Finding 614415 (2022-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-04-27

AI Summary

  • Core Issue: The Department of Housing and Urban Development's Section 242 program had a material weakness in internal controls, leading to missed report submissions.
  • Impacted Requirements: The Organization failed to file the annual budget and other required reports on time, violating OMB Compliance Supplement guidelines.
  • Recommended Follow-Up: Enhance internal control policies to ensure timely and accurate filing of all required reports.

Finding Text

2022-004 Department of Housing and Urban Development Federal Financial Assistance Listing/CFDA #14.128 Section 242 ? Mortgage Insurance - Hospitals Reporting Material Weakness in Internal Control Over Compliance Criteria: The OMB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: The Section 242 ? Mortgage Insurance - Hospitals Program requires quarterly reports and certain annual reports. For the year ended July 31, 2022, the Organization failed to file the annual budget prior to the start of the year. Cause: There was turnover of key financial personnel during 2021 and 2022. The Organization did not follow their internal control policy to ensure the required reports were filed. Effect: The required reports were not submitted in accordance with loan requirements. Questioned Costs: None reported. Context: There were a total of eight reports required to be submitted for the year ended July 31, 2022. Three were selected for testing. Of the three selected, one was not submitted as required. Through additional inquiry, there were no other reports identified as not being submitted. Repeat Finding from Prior Years: Yes, Finding 2021-004. Recommendation: We recommend the Organization enhance internal control policies to ensure required reports are filed timely and accurately. Views of Responsible Officials: Management agrees with the finding.

Categories

Matching / Level of Effort / Earmarking HUD Housing Programs Material Weakness Reporting

Other Findings in this Audit

  • 37972 2022-003
    Material Weakness Repeat
  • 37973 2022-004
    Material Weakness Repeat
  • 37974 2022-005
    Significant Deficiency Repeat
  • 37975 2022-006
    Significant Deficiency Repeat
  • 37976 2022-007
    Significant Deficiency
  • 614414 2022-003
    Material Weakness Repeat
  • 614416 2022-005
    Significant Deficiency Repeat
  • 614417 2022-006
    Significant Deficiency Repeat
  • 614418 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.128 Mortgage Insurance_hospitals $13.44M
93.155 Rural Health Research Centers $256,978
93.697 Covid-19 Testing for Rural Health Clinics $200,000
21.027 Coronavirus State and Local Fiscal Recovery Funds $105,606