Finding 978370 (2023-002)

2023-002 Policies and Procedures for Federal Awards Federal Agency U.S. Department of Housing and Urban Development Federal Assistance Listing Numbers 14.128 – Mortgage Insurance - Hospitals Criteria [ ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Recipients of federal awards should maintain written policies and procedures for the tracking and usage of federal awards that provide assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award. Condition The District did not have written policies and procedures to identify federal award requirements and ensure that the District was in compliance with these requirements. Context This finding appears to be a systemic problem. Cause The District did not have an internal control process in place to ensure continued compliance with the federal award. Effect The lack of policies increases the risk that noncompliance may not be corrected in a timely manner. Recommendation We recommend the District implement policies and procedures for the tracking and usage of federal awards that conform to federal regulations and compliance requirements. Views of responsible officials and planned corrective actions Management is in agreement with the finding.