Finding 1100116 (2019-007)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
$1
Year
2019
Accepted
2025-02-19
Audit: 343105
Organization: City of Mount Vernon (NY)

AI Summary

  • Core Issue: Missing documentation for drawdown amounts affects compliance with federal record-keeping requirements.
  • Impacted Requirements: Failure to maintain records as per HUD regulations could lead to disallowed costs.
  • Recommended Follow-Up: Ensure all supporting documentation is kept and reviewed before payments are made.

Finding Text

Finding 2019-007 - Significant Deficiency - Maintenance of Financial Records CFDA Number and Title: CDBG Entitlement Grants Cluster 14.218 Community Development Block Grants/Entitlement Grants Applicable Compliance Requirements: Activities Allowed or Unallowed Allowable Costs/Cost Principles Criteria: Title 24 of the United States Department of Housing and Urban Development (“HUD”) of the Code of Federal Regulations (“CFR”) §570.506(a) specifies that the grantee must keep records which provide a full description of each activity that is selected for assistance, including its location, the amount of funds budgeted, obligated and expended for the activity, and the provision of the regulations under which the activity is eligible. Condition: Our audit revealed that certain documentation supporting drawdown amounts for certain expenditures were misplaced. Cause: Constant turnover in personnel responsible for administering these programs and lack of adequate training and cross training of personnel. Effect or Potential Effect: The funding agency could disallow the costs that do not have the appropriate supporting documentation and approvals. Known Questioned Costs: $16,783 Likely Questioned Costs: Unable to determine given the significant deficiency on internal controls on compliance for this program. Recommendation: We recommend that the Agency maintain the supporting documentation for expenditures as required by the federal guidelines. Further, documentation should be reviewed and approved prior to payment. Management’s Responses: See corrective action plan.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 523673 2019-006
    Significant Deficiency Repeat
  • 523674 2019-007
    Significant Deficiency Repeat
  • 1100115 2019-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $2.60M
84.287 Twenty-First Century Community Learning Centers $1.31M
14.267 Continuum of Care Program $1.12M
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $259,926
17.259 Wioa Youth Activities $91,923
93.778 Medical Assistance Program $76,939
93.994 Maternal and Child Health Services Block Grant to the States $16,528
14.239 Home Investment Partnerships Program $10,490
16.588 Violence Against Women Formula Grants $750