Finding Text
Criteria
CDBG funds (and local funds to be reimbursed with CDBG funds) cannot be obligated or expended before receiving HUD's approval of a Request for Release of Funds (RROF) and environmental certification, except for exempt activities under 24 CFR section 58.34 and categorically excluded activities under section 58.35(b) (24 CFR section 58.22).
Condition
The City was unable to provide a copy of the Release of Funds or document the Authority to Use Grant Funds (AUGF) and the Environmental Review Assessments.
Although the City conduct to provide its RROF or AUGF for the activities reviewed, HUD verify within its records that the City submitted an RROF and that HUD sent the City an AUGF for its single-family rehabilitation program. However, it recieves the City’s responsibility to maintain both documents for its records.
Cause
This lapse resulted from staff turnover and inadequate oversight.
Effect
Non-compliance with HUD environmental review requirements.
Questioned Costs
None.
Recommendation
We recommend that the City strictly monitor and maintain copies of the required certifications, HUD approvals, and environmental reviews set forth by the U.S. Department of Housing and Urban Development.
Views of responsible officials and planned corrective actions
The City will ensure the implementation of the following corrective action plan:
• Conduct training sessions and designate primary and backup staff responsible for filing and submitting the HUD reports.
• Require management review and approval of all reports prior to submission to HUD.
The Corrective Action Plan (CAP) has been implemented as of June 30th, 2024. The staff responsible for the CAP are the Accounting Manager, Hnin Phyu and the Housing Specialist, Debra Scott.