Finding Text
2021-007- Missing Reports (SD, NC)
Federal Program Title:
Federal Catalog Number:
Federal Agency:
Pass-Through Entity:
Federal Award Number and Year:
Category of Finding:
Community Development Block GranUEntitlement Grants
14.218
U.S. Department of Housing and Urban Development
No applicable
B-19-MC-06-0515 - 2019
Reporting
Criteria: The Office of Management and Budget 2021 Compliance Supplement states that the following
reports are required to be submitted to the U.S. Department of Housing and Urban Development.
SF-425, Federal Financial Report - Applicable (cash status only) (this is the IDIS C04PR29 Cash on
Hand Quarterly Report made available in IDIS on August 12, 2019, which allows grantees to generate
this report by custom date ranges and export data to Excel and PDF)
Integrated Disbursement and Information System (/DIS) (0MB No. 25060077) - 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.
(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
Section 3 of the Housing and Urban Development Act of 1968 - The purpose of Section 3 is to ensure
that employment and other economic opportunities generated by certain HUD financial assistance shall,
to the greatest extent feasible, and consistent with existing federal, state, and local laws and regulations,
be directed to low-and very low-income persons, particularly those who are recipients of government
assistance for housing, and to business concerns which provide economic opportunities to low-and very
low-income persons. Section 3 projects are housing rehabilitation, housing construction, and other public
construction projects assisted under HUD programs that provide housing and community development
financial assistance when the total amount of assistance to the project exceeds a threshold of $200,000.
Consolidated Annual Performance and Evaluation Report (CAPER) (24 CFR 91.520) -- A grantee's
CAPER, submitted through the IDIS e-Con Planning Suite, is due 90 days after the close of a jurisdiction's
program year.
Condition: We were unable to obtain the following reports: SF-425, Section 3 report and CAPER.
Cause: Turnover of staff and lack of internal control over the retention of program reports.
Effect or Potential Effect: The City's failure to comply with stated reporting requirements exposes the
City to sanctions from the federal agency, including loss of funding.
Questioned Cost: None
Context: The City did not provide the abovementioned reports.
Statistical Sampling Validity: Not applicable.
Repeat of a Prior-Year Finding: Yes, 2019-001, 2018-001
Recommendation: We recommend the City establish policies and procedures that will ensure the
retention of program reports.
City's Response: The City concurs with the recommendation.
Corrective Action Plan: The City Controller drafted a grants policy which is currently under review
by the City Manager, that includes succession planning in case of staff turnover and parameters for
grant reporting compliance.
Planned Implementation Date: December 31, 2024
Responsible Person(s): City Manager, Grants Manager