Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

Federal Agency:

United States Department of Housing and Urban Development

Federal Program:

Community Development Block Grant State’s Program and Non-Entitlement Grants in Hawaii (14.228)

Federal Award Numbers:

B07-DC-36-001, B-08-DC-36-0001, B-09-DC-36001, B-10-DC-36001, B-11-DC- 36001, B-12-DC-36-0001, B-13-DC-36001, B-14-DC-36-001, B-15-DC-36001, B-16-DC-36001, B-17-DC-36001, and B-18-DC-36-0001

Federal Award Years:

2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018

State Agency:

Housing Trust Fund Corporation

Reference:

2019-038

Criteria Title 24 U.S. Code of Federal Regulations Part 570 (2 CFR 570), Community Development Block Grants , Section 570.489(e)(4) states that the State must report on the receipt and use of all program income (whether retained by units of general local government or paid to the State) in its annual performance and evaluation report. Additionally, Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , section 200.303(a) states the nonfederal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition The Housing Trust Fund Corporation (the Corporation) had policies and procedures in place to quantify and monitor program income received by its subrecipients for the fiscal year under audit. Subrecipients reported program income to the Corporation throughout the year; however, at the time of the submission of the Performance and Evaluation Report (PER), the Corporation had not received information from all subrecipients to accurately aggregate total program income. Therefore, the Performance and Evaluation Report (PER) submitted by the Corporation for the program year inaccurately reported $0 of program income for each grant. As of the end of the fiscal year, the Corporation had received all information from subrecipients and was able to determine the aggregate program income. Cause The condition found is due to the timing of the deadline for information to be reported by subrecipients being later than the deadline for submission of the PER. Possible Asserted Effect Failure to report program income prevents the United States Department of Housing and Urban Development from effectively monitoring the Corporation’s administration of Federal funds in accordance with federal statutes, regulations, and terms and conditions of federal awards.

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