COUNTY OF ARAPAHOE IN THE STATE OF COLORADO

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Home Investment Partnerships Program and COVID-19 Home Investment Partnerships Program Assistance Listing Numbers: 14.239 Award Period: January 1, 2023 through December 31, 2023 Award Number: M-18-DC-08-0221, M-19-DC-08-0221, M-20-DC-08-0221, M-21-DC-08-0221, M-22-DC- 08-0221, and M-23-DC-08-0221 Compliance Requirement: Special Tests and Provisions – Housing Quality Standards Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Per 24 CFR section 92.504(d), during the period of affordability, the participating jurisdiction (the County) is required to perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners. Condition: The County did not conduct the required inspections of the HOME-assisted rental housing units during the year ended December 31, 2023. Questioned costs: None Context: Inspections can be required for as much as 20 years and occur at a frequency from one to three years, depending on the number of units in the building. Cause: Personnel issues led to the County not completing the inspections. Effect: HOME-assisted rental units could be out of compliance with HUD regulations which can impact tenants. Repeat Finding: No. Recommendation: We recommend the County continue to train personnel so that the inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.