Construction $50,626
16.738 Edward Byrne Memorial Justice Assistance Grant Program $33,403
20.616 National Priority Safety Programs $26,121
14.218 Community Development Block Grants/entitlement Grants $25,588
16.753 Congressionally Recommended Awards $23,257
16.922 Equitable Sharing Program $18,720
20.600 State and Community Highway Safety $14,535
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $1,000
97.067 Homeland Security Grant Program $956
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $-11,980
15.507 Watersmart (sustain and Manage America’s Resources for Tomorrow) $-22,303