Finding 582641 (2023-001)

Federal Program: Department of Housing and Urban Development; CDBG Cluster; Federal Assistance Listing #14.218 Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance) requires all nonfederal entities to submit quarterly financial reports within 30 days after quarter-end. Condition: The City of Cumberland, Maryland did not submit the PR29 Cash on Hand Quarterly Report for the first quarter fiscal year 2023 by the due date required by the Uniform Guidance. Cause: The City of Cumberland, Maryland’s Finance Department believed they could only file reports after a draw had been completed and since the City of Cumberland, Maryland had not submitted a draw, they delayed filing their required reports. Effect: The City of Cumberland, Maryland is not in compliance with the reporting requirements as stipulated in the Uniform Guidance. Context: During the course of our single audit testing procedures, we noted that the City of Cumberland, Maryland’s first quarter PR29 report that was due on October 30, 2022 for the period of July 1, 2022 through September 30, 2022 was submitted on December 14, 2022. Auditors’ Recommendations: We recommend that the City of Cumberland, Maryland communicate effectively with all staff to emphasize the importance of promptly submitting financial information to the federal agencies in a timely manner. This will ensure that the required quarterly financial reports are filed timely as stipulated by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The City understands the recommendation and has enhanced its procedures for the Community Development Block Grant Program to specifically state the requirement for the PR29 Cash on Hand Quarterly Report to be submitted no later than 30 days following each completed quarter and communicated this requirement to the City's finance department and Senior Community Development Specialist. These recommendations were implemented in fiscal year 2024. Identification of a Repeat Finding: This finding was not a finding in FY 22.