Finding Text
CONDITION: We tested the annual PR-26 and quarterly PR-29 CDBG financial reporting forms at the City to ensure the City was correctly preparing and submitting these forms to the US Department of Housing and Urban Development (“HUD”). During our testing we noted numerous discrepancies where the City’s fiscal year 2024 forms did not tie to prior year information or to other information provided during our testing. CRITERIA, CONTEXT AND EFFECT: The City must submit the annual PR-26 and quarterly PR-29 forms to HUD. These forms are relied on to ensure the City meets certain spending requirements and that the City doesn’t retain too much in carryover funds. CAUSE: The City did not have proper internal controls in place to make sure these reports were being properly reviewed to ensure amounts reported were accurate and complete. RECOMMENDATION: We would encourage the City Office of Management and Budget to work with the CDBG department to ensure the PR-26 and PR-29 financial reporting forms are accurate and complete. RESPONSE: The City agrees with this finding and will adhere to the corrective action plan on page 195 in this report.