Finding: 2024-001 Reporting Finding Type: Noncompliance, Significant Deficiency Identification of the Federal Program(s): U.S. Department of Housing and Urban Development: Federal Assistance Listing #14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Criteria: Per Article VI. Program-Specific Reporting Requirements of the FY 2022 Community Project Funding (CPF) Grant Agreement No. B-22-CP-NY-0711 and the FY 2024 CPF Grant Agreement No. B-24-CP-NY-1727 with the U.S. Department of Housing and Urban Development (HUD): “The grantee must submit a performance report in the Disaster Recovery Grant Reporting system (DRGR) on a semi-annual basis and must include a completed Federal financial report as an attachment to each performance report in DRGR. Performance reports shall consist of a narrative of work accomplished during the reporting period. During the period of performance, the grantee must submit these reports in the DRGR no later than 30 calendar days after the end of the six-month reporting period. The first of these reporting periods begins on the first of January or June (whichever occurs first) after the date this Grant Agreement is signed by HUD.” Per the DRGR, the FY 2022 HUD CPF Grant financial reports and progress reports for January 1, 2023 through June 30, 2023, July 1, 2023 through December 31, 2023, January 1, 2024 through June 30, 2024, and July 1, 2024 through December 31, 2024 were due on July 30, 2023, January 30, 2024, July 30, 2024, and January 30, 2025, respectively. Per the DRGR, the FY 2024 HUD CPF Grant financial reports and progress reports for July 1, 2024 through December 31, 2024 were due on January 30, 2025. Condition: NUL did not complete and submit the FY 2022 and FY 2024 HUD CPF Grant financial and progress reports by the required due dates. Per our review of correspondence between NUL and HUD, it does not appear that NUL can file the reports with HUD through its DRGR system at this time. Cause: It appeared that staff turnover and unfamiliarity with reporting requirements of the new grant contributed to the condition noted above. Effect: NUL was not in compliance with the reporting requirements noted above. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: We recommend that NUL submit the required FY 2022 and FY 2024 HUD CPF Grant financial and progress reports when HUD’s DRGR system is able to support the submissions. Additionally, all financial reporting requirements should be identified at contract signing. NUL should consider developing a financial reporting calendar that identifies the nature and timing of all federal reporting requirements to assist with meeting its federal financial reporting obligations. View of Responsible Officials: See management’s corrective action plan.
Finding: 2024-002 Procurement and Suspension and Debarment Finding Type: Noncompliance, Significant Deficiency Identification of the Federal Program(s): U.S. Department of Housing and Urban Development: Federal Assistance Listing #14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Criteria: Suspension and Debarment The code of federal regulations – 2 CFR section 180.300 states that: “When you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified from receiving federal funds. You do this by: (a) Checking SAM.gov Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person.” Build America, Buy America Per Article IV. General Federal Requirements of the FY 2024 Community Project Funding (CPF) Grant Agreement No. B-24-CP-NY-1727 with the U.S. Department of Housing and Urban Development (HUD): “The Grantee must comply with the requirements of the Build America, Buy America (BABA) Act, 41 USC 8301 note, and all applicable rules and notices, as may be amended, if applicable to the Grantee’s infrastructure project.” Under Section 70914 of the BABA Act each covered federal agency must ensure that “none of the funds made available for a federal financial assistance program for infrastructure may be obligated for a project unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States.” Effective May 14, 2022, the non-federal entity must comply with BABA requirements for all applicable federal awards subject to those requirements. The non-federal entity must ensure that the following conditions are met for any funds (including federal funds and non-federal funds) used for an infrastructure project that receives a federal award subject to BABA requirements: 1. All iron and steel used in the project are produced in the United States; 2. All manufactured products used in the project are produced in the United States; and 3. All construction materials are manufactured in the United States. The non-federal entity must also incorporate these Buy America Preference requirements in all applicable subawards, contracts, and purchase orders for the work performed, or products supplied under a federal award with an infrastructure project. Condition: During our review of three contractors (from a population of six contractors), we noted the following: For all three contractors, there was no evidence to support that a SAM.gov suspension and debarment verification had been performed by NUL prior to commencement of work or that a suspension and debarment clause was included in the original contracts. For two contractors subject to BABA requirements, there was no evidence of BABA requirements in the original contracts, or evidence that the contractors were monitored, during the contract term to ensure that all iron, steel, and manufactured products used in the project were produced in the United States and all construction materials were manufactured in the United States. For one contractor, while NUL provided a letter of intent, we were not provided with a copy of the executed contract to verify the federal funds awarded to the contractor. It should be noted that NUL, in 2025, amended (or fully executed) its contracts to include the suspension and debarment clauses and BABA requirements, and obtained representations from contractors that materials manufactured in the United States were used, as applicable. Cause: NUL indicated that certain agreements with contractors were executed prior to the execution of the related federal awards. Effect: NUL was not in compliance with the requirements noted above. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: We recommend that all compliance requirements be identified at the time of contract signing. Further, those requirements should be documented and distributed to all NUL personnel responsible for ensuring and monitoring compliance with those provisions. Any actions necessary to ensure compliance should be undertaken in a timely manner. Documentation supporting compliance with said requirements should be maintained. View of Responsible Officials: See management’s corrective action plan.
Finding: 2024-003 Procurement and Suspension and Debarment Finding Type: Noncompliance, Significant Deficiency Identification of the Federal Program(s): U.S. Department of Health and Human Services: Federal Assistance Listing #93.185 – COVID-19 – Immunization Research, Demonstration, Public Information and Education Training and Clinical Skills Improvement Projects Criteria: The code of federal regulations – 2 CFR section 180.300 states that: “When you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified from receiving federal funds. You do this by: (a) Checking SAM.gov Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person.” Condition: During our review of two contractors (from a population of six contractors), we noted the following: For one contractor, NUL did not provide any evidence to support that a SAM.gov suspension and debarment verification had been performed or that a suspension and debarment clause was included in the contract. It should be noted that NUL, in 2025, amended the contract to include the suspension and debarment clause. Cause: NUL indicated that this issue occurred due to a clerical error, whereby the suspension and debarment clause was initially included in the draft contract but was accidentally omitted while other updates were being incorporated into the contract. Effect: NUL was not in compliance with the requirements noted above. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: We recommend that NUL ensure that personnel responsible for compliance and contracting are familiar with all suspension and debarment requirements. We recommend that NUL develop control procedures to ensure that contractor compliance reviews are timely performed and documented, with evidence of such maintained. Evidence of such reviews may include, but not be limited to, the existence of the appropriate clause in contracts, copies of suspension and debarment certifications from contractors, and/or documentation of verification via the SAM.gov website. View of Responsible Officials: See management’s corrective action plan.