Finding 576621 (2022-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-10-05

AI Summary

  • Core Issue: GHURA's reported amounts in financial summaries do not match underlying accounting records, indicating a lack of effective monitoring controls.
  • Impacted Requirements: Compliance with reporting requirements for the Integrated Disbursement and Information System (IDIS) and the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) is not being met.
  • Recommended Follow-Up: Implement stronger monitoring controls, ensure accuracy of IDIS reports by reconciling with accounting records, and actively monitor subawards for FSRS reporting.

Finding Text

Finding No.: 2022-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: Various Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2021, do not agree with underlying accounting records, as follows: 2. Certain amounts reported in PR26 – CDBG-CV Financial Summary Report do not agree with underlying accounting records, as follows: 3. Certain amounts reported in C04PR26 – CDBG Activity Summary by Selected Grant for Program Years 2021 and 2020 do not agree with underlying accounting records, as follows: 4. Subawards are not reported in FSRS, as follows: Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2021-003 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: The Integrated Disbursement and Information System (IDIS) accounts for transactions using the cash basis method of accounting (real-time) while GHURA’s trial balance reflects transactions using the accrual basis method of accounting. Due to the differing accounting methods, variances are expected between reports extracted from IDIS and GHURA’s accounting system. The responsible party will prepare a reconciliation between GHURA’s trial balance and the IDIS reports to ensure the completeness and accuracy of the reported amounts. GHURA agrees with the recommendation to monitor subawards for reporting in FSRS.

Categories

Subrecipient Monitoring HUD Housing Programs Reporting

Other Findings in this Audit

  • 178 2022-001
    Material Weakness Repeat
  • 179 2022-001
    Material Weakness Repeat
  • 180 2022-002
    Significant Deficiency
  • 181 2022-002
    Significant Deficiency
  • 182 2022-003
    Significant Deficiency
  • 183 2022-003
    Significant Deficiency
  • 184 2022-004
    Material Weakness
  • 185 2022-005
    Material Weakness
  • 186 2022-004
    Material Weakness
  • 187 2022-005
    Material Weakness
  • 188 2022-004
    Material Weakness
  • 189 2022-005
    Material Weakness
  • 190 2022-004
    Material Weakness
  • 191 2022-005
    Material Weakness
  • 576620 2022-001
    Material Weakness Repeat
  • 576622 2022-002
    Significant Deficiency
  • 576623 2022-002
    Significant Deficiency
  • 576624 2022-003
    Significant Deficiency
  • 576625 2022-003
    Significant Deficiency
  • 576626 2022-004
    Material Weakness
  • 576627 2022-005
    Material Weakness
  • 576628 2022-004
    Material Weakness
  • 576629 2022-005
    Material Weakness
  • 576630 2022-004
    Material Weakness
  • 576631 2022-005
    Material Weakness
  • 576632 2022-004
    Material Weakness
  • 576633 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $42.87M
14.248 Community Development Block Grants_section 108 Loan Guarantees $11.39M
14.850 Public and Indian Housing $5.67M
14.239 Home Investment Partnerships Program $4.42M
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $3.54M
14.872 Public Housing Capital Fund $2.18M
14.U03 Emergency Housing Voucher $1.48M
14.157 Supportive Housing for the Elderly $867,010
14.267 Continuum of Care Program $759,419
14.U02 Public Housing Cares Act Funding $353,818
14.U04 Hcv Cares Act Funding $317,271
14.879 Mainstream Vouchers $218,269
14.U01 Central Office Cost Cares Act Funding $200,001
14.896 Family Self-Sufficiency Program $169,551
14.191 Multifamily Housing Service Coordinators $62,380
14.870 Resident Opportunity and Supportive Services - Service Coordinators $23,676
14.231 Emergency Solutions Grant Program $9,618