Audit 35170

FY End
2022-10-31
Total Expended
$27.02M
Findings
44
Programs
25
Year: 2022 Accepted: 2023-05-04

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
32983 2022-021 - Yes L
32984 2022-026 Material Weakness Yes L
32985 2022-021 - Yes L
32986 2022-026 Material Weakness Yes L
32987 2022-021 - Yes L
32988 2022-026 Material Weakness Yes L
32989 2022-020 - Yes L
32990 2022-021 - Yes L
32991 2022-025 Significant Deficiency Yes L
32992 2022-026 Material Weakness Yes L
32993 2022-021 - Yes L
32994 2022-026 Material Weakness Yes L
32995 2022-021 - Yes L
32996 2022-026 Material Weakness Yes L
32997 2022-021 - Yes L
32998 2022-022 - - AB
32999 2022-026 Material Weakness Yes L
33000 2022-027 Material Weakness - AB
33001 2022-023 - Yes M
33002 2022-028 Material Weakness - M
33003 2022-024 - - B
33004 2022-029 Material Weakness - B
609425 2022-021 - Yes L
609426 2022-026 Material Weakness Yes L
609427 2022-021 - Yes L
609428 2022-026 Material Weakness Yes L
609429 2022-021 - Yes L
609430 2022-026 Material Weakness Yes L
609431 2022-020 - Yes L
609432 2022-021 - Yes L
609433 2022-025 Significant Deficiency Yes L
609434 2022-026 Material Weakness Yes L
609435 2022-021 - Yes L
609436 2022-026 Material Weakness Yes L
609437 2022-021 - Yes L
609438 2022-026 Material Weakness Yes L
609439 2022-021 - Yes L
609440 2022-022 - - AB
609441 2022-026 Material Weakness Yes L
609442 2022-027 Material Weakness - AB
609443 2022-023 - Yes M
609444 2022-028 Material Weakness - M
609445 2022-024 - - B
609446 2022-029 Material Weakness - B

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $11.98M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.29M Yes 2
97.029 Flood Mitigation Assistance $985,623 Yes 0
11.307 Economic Adjustment Assistance $711,283 - 0
14.218 Community Development Block Grants/entitlement Grants $671,489 Yes 0
59.075 Shuttered Venue Operators Grant Program $557,070 - 0
20.507 Federal Transit_formula Grants $527,315 Yes 0
20.527 Public Transportation Emergency Relief Program $350,000 - 0
10.927 Emergency Watershed Protection Program - Disaster Relief Appropriations Act $305,261 - 0
20.500 Federal Transit_capital Investment Grants $228,751 Yes 0
16.609 Project Safe Neighborhoods $94,765 - 0
16.710 Public Safety Partnership and Community Policing Grants $78,912 - 0
14.239 Home Investment Partnerships Program $69,445 - 0
20.219 Recreational Trails Program $32,488 - 0
20.600 State and Community Highway Safety $32,271 - 0
45.312 National Leadership Grants $28,121 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $20,900 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $17,922 - 0
15.916 Outdoor Recreation_acquisition, Development and Planning $15,356 - 0
20.205 Highway Planning and Construction $12,625 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4,602 - 0
97.039 Hazard Mitigation Grant $3,725 - 0
16.751 Edward Byrne Memorial Competitive Grant Program $3,176 - 0
16.588 Violence Against Women Formula Grants $2,007 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $1,107 - 0

Contacts

Name Title Type
YNYLNKW7THY5 Cydra Wingerter Auditee
3372918309 Bryan Joubert Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Lafayette City-Parish Consolidated Government (Government) under programs of the federal government for the year ended October 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Government, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Government. Expenditures reported on the Schedule are reported in accordance with accounting principles generally accepted in the United States of America as applied to governmental units, which is described in Note 1 to the Governments basic financial statements for the year ended October 31, 2022. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-020 Compliance with Federal Funding Accountability and Transparency Act Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-19-MC-22-003 Criteria The Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 60202 of Public Law 110-252, hereafter referred to as the ?Transparency Act? that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the FSRS. Condition The Government, as a direct recipient of the Community Development Block Grants/Entitlement Grants, did not comply with the reporting requirements under the Federal Funding Accountability and Transparency Act. The Government did not report subaward data through FSRS. Cause The Government was unaware of the reporting requirement of the Transparency Act. Effect The Government is in noncompliance with the terms of the grant award document set forth by the grantor and the requirements for the Federal Funding Accountability and Transparency Act. Recommendation Management should register with FSRS and report subaward data through FSRS to comply with the requirements of the Federal Funding Accountability and Transparency Act. Views of Responsible Officials and Planned Corrective Action The subaward agreements addressed in this finding occurred in December 2021 and January 2022. The Government originally received this finding in April 2022 after the deadline to report the above referenced agreements had passed. Since April 2022, the Government has properly reported all Federal subaward agreements through FSRS. This finding is not expected to reoccur.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-025 Compliance with Federal Funding Accountability and Transparency Act Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-19-MC-22-003 See Compliance Finding 2022-020. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-020 Compliance with Federal Funding Accountability and Transparency Act Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-19-MC-22-003 Criteria The Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 60202 of Public Law 110-252, hereafter referred to as the ?Transparency Act? that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the FSRS. Condition The Government, as a direct recipient of the Community Development Block Grants/Entitlement Grants, did not comply with the reporting requirements under the Federal Funding Accountability and Transparency Act. The Government did not report subaward data through FSRS. Cause The Government was unaware of the reporting requirement of the Transparency Act. Effect The Government is in noncompliance with the terms of the grant award document set forth by the grantor and the requirements for the Federal Funding Accountability and Transparency Act. Recommendation Management should register with FSRS and report subaward data through FSRS to comply with the requirements of the Federal Funding Accountability and Transparency Act. Views of Responsible Officials and Planned Corrective Action The subaward agreements addressed in this finding occurred in December 2021 and January 2022. The Government originally received this finding in April 2022 after the deadline to report the above referenced agreements had passed. Since April 2022, the Government has properly reported all Federal subaward agreements through FSRS. This finding is not expected to reoccur.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-022 Compliance with Allowable Activity and Allowable Cost Fiscal year finding initially occurred: 2022 CDBG ? Entitlement Grants Cluster (14.218) B-22-MC-22-0003 Criteria In accordance with 2 CFR part 200, in order for a cost to allowable under a grant, the payment must not have been made for an incorrect amount under stator, contractual, administrative, or other legally applicable requirement. In addition, it must be for an allowable activity as identified in the grant documents or other grant/program information. Condition A sample of 30 disbursement transactions was selected for testing from a population of 475 transactions. The test found that 1 disbursement was for floor repairs to a home, in the amount of $3,317, that had been rehabilitated by the Government in 2012 under a different grant. Based on the original contract between the Government and homeowner, the homeowner had a 1-year warranty from the date of acceptance to report faulty work. Repair work done in 2022 was identified by CDBG employees, because of faulty work. However, there was no documentation on the approval or supporting documentation. Based on the contract, the Government had no obligation for this repair. Our sample was a statistical sample. Cause The internal controls over allowable activities and allowable costs were not effective in identifying this payment as an unallowable cost and activity under the CDBG grant guidelines. Effect The payment appears to be an unallowable activity and an unallowable cost. Recommendation The Government should review its internal control policies and procedures over allowable costs and activities to ensure payments meet both requirements before being approved as a charge to the grant. Views of Responsible Officials and Planned Corrective Action The home identified in this finding received major rehabilitation work under the HOME grant in 2012. This included flooring installation but the Government failed to install a moisture barrier. As such, the external moisture caused the wooden sub-floor to deteriorate slowly over a 10 year period which posed a serious threat to the health and safety of the homeowner. Although per the contract the homeowner had one year to identify issues, it was determined that the homeowner has no reasonable way of identifying the error made by the Government which caused this issue. In order to circumvent the eminent danger to the homeowner as a result of the Government?s error, it was decided that the original warranty would be honored. As per HUD regulations, CDBG may be used for minor rehabilitation (which the replacement of the floor qualifies as), and was used in this instance. In order to ensure the one year contractual language does not preclude the Government from correcting errors made, the policy and procedures of the Housing Rehabilitation Program have been updated. The following language has been added ? All work done under the auspices of the Housing Rehab Program (RHP) is guaranteed against faulty installation and/or material for one year after the home is confirmed to meet or exceed the standards of the International Property Maintenance Code (IPMC). Following the one year guarantee, should LCG have substantially failed to meet the standards of the IPMC, resulting in extreme Health and Safety issues for the homeowner, the Housing Rehabilitation Program staff, at its discretion, may review homeowner eligibility for additional repair of the faulty work in order to meet Health and Safety requirements and to fulfill its good-faith obligation to the homeowner. The homeowner must continue to meet HUD income and eligibility requirements. This finding is not expected to reoccur.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-027 Compliance with Allowable Activity and Allowable Cost Fiscal year finding initially occurred: 2022 CDBG ? Entitlement Grants Cluster (14.218) B-22-MC-22-0003 See Compliance Finding 2022-022. 2022-022 Compliance with Allowable Activity and Allowable Cost Fiscal year finding initially occurred: 2022 CDBG ? Entitlement Grants Cluster (14.218) B-22-MC-22-0003 Criteria In accordance with 2 CFR part 200, in order for a cost to allowable under a grant, the payment must not have been made for an incorrect amount under stator, contractual, administrative, or other legally applicable requirement. In addition, it must be for an allowable activity as identified in the grant documents or other grant/program information. Condition A sample of 30 disbursement transactions was selected for testing from a population of 475 transactions. The test found that 1 disbursement was for floor repairs to a home, in the amount of $3,317, that had been rehabilitated by the Government in 2012 under a different grant. Based on the original contract between the Government and homeowner, the homeowner had a 1-year warranty from the date of acceptance to report faulty work. Repair work done in 2022 was identified by CDBG employees, because of faulty work. However, there was no documentation on the approval or supporting documentation. Based on the contract, the Government had no obligation for this repair. Our sample was a statistical sample. Cause The internal controls over allowable activities and allowable costs were not effective in identifying this payment as an unallowable cost and activity under the CDBG grant guidelines. Effect The payment appears to be an unallowable activity and an unallowable cost. Recommendation The Government should review its internal control policies and procedures over allowable costs and activities to ensure payments meet both requirements before being approved as a charge to the grant. Views of Responsible Officials and Planned Corrective Action The home identified in this finding received major rehabilitation work under the HOME grant in 2012. This included flooring installation but the Government failed to install a moisture barrier. As such, the external moisture caused the wooden sub-floor to deteriorate slowly over a 10 year period which posed a serious threat to the health and safety of the homeowner. Although per the contract the homeowner had one year to identify issues, it was determined that the homeowner has no reasonable way of identifying the error made by the Government which caused this issue. In order to circumvent the eminent danger to the homeowner as a result of the Government?s error, it was decided that the original warranty would be honored. As per HUD regulations, CDBG may be used for minor rehabilitation (which the replacement of the floor qualifies as), and was used in this instance. In order to ensure the one year contractual language does not preclude the Government from correcting errors made, the policy and procedures of the Housing Rehabilitation Program have been updated. The following language has been added ? All work done under the auspices of the Housing Rehab Program (RHP) is guaranteed against faulty installation and/or material for one year after the home is confirmed to meet or exceed the standards of the International Property Maintenance Code (IPMC). Following the one year guarantee, should LCG have substantially failed to meet the standards of the IPMC, resulting in extreme Health and Safety issues for the homeowner, the Housing Rehabilitation Program staff, at its discretion, may review homeowner eligibility for additional repair of the faulty work in order to meet Health and Safety requirements and to fulfill its good-faith obligation to the homeowner. The homeowner must continue to meet HUD income and eligibility requirements. This finding is not expected to reoccur.
U.S. DEPARTMENT OF TREASURY: 2022-023 Compliance with Subrecipient Monitoring Fiscal year finding initially occurred: 2021 Emergency Rental Assistance Program (21.023) Criteria An effective system of internal controls contemplates that management properly review and assess the subrecipient through monitoring procedures and documents the results of the procedures performed. This includes ensuring the subrecipient is following all direct and material compliance requirements applicable to each federal program. Condition During the current fiscal year, the Government performed one monitoring visit to each of the subrecipients. In this visit they tested 48 case files and reviewed them for compliance with record keeping and eligibility requirements. They identified 2 deficiencies in one of the subrecipients? case files. Which were corrected before they completed their visit. The other subrecipient had three deficiencies that were not corrected before the visit was completed. In addition, there was no follow-up by management on these deficiencies and as of 4/14/23, they have not performed a subsequent site visit. Cause The City does not have sufficient procedures in place to perform subrecipient monitoring in a timely manner and to follow-up on identified deficiencies. Effect The subrecipient could provide federal funds to ineligible individuals resulting in questioned costs that could go undetected. Recommendation We recommend the Government develop a formal policy in relation to subrecipient monitoring including the review procedures to be performed, the timing, frequency of the monitoring(s) and follow-up procedures. The Government should formally document their risk assessment of the subrecipient to support the nature, timing, and extent of testing of the subrecipient. Views of Responsible Officials and Planned Corrective Action The Government originally received this finding in 2021 to which the response was it would monitor subrecipients no less than once per fiscal year in which the awardee received funding or otherwise as required by Federal regulation for individual grants. The Government has met that requirement. In order to further improve upon monitoring practices, the Government will perform follow-up monitoring reviews within 3 months, as applicable by program type, of finding deficiencies in the subrecipients? programs to ensure corrective active has taken place. The Government will also consider the subaward amount as part of the risk assessment when contracting with each subrecipient; higher risk subrecipient programs will be monitored at a more frequent interval. This project is expected to be completed within six months and will be overseen by the Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF TREASURY: 2022-028 Compliance with Subrecipient Monitoring Fiscal year finding initially occurred: 2021 Emergency Rental Assistance Program (21.023) See Compliance Finding 2022-023. 2022-023 Compliance with Subrecipient Monitoring Fiscal year finding initially occurred: 2021 Emergency Rental Assistance Program (21.023) Criteria An effective system of internal controls contemplates that management properly review and assess the subrecipient through monitoring procedures and documents the results of the procedures performed. This includes ensuring the subrecipient is following all direct and material compliance requirements applicable to each federal program. Condition During the current fiscal year, the Government performed one monitoring visit to each of the subrecipients. In this visit they tested 48 case files and reviewed them for compliance with record keeping and eligibility requirements. They identified 2 deficiencies in one of the subrecipients? case files. Which were corrected before they completed their visit. The other subrecipient had three deficiencies that were not corrected before the visit was completed. In addition, there was no follow-up by management on these deficiencies and as of 4/14/23, they have not performed a subsequent site visit. Cause The City does not have sufficient procedures in place to perform subrecipient monitoring in a timely manner and to follow-up on identified deficiencies. Effect The subrecipient could provide federal funds to ineligible individuals resulting in questioned costs that could go undetected. Recommendation We recommend the Government develop a formal policy in relation to subrecipient monitoring including the review procedures to be performed, the timing, frequency of the monitoring(s) and follow-up procedures. The Government should formally document their risk assessment of the subrecipient to support the nature, timing, and extent of testing of the subrecipient. Views of Responsible Officials and Planned Corrective Action The Government originally received this finding in 2021 to which the response was it would monitor subrecipients no less than once per fiscal year in which the awardee received funding or otherwise as required by Federal regulation for individual grants. The Government has met that requirement. In order to further improve upon monitoring practices, the Government will perform follow-up monitoring reviews within 3 months, as applicable by program type, of finding deficiencies in the subrecipients? programs to ensure corrective active has taken place. The Government will also consider the subaward amount as part of the risk assessment when contracting with each subrecipient; higher risk subrecipient programs will be monitored at a more frequent interval. This project is expected to be completed within six months and will be overseen by the Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF TREASURY: 2022-024 Compliance with Allowable Cost Fiscal year finding initially occurred: 2022 Coronavirus State and Local Fiscal Recovery Funds (21.027) Criteria In accordance with 2 CFR part 200, in order for a cost to be allowable under the grant, the payment must not have been made for an incorrect amount under statutory, contractual, administrative, or other legally applicable requirement. Louisiana state law (R.S. 33:4712.10) requires all political subdivisions to obtain an appraisal when purchasing immovable property greater than $3,000. In addition, the purchase price cannot exceed the appraisal amount (A.G. Op 09-0293) Condition A sample of 14 disbursement transactions were selected for testing from a population of 33 transactions. The test found that 1 disbursement was for the purchase of property where the Government paid $10,000 more than the appraisal. Our sample was a statistical sample. Cause The Government did not adhere to its policies and procedures regarding purchasing of immovable property. Effect The Government may be required to reimburse this unallowable cost to the grantor. Recommendation The Government should determine the reason the policies and procedures were not adhered to and strengthen them so that they are effective going forward. Views of Responsible Officials and Planned Corrective Action The Government agrees with this finding. Procedures have been put in place to ensure the Purchasing division will not process any request for purchases of land sent through their office without having the appraisal in hand. In the event multiple appraisals are provided, Purchasing will ensure that the lowest appraisal is the value used for the purchase. The field will be retrained that all purchases must be submitted through the Purchasing division to ensure these procedures can be enforced prior to payment. This project is expected to be completed by October 31, 2023 and will be overseen by Interim Chief Financial Officer Lowell Duhon.
U.S. DEPARTMENT OF TREASURY: 2022-029 Compliance with Allowable Cost Fiscal year finding initially occurred: 2022 Coronavirus State and Local Fiscal Recovery Funds (21.027) See Compliance Finding 2022-024. 2022-024 Compliance with Allowable Cost Fiscal year finding initially occurred: 2022 Coronavirus State and Local Fiscal Recovery Funds (21.027) Criteria In accordance with 2 CFR part 200, in order for a cost to be allowable under the grant, the payment must not have been made for an incorrect amount under statutory, contractual, administrative, or other legally applicable requirement. Louisiana state law (R.S. 33:4712.10) requires all political subdivisions to obtain an appraisal when purchasing immovable property greater than $3,000. In addition, the purchase price cannot exceed the appraisal amount (A.G. Op 09-0293) Condition A sample of 14 disbursement transactions were selected for testing from a population of 33 transactions. The test found that 1 disbursement was for the purchase of property where the Government paid $10,000 more than the appraisal. Our sample was a statistical sample. Cause The Government did not adhere to its policies and procedures regarding purchasing of immovable property. Effect The Government may be required to reimburse this unallowable cost to the grantor. Recommendation The Government should determine the reason the policies and procedures were not adhered to and strengthen them so that they are effective going forward. Views of Responsible Officials and Planned Corrective Action The Government agrees with this finding. Procedures have been put in place to ensure the Purchasing division will not process any request for purchases of land sent through their office without having the appraisal in hand. In the event multiple appraisals are provided, Purchasing will ensure that the lowest appraisal is the value used for the purchase. The field will be retrained that all purchases must be submitted through the Purchasing division to ensure these procedures can be enforced prior to payment. This project is expected to be completed by October 31, 2023 and will be overseen by Interim Chief Financial Officer Lowell Duhon.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-020 Compliance with Federal Funding Accountability and Transparency Act Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-19-MC-22-003 Criteria The Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 60202 of Public Law 110-252, hereafter referred to as the ?Transparency Act? that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the FSRS. Condition The Government, as a direct recipient of the Community Development Block Grants/Entitlement Grants, did not comply with the reporting requirements under the Federal Funding Accountability and Transparency Act. The Government did not report subaward data through FSRS. Cause The Government was unaware of the reporting requirement of the Transparency Act. Effect The Government is in noncompliance with the terms of the grant award document set forth by the grantor and the requirements for the Federal Funding Accountability and Transparency Act. Recommendation Management should register with FSRS and report subaward data through FSRS to comply with the requirements of the Federal Funding Accountability and Transparency Act. Views of Responsible Officials and Planned Corrective Action The subaward agreements addressed in this finding occurred in December 2021 and January 2022. The Government originally received this finding in April 2022 after the deadline to report the above referenced agreements had passed. Since April 2022, the Government has properly reported all Federal subaward agreements through FSRS. This finding is not expected to reoccur.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-025 Compliance with Federal Funding Accountability and Transparency Act Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-19-MC-22-003 See Compliance Finding 2022-020. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-020 Compliance with Federal Funding Accountability and Transparency Act Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-19-MC-22-003 Criteria The Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 60202 of Public Law 110-252, hereafter referred to as the ?Transparency Act? that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the FSRS. Condition The Government, as a direct recipient of the Community Development Block Grants/Entitlement Grants, did not comply with the reporting requirements under the Federal Funding Accountability and Transparency Act. The Government did not report subaward data through FSRS. Cause The Government was unaware of the reporting requirement of the Transparency Act. Effect The Government is in noncompliance with the terms of the grant award document set forth by the grantor and the requirements for the Federal Funding Accountability and Transparency Act. Recommendation Management should register with FSRS and report subaward data through FSRS to comply with the requirements of the Federal Funding Accountability and Transparency Act. Views of Responsible Officials and Planned Corrective Action The subaward agreements addressed in this finding occurred in December 2021 and January 2022. The Government originally received this finding in April 2022 after the deadline to report the above referenced agreements had passed. Since April 2022, the Government has properly reported all Federal subaward agreements through FSRS. This finding is not expected to reoccur.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-022 Compliance with Allowable Activity and Allowable Cost Fiscal year finding initially occurred: 2022 CDBG ? Entitlement Grants Cluster (14.218) B-22-MC-22-0003 Criteria In accordance with 2 CFR part 200, in order for a cost to allowable under a grant, the payment must not have been made for an incorrect amount under stator, contractual, administrative, or other legally applicable requirement. In addition, it must be for an allowable activity as identified in the grant documents or other grant/program information. Condition A sample of 30 disbursement transactions was selected for testing from a population of 475 transactions. The test found that 1 disbursement was for floor repairs to a home, in the amount of $3,317, that had been rehabilitated by the Government in 2012 under a different grant. Based on the original contract between the Government and homeowner, the homeowner had a 1-year warranty from the date of acceptance to report faulty work. Repair work done in 2022 was identified by CDBG employees, because of faulty work. However, there was no documentation on the approval or supporting documentation. Based on the contract, the Government had no obligation for this repair. Our sample was a statistical sample. Cause The internal controls over allowable activities and allowable costs were not effective in identifying this payment as an unallowable cost and activity under the CDBG grant guidelines. Effect The payment appears to be an unallowable activity and an unallowable cost. Recommendation The Government should review its internal control policies and procedures over allowable costs and activities to ensure payments meet both requirements before being approved as a charge to the grant. Views of Responsible Officials and Planned Corrective Action The home identified in this finding received major rehabilitation work under the HOME grant in 2012. This included flooring installation but the Government failed to install a moisture barrier. As such, the external moisture caused the wooden sub-floor to deteriorate slowly over a 10 year period which posed a serious threat to the health and safety of the homeowner. Although per the contract the homeowner had one year to identify issues, it was determined that the homeowner has no reasonable way of identifying the error made by the Government which caused this issue. In order to circumvent the eminent danger to the homeowner as a result of the Government?s error, it was decided that the original warranty would be honored. As per HUD regulations, CDBG may be used for minor rehabilitation (which the replacement of the floor qualifies as), and was used in this instance. In order to ensure the one year contractual language does not preclude the Government from correcting errors made, the policy and procedures of the Housing Rehabilitation Program have been updated. The following language has been added ? All work done under the auspices of the Housing Rehab Program (RHP) is guaranteed against faulty installation and/or material for one year after the home is confirmed to meet or exceed the standards of the International Property Maintenance Code (IPMC). Following the one year guarantee, should LCG have substantially failed to meet the standards of the IPMC, resulting in extreme Health and Safety issues for the homeowner, the Housing Rehabilitation Program staff, at its discretion, may review homeowner eligibility for additional repair of the faulty work in order to meet Health and Safety requirements and to fulfill its good-faith obligation to the homeowner. The homeowner must continue to meet HUD income and eligibility requirements. This finding is not expected to reoccur.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-027 Compliance with Allowable Activity and Allowable Cost Fiscal year finding initially occurred: 2022 CDBG ? Entitlement Grants Cluster (14.218) B-22-MC-22-0003 See Compliance Finding 2022-022. 2022-022 Compliance with Allowable Activity and Allowable Cost Fiscal year finding initially occurred: 2022 CDBG ? Entitlement Grants Cluster (14.218) B-22-MC-22-0003 Criteria In accordance with 2 CFR part 200, in order for a cost to allowable under a grant, the payment must not have been made for an incorrect amount under stator, contractual, administrative, or other legally applicable requirement. In addition, it must be for an allowable activity as identified in the grant documents or other grant/program information. Condition A sample of 30 disbursement transactions was selected for testing from a population of 475 transactions. The test found that 1 disbursement was for floor repairs to a home, in the amount of $3,317, that had been rehabilitated by the Government in 2012 under a different grant. Based on the original contract between the Government and homeowner, the homeowner had a 1-year warranty from the date of acceptance to report faulty work. Repair work done in 2022 was identified by CDBG employees, because of faulty work. However, there was no documentation on the approval or supporting documentation. Based on the contract, the Government had no obligation for this repair. Our sample was a statistical sample. Cause The internal controls over allowable activities and allowable costs were not effective in identifying this payment as an unallowable cost and activity under the CDBG grant guidelines. Effect The payment appears to be an unallowable activity and an unallowable cost. Recommendation The Government should review its internal control policies and procedures over allowable costs and activities to ensure payments meet both requirements before being approved as a charge to the grant. Views of Responsible Officials and Planned Corrective Action The home identified in this finding received major rehabilitation work under the HOME grant in 2012. This included flooring installation but the Government failed to install a moisture barrier. As such, the external moisture caused the wooden sub-floor to deteriorate slowly over a 10 year period which posed a serious threat to the health and safety of the homeowner. Although per the contract the homeowner had one year to identify issues, it was determined that the homeowner has no reasonable way of identifying the error made by the Government which caused this issue. In order to circumvent the eminent danger to the homeowner as a result of the Government?s error, it was decided that the original warranty would be honored. As per HUD regulations, CDBG may be used for minor rehabilitation (which the replacement of the floor qualifies as), and was used in this instance. In order to ensure the one year contractual language does not preclude the Government from correcting errors made, the policy and procedures of the Housing Rehabilitation Program have been updated. The following language has been added ? All work done under the auspices of the Housing Rehab Program (RHP) is guaranteed against faulty installation and/or material for one year after the home is confirmed to meet or exceed the standards of the International Property Maintenance Code (IPMC). Following the one year guarantee, should LCG have substantially failed to meet the standards of the IPMC, resulting in extreme Health and Safety issues for the homeowner, the Housing Rehabilitation Program staff, at its discretion, may review homeowner eligibility for additional repair of the faulty work in order to meet Health and Safety requirements and to fulfill its good-faith obligation to the homeowner. The homeowner must continue to meet HUD income and eligibility requirements. This finding is not expected to reoccur.
U.S. DEPARTMENT OF TREASURY: 2022-023 Compliance with Subrecipient Monitoring Fiscal year finding initially occurred: 2021 Emergency Rental Assistance Program (21.023) Criteria An effective system of internal controls contemplates that management properly review and assess the subrecipient through monitoring procedures and documents the results of the procedures performed. This includes ensuring the subrecipient is following all direct and material compliance requirements applicable to each federal program. Condition During the current fiscal year, the Government performed one monitoring visit to each of the subrecipients. In this visit they tested 48 case files and reviewed them for compliance with record keeping and eligibility requirements. They identified 2 deficiencies in one of the subrecipients? case files. Which were corrected before they completed their visit. The other subrecipient had three deficiencies that were not corrected before the visit was completed. In addition, there was no follow-up by management on these deficiencies and as of 4/14/23, they have not performed a subsequent site visit. Cause The City does not have sufficient procedures in place to perform subrecipient monitoring in a timely manner and to follow-up on identified deficiencies. Effect The subrecipient could provide federal funds to ineligible individuals resulting in questioned costs that could go undetected. Recommendation We recommend the Government develop a formal policy in relation to subrecipient monitoring including the review procedures to be performed, the timing, frequency of the monitoring(s) and follow-up procedures. The Government should formally document their risk assessment of the subrecipient to support the nature, timing, and extent of testing of the subrecipient. Views of Responsible Officials and Planned Corrective Action The Government originally received this finding in 2021 to which the response was it would monitor subrecipients no less than once per fiscal year in which the awardee received funding or otherwise as required by Federal regulation for individual grants. The Government has met that requirement. In order to further improve upon monitoring practices, the Government will perform follow-up monitoring reviews within 3 months, as applicable by program type, of finding deficiencies in the subrecipients? programs to ensure corrective active has taken place. The Government will also consider the subaward amount as part of the risk assessment when contracting with each subrecipient; higher risk subrecipient programs will be monitored at a more frequent interval. This project is expected to be completed within six months and will be overseen by the Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF TREASURY: 2022-028 Compliance with Subrecipient Monitoring Fiscal year finding initially occurred: 2021 Emergency Rental Assistance Program (21.023) See Compliance Finding 2022-023. 2022-023 Compliance with Subrecipient Monitoring Fiscal year finding initially occurred: 2021 Emergency Rental Assistance Program (21.023) Criteria An effective system of internal controls contemplates that management properly review and assess the subrecipient through monitoring procedures and documents the results of the procedures performed. This includes ensuring the subrecipient is following all direct and material compliance requirements applicable to each federal program. Condition During the current fiscal year, the Government performed one monitoring visit to each of the subrecipients. In this visit they tested 48 case files and reviewed them for compliance with record keeping and eligibility requirements. They identified 2 deficiencies in one of the subrecipients? case files. Which were corrected before they completed their visit. The other subrecipient had three deficiencies that were not corrected before the visit was completed. In addition, there was no follow-up by management on these deficiencies and as of 4/14/23, they have not performed a subsequent site visit. Cause The City does not have sufficient procedures in place to perform subrecipient monitoring in a timely manner and to follow-up on identified deficiencies. Effect The subrecipient could provide federal funds to ineligible individuals resulting in questioned costs that could go undetected. Recommendation We recommend the Government develop a formal policy in relation to subrecipient monitoring including the review procedures to be performed, the timing, frequency of the monitoring(s) and follow-up procedures. The Government should formally document their risk assessment of the subrecipient to support the nature, timing, and extent of testing of the subrecipient. Views of Responsible Officials and Planned Corrective Action The Government originally received this finding in 2021 to which the response was it would monitor subrecipients no less than once per fiscal year in which the awardee received funding or otherwise as required by Federal regulation for individual grants. The Government has met that requirement. In order to further improve upon monitoring practices, the Government will perform follow-up monitoring reviews within 3 months, as applicable by program type, of finding deficiencies in the subrecipients? programs to ensure corrective active has taken place. The Government will also consider the subaward amount as part of the risk assessment when contracting with each subrecipient; higher risk subrecipient programs will be monitored at a more frequent interval. This project is expected to be completed within six months and will be overseen by the Community Development & Planning Director Mary Sliman.
U.S. DEPARTMENT OF TREASURY: 2022-024 Compliance with Allowable Cost Fiscal year finding initially occurred: 2022 Coronavirus State and Local Fiscal Recovery Funds (21.027) Criteria In accordance with 2 CFR part 200, in order for a cost to be allowable under the grant, the payment must not have been made for an incorrect amount under statutory, contractual, administrative, or other legally applicable requirement. Louisiana state law (R.S. 33:4712.10) requires all political subdivisions to obtain an appraisal when purchasing immovable property greater than $3,000. In addition, the purchase price cannot exceed the appraisal amount (A.G. Op 09-0293) Condition A sample of 14 disbursement transactions were selected for testing from a population of 33 transactions. The test found that 1 disbursement was for the purchase of property where the Government paid $10,000 more than the appraisal. Our sample was a statistical sample. Cause The Government did not adhere to its policies and procedures regarding purchasing of immovable property. Effect The Government may be required to reimburse this unallowable cost to the grantor. Recommendation The Government should determine the reason the policies and procedures were not adhered to and strengthen them so that they are effective going forward. Views of Responsible Officials and Planned Corrective Action The Government agrees with this finding. Procedures have been put in place to ensure the Purchasing division will not process any request for purchases of land sent through their office without having the appraisal in hand. In the event multiple appraisals are provided, Purchasing will ensure that the lowest appraisal is the value used for the purchase. The field will be retrained that all purchases must be submitted through the Purchasing division to ensure these procedures can be enforced prior to payment. This project is expected to be completed by October 31, 2023 and will be overseen by Interim Chief Financial Officer Lowell Duhon.
U.S. DEPARTMENT OF TREASURY: 2022-029 Compliance with Allowable Cost Fiscal year finding initially occurred: 2022 Coronavirus State and Local Fiscal Recovery Funds (21.027) See Compliance Finding 2022-024. 2022-024 Compliance with Allowable Cost Fiscal year finding initially occurred: 2022 Coronavirus State and Local Fiscal Recovery Funds (21.027) Criteria In accordance with 2 CFR part 200, in order for a cost to be allowable under the grant, the payment must not have been made for an incorrect amount under statutory, contractual, administrative, or other legally applicable requirement. Louisiana state law (R.S. 33:4712.10) requires all political subdivisions to obtain an appraisal when purchasing immovable property greater than $3,000. In addition, the purchase price cannot exceed the appraisal amount (A.G. Op 09-0293) Condition A sample of 14 disbursement transactions were selected for testing from a population of 33 transactions. The test found that 1 disbursement was for the purchase of property where the Government paid $10,000 more than the appraisal. Our sample was a statistical sample. Cause The Government did not adhere to its policies and procedures regarding purchasing of immovable property. Effect The Government may be required to reimburse this unallowable cost to the grantor. Recommendation The Government should determine the reason the policies and procedures were not adhered to and strengthen them so that they are effective going forward. Views of Responsible Officials and Planned Corrective Action The Government agrees with this finding. Procedures have been put in place to ensure the Purchasing division will not process any request for purchases of land sent through their office without having the appraisal in hand. In the event multiple appraisals are provided, Purchasing will ensure that the lowest appraisal is the value used for the purchase. The field will be retrained that all purchases must be submitted through the Purchasing division to ensure these procedures can be enforced prior to payment. This project is expected to be completed by October 31, 2023 and will be overseen by Interim Chief Financial Officer Lowell Duhon.