Finding Text
U.S. Department of Housing and Urban Development - Lead Hazard Reduction Grant Program (ALN #14.905) & Community Development Block Grants/ Entitlement Grants Cluster (ALN #14.218)
Condition: The City did not accurately submit Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Reports for the years ended December 31, 2022.
Criteria: Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Report instructions require the reporting to be on either the cash basis or the accrual basis. The Form SF-425 submissions erroneously omitted expenses incurred and paid during the incorrect financial reporting period.
Cause: During 2021 & 2022, City personnel did not have an accurate understanding as to the basis of the reporting. Additionally, the City staff experienced some technical challenges with the HUD information technology platforms that created additional delays.
Effect: The City reported cash basis expenses in its programs in the incorrect year during 2021 and worked to catch up the reporting during the 2022 year.
Questioned Costs: This finding does not result in questioned costs.
Recommendation: The City should implement procedures to ensure that all required reports are completed consistent with the noted basis of accounting.
Views of Responsible Officials: The City acknowledges these report forms were submitted incorrectly and understands the correct methodology to follow on such future submissions. Procedures have been developed to ensure timely and accurate submissions of the reports.