Finding Text
Material Weakness- Internal Controls over Reporting and Noncompliance
Department of Housing and Urban Development - Direct Program - CDBG Entitlement Grants Cluster-ALN 14.218 - Program Year 2023
Criteria- 2 CFR section 200.303 - Internal Controls of the Uniform Guidance states that the non-federal entity must (a) establish and maintain effective internal controls over federal award that provides reasonable assurance that the non-federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in "Standards in Internal Control in the Federal Government" issued by the Comptroller General of the United States of the "Internal Control by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)".
2 CFR Part 170 requires non-federal entities making first-tier subawards of federal funding to comply with the reporting requirements of the Federal Funding Accountability and Transparency Act of 2006 (FFATA) (Public Law 109-282), as amended by section 6202 of Public Law 110-252. Compliance with FFATA requires prime recipients, to report certain information about subawards to the FFATA Subaward Reporting System (FSRS) by the end of the month, plus 30 days, in which the award is made.
Condition- The County did not report required information about subawards made under Assistance Listing No. 14.218 to the FSRS as required by FFATA within the timeline required. There were 7 subawards not report representing $2,417,617 in total.
Cause/ Effect - The County did no have internal controls in place to ensure accurate and timely subaward information is reported to the FSRS.
Questioned Costs- None
Auditor's Recommendation - We recommend that the County have policies in place to ensure information si report to the FSRS as required by FFATA.
Management Response - See Corrective Action Plan Letter