Finding Text
Criteria or Specific Requirement:
Recipients of the Community Development Block Grant (CDBG) must maintain adequate records and documentation in support of all costs, as set forth in 24 CFR 570.506.
Condition:
During the course of the audit, it was noted the City failed to retain supporting documentation for CDBG expenditures.
Questioned Costs:
$4,900.
Context:
Of the eleven expenses selected for testing, it was noted the City did not retain documentation for one expense totaling $4,900.
Effect:
Without supporting documentation, the expenditure cannot be sustained as an allowable cost.
Cause:
The City's review procedures over grant expenses were not operating effectively to ensure that documentation was retained for all grant expenses.
Recommendation:
We recommend the City take steps to ensure support is retained for all grant expenses.
Management’s Response:
The City will implement an internal procedure to ensure proper documentation is retained for all grant expenses.