Finding Text
2023-002 Program: Community Development Block Grants/Entitlement Grants Cluster
Financial Assistance Listing Number: 14.218
Federal Agency: U.S. Department of Housing and Urban Development
Award Year: All
Grant Award Number: All
Compliance Requirements: Reporting
Type of Finding: Material Weakness in Internal Control over Compliance
Criteria:
Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This includes internal controls over maintaining records of the preparer and approver of required reports.
Condition:
We identified three (3) instances in which the City did not retain evidence to document the individual who reviewed and approved the required reports prior to submission. This consisted of two (2) financial reports and one (1) special report for the Federal Funding Accountability and Transparency Act (FFATA).
Cause:
The City's procedures did not include documenting the review and approval of the reports prior to submission.
Effect:
Ineffective controls over this area of compliance could result in reports that are inaccurate or incomplete being submitted or disclosed to the granting agency.
Questioned Costs:
No questioned costs were identified as a result of our audit procedures.
Context/Sampling:
FFATA - Sampling was not used. We selected all FFATA reports (1) for testing. The condition noted above was identified during our procedures over reporting testing.
Cash on Hand Reports - Sampling was used. We selected two (2) of four (4) Cash on Hand reports for testing. The condition noted above was identified during our procedures over reporting testing.
Repeat Finding from the Prior Year(s):
No.
Recommendation:
We recommend that the City revise its procedures to include evidence to document the individual who reviewed and approved required reports prior to submission.
View of Responsible Official and Planned Corrective Actions
See separate corrective action plan.