Finding Text
Criteria or Specific Requirement:
United States Executive Order 12432 requires Federal agencies, including HUD, to develop Minority Business Development Plans which establish minority enterprise (MBE) development objectives. In order to comply with the Executive Order, HUD requires grantees to submit an MBE report annually within 10 days of the end of the City’s applicable reporting period.
Condition:
The City did not file the Annual MBE Report during the year ended December 31, 2023.
Context:
No proof of submission of the Annual MBE Report was provided by the City upon request by the auditor.
Cause:
The cause was a combination of staff changes and an error in not scheduling the completion of the required report.
Effect or Potential Effect:
The City is noncompliant with HUD requirements to submit an annual MBE Report.
Questioned Costs: None.
Recommendation:
The City should submit the annual MBE Report to the local HUD Office within ten (10) days after the end of the annual reporting period.
Views of Responsible Officials of the Auditee:
The City will ensure that the Annual MBE Report is filed.