Finding 1075863 (2023-006)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: ACED failed to report all program income in the Cash on Hand Reports, missing $861,443 of the total $913,127 for 2023.
  • Impacted Requirements: Compliance with CDBG grant rules, which mandate accurate reporting and use of program income for expenditures before accessing additional funds.
  • Recommended Follow-Up: ACED should ensure accurate identification and reporting of program income, review reports for accuracy before submission, and implement corrective actions as outlined in the management response.

Finding Text

Condition: ACED did not include all program income in the Cash on Hand Reports. Based on JDE accounting records and ACED and Authority supporting loan records, CDBG program income was calculated at $913,127 for calendar year 2023. The program income received reported on the four quarterly Cash on Hand Reports for 2023 totaled $9,715 and an additional $41,969 was included on ACED reports in January 2024. The remaining difference of $861,443 was not included in the Cash on Hand Reports. In addition, the program income cash on hand balance at the end of the quarter was not properly carried to the program income beginning balance on the next quarter’s report for any of the four quarters in the program year. Criteria: CDBG grant recipients are required to treat principal and interest repayments on CDBG program funded loans as program income. To the extent that CDBG-funded loans are not part of a revolving loan program, the related program income is to be used to finance CDBG program expenditures before additional entitlement funds are utilized. Cause: As in the prior year’s CDBG audit, there has been turnover in the staff, and human error has led to reporting errors. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: ACED should take steps to ensure that all program income is identified on the modified accrual basis of accounting in the accounting system, properly reported as program income, and used to finance CDBG program expenditures before using entitlement funds. Reports should be reviewed for accuracy prior to submission to HUD. Management Response: Management agrees with the finding, see attached Corrective Action Plan.

Categories

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking Program Income

Other Findings in this Audit

  • 499414 2023-001
    Material Weakness Repeat
  • 499415 2023-002
    Material Weakness
  • 499416 2023-003
    Material Weakness
  • 499417 2023-003
    Material Weakness
  • 499418 2023-003
    Material Weakness
  • 499419 2023-004
    Material Weakness Repeat
  • 499420 2023-005
    Material Weakness Repeat
  • 499421 2023-006
    Material Weakness
  • 499422 2023-007
    Material Weakness
  • 499423 2023-008
    Material Weakness
  • 499424 2023-008
    Material Weakness
  • 499425 2023-009
    Material Weakness
  • 499426 2023-009
    Material Weakness
  • 499427 2023-010
    Material Weakness
  • 499428 2023-010
    Material Weakness
  • 499429 2023-011
    Material Weakness
  • 499430 2023-012
    Material Weakness
  • 499431 2023-013
    Material Weakness
  • 499432 2023-013
    Material Weakness
  • 499433 2023-013
    Material Weakness
  • 1075856 2023-001
    Material Weakness Repeat
  • 1075857 2023-002
    Material Weakness
  • 1075858 2023-003
    Material Weakness
  • 1075859 2023-003
    Material Weakness
  • 1075860 2023-003
    Material Weakness
  • 1075861 2023-004
    Material Weakness Repeat
  • 1075862 2023-005
    Material Weakness Repeat
  • 1075864 2023-007
    Material Weakness
  • 1075865 2023-008
    Material Weakness
  • 1075866 2023-008
    Material Weakness
  • 1075867 2023-009
    Material Weakness
  • 1075868 2023-009
    Material Weakness
  • 1075869 2023-010
    Material Weakness
  • 1075870 2023-010
    Material Weakness
  • 1075871 2023-011
    Material Weakness
  • 1075872 2023-012
    Material Weakness
  • 1075873 2023-013
    Material Weakness
  • 1075874 2023-013
    Material Weakness
  • 1075875 2023-013
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $41.92M
14.267 Continuum of Care Program $23.23M
20.205 Highway Planning and Construction $21.65M
93.658 Foster Care Title IV-E $18.86M
93.563 Child Support Services $16.73M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $16.38M
93.659 Adoption Assistance $13.89M
93.600 Head Start $13.71M
93.558 Temporary Assistance for Needy Families $13.03M
14.218 Community Development Block Grants/entitlement Grants $11.35M
21.023 Emergency Rental Assistance Program $8.35M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $7.26M
93.667 Social Services Block Grant $4.69M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $4.00M
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $3.90M
93.090 Guardianship Assistance $3.41M
93.495 Community Health Workers for Public Health Response and Resilient $3.26M
93.958 Block Grants for Community Mental Health Services $2.91M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $2.56M
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $2.32M
97.067 Homeland Security Grant Program $1.87M
14.239 Home Investment Partnerships Program $1.83M
93.268 Immunization Cooperative Agreements $1.52M
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $1.33M
10.569 Emergency Food Assistance Program (food Commodities) $1.33M
84.181 Special Education-Grants for Infants and Families $1.16M
93.738 Pphf: Racial and Ethnic Approaches to Community Health Program Financed Solely by Public Prevention and Health Funds $1.10M
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1.08M
14.905 Lead Hazard Reduction Demonstration Grant Program $1.05M
94.006 Americorps State and National 94.006 $1.01M
93.052 National Family Caregiver Support, Title Iii, Part E $963,212
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $907,010
93.994 Maternal and Child Health Services Block Grant to the States $879,306
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $859,689
21.027 Coronavirus State and Local Fiscal Recovery Funds $771,528
93.069 Public Health Emergency Preparedness $732,517
93.053 Nutrition Services Incentive Program $633,980
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $568,712
94.016 Americorps Seniors Senior Companion Program (scp) 94.016 $551,526
16.922 Equitable Sharing Program $531,862
66.001 Air Pollution Control Program Support $500,000
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $491,764
14.889 Choice Neighborhoods Implementation Grants $484,232
93.788 Opioid Str $429,304
93.150 Projects for Assistance in Transition From Homelessness (path) $416,097
93.556 Marylee Allen Promoting Safe and Stable Families Program $412,929
93.940 Hiv Prevention Activities Health Department Based $366,336
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $349,153
16.738 Edward Byrne Memorial Justice Assistance Grant Program $347,073
93.136 Injury Prevention and Control Research and State and Community Based Programs $326,580
16.741 Dna Backlog Reduction Program $296,619
97.042 Emergency Management Performance Grants $295,267
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $281,330
16.833 National Sexual Assault Kit Initiative $270,542
17.259 Wioa Youth Activities $268,008
93.778 Medical Assistance Program $251,385
14.231 Emergency Solutions Grant Program $251,000
93.991 Preventive Health and Health Services Block Grant $213,294
20.600 State and Community Highway Safety $212,764
93.070 Environmental Public Health and Emergency Response $193,425
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $172,163
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation�s Health $164,536
16.528 Enhanced Training and Services to End Violence and Abuse of Women Later in Life $151,782
93.071 Medicare Enrollment Assistance Program $151,664
16.123 Community-Based Violence Prevention Program $143,095
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $141,576
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $133,505
16.588 Violence Against Women Formula Grants $131,354
95.001 High Intensity Drug Trafficking Areas Program $122,946
10.568 Emergency Food Assistance Program (administrative Costs) $118,456
21.032 Local Assistance and Tribal Consistency Fund $100,000
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $98,119
93.324 State Health Insurance Assistance Program $81,480
93.747 Elder Abuse Prevention Interventions Program $81,260
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $73,377
16.540 Juvenile Justice and Delinquency Prevention $69,673
16.015 Missing Alzheimer's Disease Patient Assistance Program $64,160
93.945 Assistance Programs for Chronic Disease Prevention and Control $44,612
93.197 Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $29,918
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $25,713
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $25,654
90.404 Hava Election Security Grants $24,465
16.812 Second Chance Act Reentry Initiative $21,756
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $19,415
10.578 Wic Grants to States (wgs) $10,726
93.334 The Healthy Brain Initiative: Technical Assistance to Implement Public Health Actions Related to Cognitive Health, Cognitive Impairment, and Caregiving at the State and Local Levels $10,185
14.276 Youth Homelessness Demonstration Program $9,420
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $6,429
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $5,576
16.575 Crime Victim Assistance $5,045
93.304 Racial and Ethnic Approaches to Community Health $1,525
93.758 Dental Sealant Project $470
93.569 Community Services Block Grant $-3,788
93.590 Community-Based Child Abuse Prevention Grants $-37,046
93.670 Child Abuse and Neglect Discretionary Activities $-536,931