Community Development Block Grant – AL# 14.218, Controls over
Reporting
Condition: ASP included an amount for reimbursement to the City of Johnson City, TN that had
not been paid and was not paid promptly, resulting in ASP receiving funds in advance from the
City, which is in violation of the grant agreement ASP has with the City.
Criteria: The grant agreement with the City states that in no event shall the City provide advance
funding to their sub-recipient.
Cause: ASP failed to pay an invoice that was submitted for reimbursement prior to the receipt of
the reimbursement from the City. ASP’s controls over the process of reconciling reimbursement
requests and payables from their general ledger to the request were not sufficient to prevent this
issue from occurring, resulting in the error.
Effect: ASP violated their agreement with the City and received funds in advance.
Context: An invoice recorded in their purchasing tracking software was not subsequently recorded
in their financial software allowing for request for reimbursement to happen for an invoice that
was not promptly paid. Controls were not sufficient to prevent this from occurring.
Questioned Costs: N/A
Recommendation: ASP should pay all invoices submitted for reimbursement prior to receipt of
the reimbursement from the City in order to stay in compliance with their agreement with the
City. ASP should also reconcile between the purchase tracking software and the general ledger to
ensure that all purchases are promptly recorded in accounts payable to be paid promptly. ASP
should ensure that controls are implemented to help prevent reoccurrence of this issue in the
future.
Repeat Finding: No.
Management’s Response: ASP has policies and procedures in place to ensure all reimbursable
expenditures are allowable, paid and clear the bank before submitting for reimbursement.
However, on one occasion, ASP inadvertently submitted an allowable and paid expenditure of
$32.78 that had not cleared the bank. ASP has since repaid this amount and the replacement
check has been cashed by the vendor. In the future, ASP will ensure that all expenditures are
allowable, paid, and clear the bank before submitting the reimbursement.
Community Development Block Grant – AL# 14.218, Reporting
Condition: ASP, a sub-recipient, did not submit their Quarter 3 report in a timely manner, which
is in violation of the grant agreement ASP has with the pass-through entity, City of Johnson City,
TN.
Criteria: The grant agreement with the City requires an annual report, a projected expenditures
report, and four quarterly reports be submitted by ASP in a timely manner.
Cause: ASP failed to submit their Quarter 3 report before it was due.
Effect: ASP violated their agreement with the City and submitted their report late.
Context: The Quarter 3 report required by the grant agreement between ASP and the City of
Johnson City was not submitted timely.
Questioned Costs: N/A
Recommendation: ASP should submit all required reports in a timely manner per the grant
agreement. Additionally, ASP should review controls and procedures in place to ensure that there
are policies to help aid with timely report completion.
Repeat Finding: No.
Management’s Response: ASP is currently engaged in home rehabilitation projects under an
agreement with Johnson City CDBG. This agreement stipulates that quarterly reports must be
submitted by the 15th of the month following the quarter. Despite completing the required work
and accurately tracking expenses, the report due on 10/16/2023 was submitted a little over 2
weeks late on 11/2/2023 due to an omission by staff. However, ASP has
maintained communication with the grant administrator at Johnson City and has remained
compliant with all other aspects of the contract. The delayed submission of the quarterly report
has not impacted ASP’s favorable standing with the city, and we have promptly rectified the
situation, ensuring full compliance with the agreement
Community Development Block Grant – AL# 14.218, Controls over
Reporting
Condition: ASP included an amount for reimbursement to the City of Johnson City, TN that had
not been paid and was not paid promptly, resulting in ASP receiving funds in advance from the
City, which is in violation of the grant agreement ASP has with the City.
Criteria: The grant agreement with the City states that in no event shall the City provide advance
funding to their sub-recipient.
Cause: ASP failed to pay an invoice that was submitted for reimbursement prior to the receipt of
the reimbursement from the City. ASP’s controls over the process of reconciling reimbursement
requests and payables from their general ledger to the request were not sufficient to prevent this
issue from occurring, resulting in the error.
Effect: ASP violated their agreement with the City and received funds in advance.
Context: An invoice recorded in their purchasing tracking software was not subsequently recorded
in their financial software allowing for request for reimbursement to happen for an invoice that
was not promptly paid. Controls were not sufficient to prevent this from occurring.
Questioned Costs: N/A
Recommendation: ASP should pay all invoices submitted for reimbursement prior to receipt of
the reimbursement from the City in order to stay in compliance with their agreement with the
City. ASP should also reconcile between the purchase tracking software and the general ledger to
ensure that all purchases are promptly recorded in accounts payable to be paid promptly. ASP
should ensure that controls are implemented to help prevent reoccurrence of this issue in the
future.
Repeat Finding: No.
Management’s Response: ASP has policies and procedures in place to ensure all reimbursable
expenditures are allowable, paid and clear the bank before submitting for reimbursement.
However, on one occasion, ASP inadvertently submitted an allowable and paid expenditure of
$32.78 that had not cleared the bank. ASP has since repaid this amount and the replacement
check has been cashed by the vendor. In the future, ASP will ensure that all expenditures are
allowable, paid, and clear the bank before submitting the reimbursement.
Community Development Block Grant – AL# 14.218, Reporting
Condition: ASP, a sub-recipient, did not submit their Quarter 3 report in a timely manner, which
is in violation of the grant agreement ASP has with the pass-through entity, City of Johnson City,
TN.
Criteria: The grant agreement with the City requires an annual report, a projected expenditures
report, and four quarterly reports be submitted by ASP in a timely manner.
Cause: ASP failed to submit their Quarter 3 report before it was due.
Effect: ASP violated their agreement with the City and submitted their report late.
Context: The Quarter 3 report required by the grant agreement between ASP and the City of
Johnson City was not submitted timely.
Questioned Costs: N/A
Recommendation: ASP should submit all required reports in a timely manner per the grant
agreement. Additionally, ASP should review controls and procedures in place to ensure that there
are policies to help aid with timely report completion.
Repeat Finding: No.
Management’s Response: ASP is currently engaged in home rehabilitation projects under an
agreement with Johnson City CDBG. This agreement stipulates that quarterly reports must be
submitted by the 15th of the month following the quarter. Despite completing the required work
and accurately tracking expenses, the report due on 10/16/2023 was submitted a little over 2
weeks late on 11/2/2023 due to an omission by staff. However, ASP has
maintained communication with the grant administrator at Johnson City and has remained
compliant with all other aspects of the contract. The delayed submission of the quarterly report
has not impacted ASP’s favorable standing with the city, and we have promptly rectified the
situation, ensuring full compliance with the agreement