2021 Annual Comprehensive Financial Report

CITY OF GREENSBORO, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2021

Section III.

Federal Award Findings and Questioned Costs

U.S. Department of Treasury Program Name: Emergency Rental Assistance Program Federal Assistance Listing Number: 21.023 Significant Deficiency – Subrecipient Monitoring Finding 2021-001

Criteria: An effective system of internal control contemplates that management properly review and assess the subrecipient through monitoring procedures and document the results of the procedures performed. This includes ensuring the subrecipient is following all direct and material compliance requirements applicable to each federal program. Condition: It was discovered while testing the program that the City did not retain sufficient documentation to evidence their review of the applicable compliance requirements of the federal program for subrecipients. Additionally, for 12 out of 60 participants reviewed by the City and selected for testing, evidence of income was either improperly supported per internal policies or incorrectly calculated. Eligibility was not affected due to the noted errors. Effect: The subrecipient could provide federal funds to ineligible individuals resulting in questioned costs that could go undetected by the City. Questioned Costs: No questioned costs were identified as a result of our procedures. Cause: The City did not set sufficient procedures to ensure proper documentation was retained. Recommendation: We recommend the City develop a formal policy in relation to subrecipient monitoring including the review procedures to be performed, the timing and frequency of the monitoring(s) and a formal response to the subrecipient regarding the results of their procedures. The City should further formally document their risk assessment of the subrecipient to support the nature, timing and extent of testing of the subrecipient. Views of responsible officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the corrective action plan. Corrective Action Plan: See Corrective Action Plan prepared by the City.

Section IV.

State Award Findings and Questioned Costs

None reported.

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