Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218 Federal Award Identification Number and Year: B-19-MC-55-0017, 2019; B-20-MC-55-0017, 2020; B-20-MW-55-0017, 2020; B-21-MC-55-0017, 2021; B-22MC-55-0017, 2022 Award Period: 1/1/2019 ? 9/1/2029 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires the City to implement and maintain a system of internal controls over federal grants. Condition: The City has not formally designated an individual to review and approve the reports or the environmental reviews nor clarify how the review and approval was to be documented, to ensure the compliance requirements are completed in accordance with the grant requirements. Questioned costs: None Context: The City did not have procedures requiring documentation of the review and approval by an individual other than the preparer of all required annual reports and the environmental review determination form. Cause: The City had not performed a periodic evaluation of the internal controls surrounding the grant program to identify the lack of documentation indicating a review of the annual reporting and environmental review forms had been performed. Effect: Without documenting the review, there is a risk that the reports were not reviewed prior to submission by the City and could contain an error. Repeat Finding: Repeat of Finding 2021-002 Recommendation: We recommend the City review the various requirements of the CDBG grant program and identify individuals who can act as a reviewer and approver of the environmental review requirements. We also recommend the City document these procedures and internal controls as required by Uniform Guidance. Views of responsible officials: There is no disagreement with the audit finding.