Audit 305307

Criteria The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires payments for expenditures to be disbursed within three working days of the receipt of the LCDBG funds. Condition The City did not disburse the funds in a timely manner. Cause There were inadequate policies and procedures in place to ensure that the disbursements were made timely. Effect The City did not comply with the grant agreement regarding timely disbursement of LCDGB funds. Context All seven disbursements were selected for testing. The test found that two of the disbursements were not paid withing three working days of the receipt of the LCDBG funds. Recommendation Adequate policies and procedures should be implemented to ensure compliance with the grant agreement regarding timely disbursement of funds. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures that will ensure the timely disbursement of LCDBG funds.

Criteria The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires that funds from LCDBG contracts be deposited into separate non-interest bearing accounts. Condition The City deposited grant funds for the current LCDBG contract into a clearance account. Cause The City was not aware that the clearance account was not allowed to be used for LCDBG funds. Effect The City did not comply with the grant agreement regarding the use of a separate bank account. Recommendation The City should implement policies and procedures to ensure that separate accounts are utilized for LCDBG funds. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure that separate accounts will be utilized.

Criteria Costs charged to federal grant programs must follow the Uniform Guidance when determining if a cost is allowable under the program. One of the requirements is that a cost can only be funded by one program. Condition The City used grant funds to pay expenditures that were already requested for reimbursement from the LCDBG grant and Clean Water State Revolving Funds. Cause The City did not have proper controls in place to ensure that expenditures were not paid by multiple federal programs. Effect The City utilized federal funds to pay for expenditures that had already been requested for reimbursement from other federal programs. Context A sample of 18 disbursements were selected for audit from a population of 48 disbursements. The test found that three disbursements had already been charged to other federal programs. It was determined that $339,904 was charged to other federal programs and are considered questioned costs. Recommendation The City should implement policies and procedures to ensure that expenditures are not charged to multiple federal programs. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure that expenditures are only charged to one federal program.

Criteria The Uniform Guidance requires a grant recipient to establish and maintain effective controls in order to ensure compliance with the federal award regulations, statutes, and terms and conditions of the grant. Condition The City did not obtain bids for the purchase of equipment totaling $268,640 as required. Cause The City did not have proper controls in place to ensure that expenditures were properly procured. Effect The City did not comply with procurement requirements for the federal program. Context A sample of 18 disbursements were selected for audit from a population of 48 disbursements. The test found that one disbursement was not properly procured. This resulted in questioned costs of $268,640. Recommendation The City should implement policies and procedures to ensure compliance with procurement. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure compliance.

Criteria The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires payments for expenditures to be disbursed within three working days of the receipt of the LCDBG funds. Condition The City did not disburse the funds in a timely manner. Cause There were inadequate policies and procedures in place to ensure that the disbursements were made timely. Effect The City did not comply with the grant agreement regarding timely disbursement of LCDGB funds. Context All seven disbursements were selected for testing. The test found that two of the disbursements were not paid withing three working days of the receipt of the LCDBG funds. Recommendation Adequate policies and procedures should be implemented to ensure compliance with the grant agreement regarding timely disbursement of funds. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures that will ensure the timely disbursement of LCDBG funds.

Criteria The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires that funds from LCDBG contracts be deposited into separate non-interest bearing accounts. Condition The City deposited grant funds for the current LCDBG contract into a clearance account. Cause The City was not aware that the clearance account was not allowed to be used for LCDBG funds. Effect The City did not comply with the grant agreement regarding the use of a separate bank account. Recommendation The City should implement policies and procedures to ensure that separate accounts are utilized for LCDBG funds. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure that separate accounts will be utilized.

Criteria Costs charged to federal grant programs must follow the Uniform Guidance when determining if a cost is allowable under the program. One of the requirements is that a cost can only be funded by one program. Condition The City used grant funds to pay expenditures that were already requested for reimbursement from the LCDBG grant and Clean Water State Revolving Funds. Cause The City did not have proper controls in place to ensure that expenditures were not paid by multiple federal programs. Effect The City utilized federal funds to pay for expenditures that had already been requested for reimbursement from other federal programs. Context A sample of 18 disbursements were selected for audit from a population of 48 disbursements. The test found that three disbursements had already been charged to other federal programs. It was determined that $339,904 was charged to other federal programs and are considered questioned costs. Recommendation The City should implement policies and procedures to ensure that expenditures are not charged to multiple federal programs. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure that expenditures are only charged to one federal program.

Criteria The Uniform Guidance requires a grant recipient to establish and maintain effective controls in order to ensure compliance with the federal award regulations, statutes, and terms and conditions of the grant. Condition The City did not obtain bids for the purchase of equipment totaling $268,640 as required. Cause The City did not have proper controls in place to ensure that expenditures were properly procured. Effect The City did not comply with procurement requirements for the federal program. Context A sample of 18 disbursements were selected for audit from a population of 48 disbursements. The test found that one disbursement was not properly procured. This resulted in questioned costs of $268,640. Recommendation The City should implement policies and procedures to ensure compliance with procurement. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure compliance.

Criteria The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires payments for expenditures to be disbursed within three working days of the receipt of the LCDBG funds. Condition The City did not disburse the funds in a timely manner. Cause There were inadequate policies and procedures in place to ensure that the disbursements were made timely. Effect The City did not comply with the grant agreement regarding timely disbursement of LCDGB funds. Context All seven disbursements were selected for testing. The test found that two of the disbursements were not paid withing three working days of the receipt of the LCDBG funds. Recommendation Adequate policies and procedures should be implemented to ensure compliance with the grant agreement regarding timely disbursement of funds. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures that will ensure the timely disbursement of LCDBG funds.

Criteria The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires that funds from LCDBG contracts be deposited into separate non-interest bearing accounts. Condition The City deposited grant funds for the current LCDBG contract into a clearance account. Cause The City was not aware that the clearance account was not allowed to be used for LCDBG funds. Effect The City did not comply with the grant agreement regarding the use of a separate bank account. Recommendation The City should implement policies and procedures to ensure that separate accounts are utilized for LCDBG funds. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure that separate accounts will be utilized.

Criteria Costs charged to federal grant programs must follow the Uniform Guidance when determining if a cost is allowable under the program. One of the requirements is that a cost can only be funded by one program. Condition The City used grant funds to pay expenditures that were already requested for reimbursement from the LCDBG grant and Clean Water State Revolving Funds. Cause The City did not have proper controls in place to ensure that expenditures were not paid by multiple federal programs. Effect The City utilized federal funds to pay for expenditures that had already been requested for reimbursement from other federal programs. Context A sample of 18 disbursements were selected for audit from a population of 48 disbursements. The test found that three disbursements had already been charged to other federal programs. It was determined that $339,904 was charged to other federal programs and are considered questioned costs. Recommendation The City should implement policies and procedures to ensure that expenditures are not charged to multiple federal programs. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure that expenditures are only charged to one federal program.

Criteria The Uniform Guidance requires a grant recipient to establish and maintain effective controls in order to ensure compliance with the federal award regulations, statutes, and terms and conditions of the grant. Condition The City did not obtain bids for the purchase of equipment totaling $268,640 as required. Cause The City did not have proper controls in place to ensure that expenditures were properly procured. Effect The City did not comply with procurement requirements for the federal program. Context A sample of 18 disbursements were selected for audit from a population of 48 disbursements. The test found that one disbursement was not properly procured. This resulted in questioned costs of $268,640. Recommendation The City should implement policies and procedures to ensure compliance with procurement. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure compliance.

Criteria The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires payments for expenditures to be disbursed within three working days of the receipt of the LCDBG funds. Condition The City did not disburse the funds in a timely manner. Cause There were inadequate policies and procedures in place to ensure that the disbursements were made timely. Effect The City did not comply with the grant agreement regarding timely disbursement of LCDGB funds. Context All seven disbursements were selected for testing. The test found that two of the disbursements were not paid withing three working days of the receipt of the LCDBG funds. Recommendation Adequate policies and procedures should be implemented to ensure compliance with the grant agreement regarding timely disbursement of funds. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures that will ensure the timely disbursement of LCDBG funds.

Criteria The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires that funds from LCDBG contracts be deposited into separate non-interest bearing accounts. Condition The City deposited grant funds for the current LCDBG contract into a clearance account. Cause The City was not aware that the clearance account was not allowed to be used for LCDBG funds. Effect The City did not comply with the grant agreement regarding the use of a separate bank account. Recommendation The City should implement policies and procedures to ensure that separate accounts are utilized for LCDBG funds. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure that separate accounts will be utilized.

Criteria Costs charged to federal grant programs must follow the Uniform Guidance when determining if a cost is allowable under the program. One of the requirements is that a cost can only be funded by one program. Condition The City used grant funds to pay expenditures that were already requested for reimbursement from the LCDBG grant and Clean Water State Revolving Funds. Cause The City did not have proper controls in place to ensure that expenditures were not paid by multiple federal programs. Effect The City utilized federal funds to pay for expenditures that had already been requested for reimbursement from other federal programs. Context A sample of 18 disbursements were selected for audit from a population of 48 disbursements. The test found that three disbursements had already been charged to other federal programs. It was determined that $339,904 was charged to other federal programs and are considered questioned costs. Recommendation The City should implement policies and procedures to ensure that expenditures are not charged to multiple federal programs. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure that expenditures are only charged to one federal program.

Criteria The Uniform Guidance requires a grant recipient to establish and maintain effective controls in order to ensure compliance with the federal award regulations, statutes, and terms and conditions of the grant. Condition The City did not obtain bids for the purchase of equipment totaling $268,640 as required. Cause The City did not have proper controls in place to ensure that expenditures were properly procured. Effect The City did not comply with procurement requirements for the federal program. Context A sample of 18 disbursements were selected for audit from a population of 48 disbursements. The test found that one disbursement was not properly procured. This resulted in questioned costs of $268,640. Recommendation The City should implement policies and procedures to ensure compliance with procurement. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure compliance.