Audit 340608

FY End
2023-06-30
Total Expended
$19.05M
Findings
32
Programs
61
Organization: County of Trinity (CA)
Year: 2023 Accepted: 2025-01-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
520798 2023-002 Material Weakness - M
520799 2023-002 Material Weakness - M
520800 2023-002 Material Weakness - M
520801 2023-002 Material Weakness - M
520802 2023-002 Material Weakness - M
520803 2023-003 Material Weakness - L
520804 2023-003 Material Weakness - L
520805 2023-003 Material Weakness - L
520806 2023-003 Material Weakness - L
520807 2023-003 Material Weakness - L
520808 2023-004 Material Weakness Yes E
520809 2023-004 Material Weakness Yes E
520810 2023-004 Material Weakness Yes E
520811 2023-004 Material Weakness Yes E
520812 2023-004 Material Weakness Yes E
520813 2023-005 Material Weakness Yes E
1097240 2023-002 Material Weakness - M
1097241 2023-002 Material Weakness - M
1097242 2023-002 Material Weakness - M
1097243 2023-002 Material Weakness - M
1097244 2023-002 Material Weakness - M
1097245 2023-003 Material Weakness - L
1097246 2023-003 Material Weakness - L
1097247 2023-003 Material Weakness - L
1097248 2023-003 Material Weakness - L
1097249 2023-003 Material Weakness - L
1097250 2023-004 Material Weakness Yes E
1097251 2023-004 Material Weakness Yes E
1097252 2023-004 Material Weakness Yes E
1097253 2023-004 Material Weakness Yes E
1097254 2023-004 Material Weakness Yes E
1097255 2023-005 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnership Program (outstanding Loan) $2.45M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds Under the American Rescue Plan Act $2.32M Yes 0
93.558 Temporary Assistance for Needy Families $2.31M - 0
93.659 Adoption Assistance $1.75M Yes 0
14.228 Community Development Block Grants/entitlement Grants (outstanding Loan) $890,336 Yes 3
93.658 Arra-Foster Care Title IV-E $836,756 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $649,372 - 0
21.032 Local Assistance and Tribal Consistency Fund $450,000 - 0
20.509 Formula Grants for Rural Areas Cares Act $437,786 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse (sapt) $432,887 - 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $374,570 - 0
93.268 Immunization Cooperative Agreements $257,382 - 0
93.958 Substance Abuse and Mental Health Services Administration (samsha) $233,764 - 0
93.323 Covid-19 Public Health Emergency Response - Elc Expansion & Strategy Totals $219,170 - 0
93.658 Foster Care Title IV-E $216,052 - 0
16.575 Crime Victim Witness Program $171,648 - 0
93.889 Hospital Preparedness Program (hpp) $153,606 - 0
93.563 Child Support Enforcement $149,374 - 0
20.509 Formula Grants for Rural Areas $130,747 - 0
10.923 Ewp Project 53220 $112,874 - 0
93.391 Cdc/public Health Emergency Preparedness - California Equitable Recovery Initiative $106,652 - 0
93.069 Public Health Emergency Preparedness Program (phep) $96,627 - 0
16.585 Adult Drug Treatment Court $93,067 - 0
15.532 Central Valley Improvement Act Title Xxxiv $72,664 - 0
16.922 Domestic Cannabis Eradication Supression Program (cep) $52,225 - 0
93.977 Cdc/public Health Emergency Preparedness - Dis Wfd $51,905 - 0
93.136 California Strengthening Public Health Initiative (tosc) $50,207 - 0
93.994 Maternal and Child Health Services Block Grant to the States $46,857 - 0
21.019 Covid-19 Community Development Block Grant Cv $40,776 - 0
97.042 Emergency Management Performance $40,198 - 0
93.667 Social Services Block Grant $39,200 - 0
97.036 Homeland Security Grant Program $32,563 - 0
93.354 Covid-19 Public Health Emergency Response - Wfd $31,962 - 0
21.019 Covid-19 Coronavirus Relief Fund (crrsaa) - Sabg Supplemental $31,554 - 0
20.616 Child Passenger Safety Program $31,303 - 0
93.959 Covid-19 Sabg Supplemental - Arpa $30,517 - 0
20.205 Highway Planning and Construction $29,207 - 0
93.778 Medical Assistance Programs $27,518 - 0
20.205 Emergency Relief Program $26,706 - 0
20.205 Hazzard Elimination Safety Program $24,531 - 0
93.590 Community Based Child Abuse Prevention Grants $22,779 - 0
93.674 Chafee Foster Care Independence Program $19,735 - 0
14.228 Community Development Block Grant $19,452 Yes 3
93.090 Guardianship Assistance $18,816 - 0
84.027 Special Education Grants (idea) $13,561 - 0
93.556 Promoting Safe and Stable Families $12,158 - 0
20.106 Corona Virus Aid, Relief and Economic Security Act $11,939 - 0
93.569 Community Services Block Grant - Food Bank Services $11,374 - 0
93.778 Medical Assistance Programs - Chdp $10,931 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $10,877 - 0
10.704 Usda Forest Service CO-Op Le Patrol Shasta Trinity Nf $9,025 - 0
10.704 Usda Forest Service CO-Op Le Patrol Six Rivers Nf $7,216 - 0
93.778 Medical Assistance Programs - Foster Care $6,793 - 0
93.967 California Strengthening Public Health Initiative (casphi) $4,270 - 0
93.767 Children's Health Insurance Program $4,044 - 0
97.067 Homeland Security Grant Program $3,662 - 0
20.106 Airport Improvement Program Faa $861 - 0
10.704 Usda Forest Service CO-Operative Le Controlled Substance Six Rivers Nf $773 - 0
93.778 Medical Assistance Programs - Foster Care Pmm&o $771 - 0
10.704 Usda Forest Service CO-Op Le Controlled Substance Shasta-Trinity $640 - 0
10.572 Wic - Farmer's Market Nutrition Program $190 - 0

Contacts

Name Title Type
WY2EGJM6FNK6 Christine Gaffney Auditee
5306238382 Brianne Wiese Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The County did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. Uniform Guidance §200.510(6) requires the County to disclose whether or not it elected to use the 10 percent de minimis cost rate that §200.414(f) allows for nonfederal entities that have never received a negotiated indirect cost rate. They calculate the information on the indirect cost against the salary and benefits and are reimbursed up to 25%. The accompanying schedule of expenditures of federal awards presents the activity of all federal awards programs of the County of Trinity for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Title: Assistance Listing Number (ALN) Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The County did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. Uniform Guidance §200.510(6) requires the County to disclose whether or not it elected to use the 10 percent de minimis cost rate that §200.414(f) allows for nonfederal entities that have never received a negotiated indirect cost rate. They calculate the information on the indirect cost against the salary and benefits and are reimbursed up to 25%. The Assistance Listing Numbers included in this report were determined based on the program name, review of grant or contract information, and the Office of Management and Budget’s Catalog of Federal Domestic Assistance.
Title: Loans with Continuing Compliance Requirements Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The County did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. Uniform Guidance §200.510(6) requires the County to disclose whether or not it elected to use the 10 percent de minimis cost rate that §200.414(f) allows for nonfederal entities that have never received a negotiated indirect cost rate. They calculate the information on the indirect cost against the salary and benefits and are reimbursed up to 25%. Outstanding federally-funded program loans, with a continuing compliance requirement, carried balances as of June 30, 2023 as follows: Outstanding Federal Awards Loans Expended ALN Federal Program June 30, 2023 June 30, 2023 Community Development Block Grant/ 14.228 States Program $ 890,336 $ 1,247,252 14.239 Home Investment Partnership Program 2,446,576 2,446,576
Title: Pass-Through Entities' Identifying Number Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The County did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. Uniform Guidance §200.510(6) requires the County to disclose whether or not it elected to use the 10 percent de minimis cost rate that §200.414(f) allows for nonfederal entities that have never received a negotiated indirect cost rate. They calculate the information on the indirect cost against the salary and benefits and are reimbursed up to 25%. When federal awards were received from a pass-through entity, the schedule of expenditures of federal awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the County determined that no identifying number is assigned for the program or the County was unable to obtain an identifying number from the pass-through entity.

Finding Details

Criteria: The County is required to perform monitoring activities on any funds that are passed down to subrecipients as listed in 2 C.F.R. section 200.332 including verification that the recipient is audited as required by 2 C.F.R. section 200.501. Condition: During our test for subrecipient monitoring, the County did not have documented monitoring processes for monitoring subrecipients. Additionally, for the two subrecipients that required single audits, the County did not obtain and review those single audit reports as required by the above referenced criteria. The County did review the subrecipients expenditures to ensure that those expenditures met the requirements of the subrecipient agreement. Questioned costs: None Context: The County is required to document and follow its monitoring process for subrecipients to ensure that the subrecipient is adhering to the terms of the agreement and to ensure that the subrecipient has designed and implemented effective internal controls that prevent noncompliance. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the requirement therefore did not complete it. Effect: Not following through on monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program expenditures reported by the County. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: The County is required to perform monitoring activities on any funds that are passed down to subrecipients as listed in 2 C.F.R. section 200.332 including verification that the recipient is audited as required by 2 C.F.R. section 200.501. Condition: During our test for subrecipient monitoring, the County did not have documented monitoring processes for monitoring subrecipients. Additionally, for the two subrecipients that required single audits, the County did not obtain and review those single audit reports as required by the above referenced criteria. The County did review the subrecipients expenditures to ensure that those expenditures met the requirements of the subrecipient agreement. Questioned costs: None Context: The County is required to document and follow its monitoring process for subrecipients to ensure that the subrecipient is adhering to the terms of the agreement and to ensure that the subrecipient has designed and implemented effective internal controls that prevent noncompliance. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the requirement therefore did not complete it. Effect: Not following through on monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program expenditures reported by the County. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: The County is required to perform monitoring activities on any funds that are passed down to subrecipients as listed in 2 C.F.R. section 200.332 including verification that the recipient is audited as required by 2 C.F.R. section 200.501. Condition: During our test for subrecipient monitoring, the County did not have documented monitoring processes for monitoring subrecipients. Additionally, for the two subrecipients that required single audits, the County did not obtain and review those single audit reports as required by the above referenced criteria. The County did review the subrecipients expenditures to ensure that those expenditures met the requirements of the subrecipient agreement. Questioned costs: None Context: The County is required to document and follow its monitoring process for subrecipients to ensure that the subrecipient is adhering to the terms of the agreement and to ensure that the subrecipient has designed and implemented effective internal controls that prevent noncompliance. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the requirement therefore did not complete it. Effect: Not following through on monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program expenditures reported by the County. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: The County is required to perform monitoring activities on any funds that are passed down to subrecipients as listed in 2 C.F.R. section 200.332 including verification that the recipient is audited as required by 2 C.F.R. section 200.501. Condition: During our test for subrecipient monitoring, the County did not have documented monitoring processes for monitoring subrecipients. Additionally, for the two subrecipients that required single audits, the County did not obtain and review those single audit reports as required by the above referenced criteria. The County did review the subrecipients expenditures to ensure that those expenditures met the requirements of the subrecipient agreement. Questioned costs: None Context: The County is required to document and follow its monitoring process for subrecipients to ensure that the subrecipient is adhering to the terms of the agreement and to ensure that the subrecipient has designed and implemented effective internal controls that prevent noncompliance. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the requirement therefore did not complete it. Effect: Not following through on monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program expenditures reported by the County. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: The County is required to perform monitoring activities on any funds that are passed down to subrecipients as listed in 2 C.F.R. section 200.332 including verification that the recipient is audited as required by 2 C.F.R. section 200.501. Condition: During our test for subrecipient monitoring, the County did not have documented monitoring processes for monitoring subrecipients. Additionally, for the two subrecipients that required single audits, the County did not obtain and review those single audit reports as required by the above referenced criteria. The County did review the subrecipients expenditures to ensure that those expenditures met the requirements of the subrecipient agreement. Questioned costs: None Context: The County is required to document and follow its monitoring process for subrecipients to ensure that the subrecipient is adhering to the terms of the agreement and to ensure that the subrecipient has designed and implemented effective internal controls that prevent noncompliance. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the requirement therefore did not complete it. Effect: Not following through on monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program expenditures reported by the County. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that only the program income report was submitted by the County, and it was submitted on an annual basis rather than the required quarterly basis, However, we did conclude that the program income report was complete and accurate. The other reports were not submitted by the County. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, only one report, the Program Income report was submitted and that was submitted for the entire year rather than on the required quarterly basis. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as a reporting checklist to ensure that reporting requirements are tracked and meet. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that only the program income report was submitted by the County, and it was submitted on an annual basis rather than the required quarterly basis, However, we did conclude that the program income report was complete and accurate. The other reports were not submitted by the County. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, only one report, the Program Income report was submitted and that was submitted for the entire year rather than on the required quarterly basis. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as a reporting checklist to ensure that reporting requirements are tracked and meet. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that only the program income report was submitted by the County, and it was submitted on an annual basis rather than the required quarterly basis, However, we did conclude that the program income report was complete and accurate. The other reports were not submitted by the County. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, only one report, the Program Income report was submitted and that was submitted for the entire year rather than on the required quarterly basis. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as a reporting checklist to ensure that reporting requirements are tracked and meet. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that only the program income report was submitted by the County, and it was submitted on an annual basis rather than the required quarterly basis, However, we did conclude that the program income report was complete and accurate. The other reports were not submitted by the County. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, only one report, the Program Income report was submitted and that was submitted for the entire year rather than on the required quarterly basis. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as a reporting checklist to ensure that reporting requirements are tracked and meet. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that only the program income report was submitted by the County, and it was submitted on an annual basis rather than the required quarterly basis, However, we did conclude that the program income report was complete and accurate. The other reports were not submitted by the County. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, only one report, the Program Income report was submitted and that was submitted for the entire year rather than on the required quarterly basis. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as a reporting checklist to ensure that reporting requirements are tracked and meet. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Home Investment Partnership Program loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure HOME loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 92.500 and 92.201(b). This requirement states the participating jurisdiction “has committed and expended HOME funds, as required, and has met HOME program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for one loan. Questioned costs: Known questioned costs of $99,570, the value of the loan. Context: HOME loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected six loans of a population of eighteen HOME Program loans to test continuing compliance and found that one of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-002 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the HOME grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: The County is required to perform monitoring activities on any funds that are passed down to subrecipients as listed in 2 C.F.R. section 200.332 including verification that the recipient is audited as required by 2 C.F.R. section 200.501. Condition: During our test for subrecipient monitoring, the County did not have documented monitoring processes for monitoring subrecipients. Additionally, for the two subrecipients that required single audits, the County did not obtain and review those single audit reports as required by the above referenced criteria. The County did review the subrecipients expenditures to ensure that those expenditures met the requirements of the subrecipient agreement. Questioned costs: None Context: The County is required to document and follow its monitoring process for subrecipients to ensure that the subrecipient is adhering to the terms of the agreement and to ensure that the subrecipient has designed and implemented effective internal controls that prevent noncompliance. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the requirement therefore did not complete it. Effect: Not following through on monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program expenditures reported by the County. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: The County is required to perform monitoring activities on any funds that are passed down to subrecipients as listed in 2 C.F.R. section 200.332 including verification that the recipient is audited as required by 2 C.F.R. section 200.501. Condition: During our test for subrecipient monitoring, the County did not have documented monitoring processes for monitoring subrecipients. Additionally, for the two subrecipients that required single audits, the County did not obtain and review those single audit reports as required by the above referenced criteria. The County did review the subrecipients expenditures to ensure that those expenditures met the requirements of the subrecipient agreement. Questioned costs: None Context: The County is required to document and follow its monitoring process for subrecipients to ensure that the subrecipient is adhering to the terms of the agreement and to ensure that the subrecipient has designed and implemented effective internal controls that prevent noncompliance. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the requirement therefore did not complete it. Effect: Not following through on monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program expenditures reported by the County. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: The County is required to perform monitoring activities on any funds that are passed down to subrecipients as listed in 2 C.F.R. section 200.332 including verification that the recipient is audited as required by 2 C.F.R. section 200.501. Condition: During our test for subrecipient monitoring, the County did not have documented monitoring processes for monitoring subrecipients. Additionally, for the two subrecipients that required single audits, the County did not obtain and review those single audit reports as required by the above referenced criteria. The County did review the subrecipients expenditures to ensure that those expenditures met the requirements of the subrecipient agreement. Questioned costs: None Context: The County is required to document and follow its monitoring process for subrecipients to ensure that the subrecipient is adhering to the terms of the agreement and to ensure that the subrecipient has designed and implemented effective internal controls that prevent noncompliance. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the requirement therefore did not complete it. Effect: Not following through on monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program expenditures reported by the County. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: The County is required to perform monitoring activities on any funds that are passed down to subrecipients as listed in 2 C.F.R. section 200.332 including verification that the recipient is audited as required by 2 C.F.R. section 200.501. Condition: During our test for subrecipient monitoring, the County did not have documented monitoring processes for monitoring subrecipients. Additionally, for the two subrecipients that required single audits, the County did not obtain and review those single audit reports as required by the above referenced criteria. The County did review the subrecipients expenditures to ensure that those expenditures met the requirements of the subrecipient agreement. Questioned costs: None Context: The County is required to document and follow its monitoring process for subrecipients to ensure that the subrecipient is adhering to the terms of the agreement and to ensure that the subrecipient has designed and implemented effective internal controls that prevent noncompliance. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the requirement therefore did not complete it. Effect: Not following through on monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program expenditures reported by the County. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: The County is required to perform monitoring activities on any funds that are passed down to subrecipients as listed in 2 C.F.R. section 200.332 including verification that the recipient is audited as required by 2 C.F.R. section 200.501. Condition: During our test for subrecipient monitoring, the County did not have documented monitoring processes for monitoring subrecipients. Additionally, for the two subrecipients that required single audits, the County did not obtain and review those single audit reports as required by the above referenced criteria. The County did review the subrecipients expenditures to ensure that those expenditures met the requirements of the subrecipient agreement. Questioned costs: None Context: The County is required to document and follow its monitoring process for subrecipients to ensure that the subrecipient is adhering to the terms of the agreement and to ensure that the subrecipient has designed and implemented effective internal controls that prevent noncompliance. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the requirement therefore did not complete it. Effect: Not following through on monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program expenditures reported by the County. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that only the program income report was submitted by the County, and it was submitted on an annual basis rather than the required quarterly basis, However, we did conclude that the program income report was complete and accurate. The other reports were not submitted by the County. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, only one report, the Program Income report was submitted and that was submitted for the entire year rather than on the required quarterly basis. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as a reporting checklist to ensure that reporting requirements are tracked and meet. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that only the program income report was submitted by the County, and it was submitted on an annual basis rather than the required quarterly basis, However, we did conclude that the program income report was complete and accurate. The other reports were not submitted by the County. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, only one report, the Program Income report was submitted and that was submitted for the entire year rather than on the required quarterly basis. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as a reporting checklist to ensure that reporting requirements are tracked and meet. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that only the program income report was submitted by the County, and it was submitted on an annual basis rather than the required quarterly basis, However, we did conclude that the program income report was complete and accurate. The other reports were not submitted by the County. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, only one report, the Program Income report was submitted and that was submitted for the entire year rather than on the required quarterly basis. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as a reporting checklist to ensure that reporting requirements are tracked and meet. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that only the program income report was submitted by the County, and it was submitted on an annual basis rather than the required quarterly basis, However, we did conclude that the program income report was complete and accurate. The other reports were not submitted by the County. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, only one report, the Program Income report was submitted and that was submitted for the entire year rather than on the required quarterly basis. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as a reporting checklist to ensure that reporting requirements are tracked and meet. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires the County to submit to the State various reports throughout the term of the agreement. Based on terms of the agreement in Exhibit D item 22, the County must submit quarterly financial, activity and program income reports, semi-annual labor and compliance reports and annual performance reports. Condition: During our test of the reporting requirements, we determined that only the program income report was submitted by the County, and it was submitted on an annual basis rather than the required quarterly basis, However, we did conclude that the program income report was complete and accurate. The other reports were not submitted by the County. Questioned costs: None Context: The County’s agreement with the State requires that various reports are submitted at various times during the year. Based on the agreement, the County should submit a total of 15 reports during the year, however, only one report, the Program Income report was submitted and that was submitted for the entire year rather than on the required quarterly basis. Cause: Due to an empty employment position at the time of monitoring, the County was unaware of the reporting requirements and therefore was unable to complete them. Effect: Not following through on the reporting requirements may cause the State to require increased monitoring or result in increased challenges in obtaining funding due to continued noncompliance. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County develop procedures, such as a reporting checklist to ensure that reporting requirements are tracked and meet. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.
Criteria: Grant compliance requires that Home Investment Partnership Program loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure HOME loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 92.500 and 92.201(b). This requirement states the participating jurisdiction “has committed and expended HOME funds, as required, and has met HOME program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for one loan. Questioned costs: Known questioned costs of $99,570, the value of the loan. Context: HOME loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected six loans of a population of eighteen HOME Program loans to test continuing compliance and found that one of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-002 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the HOME grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.