Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: COVID-19 Community Development Block Grants
Assistance Listing Number: 14.228
Federal Award Identification Number and Year: B-20-DW-27-0001, 2023
Pass-Through Agency: Minnesota Department of Employment and Economic Development, Business and Community Development Division
Pass-Through Number: B-20-DW-27-0001
Compliance Requirement Affected: Reporting
Award Period: Year Ended December 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria or Specific Requirement: Recipients of $150,000 or more of grant funds must submit, no later than 7 days after the end of each calendar quarter, a quarterly report to the State. Quarterly reports mush be in accordance with reporting requirements set forth in section 15011 of the CARES Act. The Grantee will monitor the activities of the sub-recipient according to 2 CFR §200.303 and 2 CFR §200.331 as necessary to ensure that the sub-award is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the sub-award; and that sub-award performance goals are achieved. This includes reviewing financial and programmatic reports required by the pass-through entity.
Condition: Proper records were not retained for reports and there was no oversight by County management of the reports being submitted by the subrecipient to the State.
Questioned Costs: None noted.
Context: For one of two quarterly reports tested, there was no record on file for the report that was submitted. For one of two quarterly reports tested, the report was not submitted by the deadline listed in the grant agreement. For all reports, it was noted that there was no review by County management of the reports submitted by the subrecipient and the County received a copy of the report at the same time as the submission was completed.
Cause: Insufficient management oversight.
Effect: Ineligible costs could be reported.
Repeat Finding: No.
Recommendation: We recommend that the County reviews their policies to ensure reporting requirements are met including a review of the subrecipient reports prior to submission.
Views of responsible officials: There is no disagreement with the audit finding.