Finding Text
Criteria: The Office of Management and Budget (OMB) 2 CFR Part 200, Appendix XI sections 3.2-L-1
and 4-14.218-10 states: "Recipients must use the standard financial reporting forms or such other forms as may be authorized by OMB (approval is indicated by an OMB paperwork control number on the form) when reporting to the Federal awarding agency. Each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the Federal awarding agency."
For CDBG, the City is required to submit the following reports.
* SF-425 - Federal Financial Report
* C04PR03 - Activity Summary Report
* C04PR26 - CDBG Financial Summary
* HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-
Income Persons, (OMB No. 2529-0043)
U.S. Department of Housing and Urban Development (HUD) guidance titled, "Using IDIS to Prepare the
Consolidated Plan, Annual Action Plan, and CAPER/PER," states:
"Within 90 days after the end of its program year, a grantee must submit a Consolidated Annual
Performance and Evaluation Report (CAPER). The primary purpose of the CAPER is to report on progress in meeting one-year goals described in the Annual Action Plan and long-term goals
described in the Consolidated Plan."
Condition: The City was unable to provide the required SF-425 Federal Financial Report. We were
therefore unable to perform testing on report information accuracy.
Cause: Lack of internal control over the preparation, review, and submission of the financial reports.
Effect or Potential Effect: The City's failure to comply with stated rules and regulations over the required
reports increases the risk that inaccurate or incomplete information will be reported.
Questioned Cost: No costs identified
Context: The SF-425 Federal Financial Report was not available for review. Auditor therefore cannot
perform reporting testing on the SF-425 report.
Upon search made in hudexchange.info, the online platform for HUD program information, no CAPER
appears to have been submitted for the 2016 program year (FY 2016-2017). The CAPER was completed
and timely submitted for the 2017 program year (FY 2017-2018).
The City was able to provide the C04PR03 and C04PR26 reports.
Repeat of a Prior-Year Finding: 2017-001, 2016-002, 2015-003, 2014-005