FAC Explorer

Finding 977028 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-06-12
Audit: 308638
Organization: City of Portsmouth (OH)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The City of Portsmouth failed to document the required review of the PR29 Cash on Hand Quarterly Report, which is essential for compliance with federal reporting requirements.
  • Impacted Requirements: This finding highlights a significant deficiency in internal controls over compliance, specifically related to the Integrated Disbursement and Information System (IDIS) reporting obligations.
  • Recommended Follow-Up: The City should update its policies and procedures to ensure that all federal reporting requirements are clearly understood and documented moving forward.

Finding Text

Reference Number: 2023-001 Prior Year Finding: No Federal Agency: U.S. Department of Housing and Urban Development (HUD) Department: City of Portsmouth (the City) Federal Program: Community Development Block Grants/Entitlement Grants Assistance Listing: 14.218 Federal Award Identification Number and Year: None, 2018, 2019, 2020 Pass-Through Entity: N/A Award Number and Period: B-18-MC-51-0018 (7/1/18-9/1/26) B-19-MC-51-0018 (7/1/19-9/1/27) B-20-MC-51-0018 (7/1/20-9/1/28) Compliance Requirement: Reporting Type of Finding Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance – Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) – Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee’s program year. Section IV.B.2.(c) of the CDBG-CV Notice reiterated the waiver authorized by a May 7, 2020, HUD memorandum (found in the waiver information link noted in IV. Other Information, below) that waives the 90-day requirement for program year 2019 annual performance and evaluation reports, subject to the condition that within 180 days after the close of a jurisdiction’s program year that it submit its performance report. Auditors are only expected to test information extracted from IDIS in the following system-generated reports: PR29 – CDBG Cash on Hand Quarterly Report Control – Per 2 CFR section 200.303(a), a 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. These internal controls should comply with the guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control-Integrated Framework," issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition The City of Portsmouth did not document their review of the PR29 Cash on Hand Quarterly Report. Auditors are required to tests specific information extracted from HUD’s IDIS system, the PR29 is one of the identified reports. The City was not aware of that review of the report was a requirement. Context: Evidence of review for one report was not provided. Questioned costs: None noted. Cause: The City was not aware that review of the report was a requirement. Effect: The City was unable to support compliance with the requirements. Recommendation: We recommend that the City review its policies and procedures to ensure that compliance with federal reporting requirements is evident. Views of responsible officials: Management agrees with the finding.

Categories

Subrecipient Monitoring HUD Housing Programs Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 400586 2023-001
    Significant Deficiency
  • 400587 2023-001
    Significant Deficiency
  • 400588 2023-001
    Significant Deficiency
  • 400589 2023-001
    Significant Deficiency
  • 400590 2023-001
    Significant Deficiency
  • 400591 2023-002
    Material Weakness
  • 400592 2023-002
    Material Weakness
  • 400593 2023-003
    Significant Deficiency
  • 400594 2023-003
    Significant Deficiency
  • 400595 2023-004
    Material Weakness
  • 400596 2023-004
    Material Weakness
  • 400597 2023-004
    Material Weakness
  • 400598 2023-004
    Material Weakness
  • 400599 2023-004
    Material Weakness
  • 977029 2023-001
    Significant Deficiency
  • 977030 2023-001
    Significant Deficiency
  • 977031 2023-001
    Significant Deficiency
  • 977032 2023-001
    Significant Deficiency
  • 977033 2023-002
    Material Weakness
  • 977034 2023-002
    Material Weakness
  • 977035 2023-003
    Significant Deficiency
  • 977036 2023-003
    Significant Deficiency
  • 977037 2023-004
    Material Weakness
  • 977038 2023-004
    Material Weakness
  • 977039 2023-004
    Material Weakness
  • 977040 2023-004
    Material Weakness
  • 977041 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $9.50M
84.010 Title 1 Grants to Local Educational Agencies $7.11M
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $4.82M
84.027 Special Education Grants to States $3.89M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $2.40M
93.558 Temporary Assistance for Needy Families $1.39M
93.778 Medical Assistance Program $1.27M
93.667 Social Services Block Grant $1.13M
93.659 Adoption Assistance $995,193
14.218 Community Development Block Grants/entitlement Grants $981,316
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $810,216
93.658 Foster Care Title IV-E $691,732
84.048 Career and Technical Education -- Basic Grants to States $546,969
16.575 Crime Victim Assistance $514,142
84.424 Student Support and Academic Enrichment Program $508,497
14.267 Continuum of Care Program $385,158
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $330,328
84.041 Impact Aid $294,804
93.568 Low-Income Home Energy Assistance $285,529
12.999 Rotc $285,359
14.239 Home Investment Partnerships Program $283,339
84.047 Trio Upward Bound $282,370
84.002 Adult Education - Basic Grants to States $229,621
10.559 Summer Food Service Program for Children $207,400
93.958 Block Grants for Community Mental Health Services $191,368
84.173 Special Education Preschool Grants $191,262
93.959 Block Grants for Prevention and Treatment of Substance Abuse $160,581
84.287 Twenty-First Century Community Learning Centers $153,222
97.042 Emergency Management Performance Grants $126,944
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $121,458
93.556 Marylee Allen Promoting Safe and Stable Families Program $80,313
93.150 Projects for Assistance in Transition From Homelessness (path) $60,431
10.558 Child and Adult Care Food Program $56,235
97.067 Homeland Security Grant Program $45,456
93.788 Opioid Str $40,000
84.425 Covid-19 - Education Stabilization Fund $39,682
84.377 School Improvement Grants $39,649
93.472 Title IV-E Prevention Program $20,510
84.184 School Safely National Activities $17,910
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $17,771
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $17,065
16.607 Bulletproof Vest Partnership Program $16,901
84.365 English Language Acquisition State Grants $16,868
84.196 Education for Homeless Children and Youth $16,214
93.767 Children's Health Insurance Program $11,140
93.747 Covid-19 - Elder Abuse Prevention Interventions Program $9,438
20.600 State and Community Highway Safety $7,866
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $6,285
10.649 Covid-19 - Pandemic Ebt Administrative Costs $5,950
93.603 Adoption and Legal Guardianship Incentive Payments $4,469
20.607 Alcohol Open Container Requirements $2,975
20.205 Highway Planning and Construction $2,553
93.645 Stephanie Tubbs Jones Child Welfare Services Program $2,503
93.575 Child Care and Development Block Grant $1,497
93.599 Chafee Education and Training Vouchers Program (etv) $599
21.019 Coronavirus Relief Fund $571
93.090 Guardianship Assistance $543
16.738 Edward Byrne Memorial Justice Assistance Grant Program $348