Finding Text
Information of the Federal Programs:
Assistance Listing Number: 14.218
Assistance Listing Title: Community Development Block Grants - Entitlement Grants
Federal Agency: U.S. Department of Housing and Urban Development (“HUD”)
Federal Award Number and Award Year: B-21-MC-06-0536, B-22-MC-06-0536, B-23-MC-06-0536, and B-20-MW-06-0536
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation):
Pursuant to the Guidance on Cash on Hand Quarterly Report (replaced the Federal Financial Report, SF-425) and
financial reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327: Quarterly reports: Program award recipients must submit Cash on Hand Quarterly Report reports to HUD quarterly, 30 days after the reporting period end date. Each report must cover all expenditures on the cooperative agreement from the start date of the reporting period to the reporting period end date. The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates noted below:
Reporting Period - Due Date of Report
Quarter 1: 10/1-12/31 - January 30
Quarter 2: 1/1-3/31 - April 30
Quarter 3: 4/1-6/30 - July 30
Quarter 4:7/1-9/30 - October 30
Condition:
The City did not submit the required Cash on Hand Quarterly Report in a timely manner. The Quarter 2 and Quarter 3 reports were both submitted on August 1, 2024.
Cause:
During the period the City was migrating to a new Enterprise Resource Planning software (ERP). The grant accountant missed the deadline due to the ERP migration deadlines.
Effect or Potential Effect:
Delay in filing the reports resulted in noncompliance with the compliance requirements.
Questioned Costs:
None.
Context:
See condition above for context of the finding.
Identification as a Repeat Finding, If Applicable:
Not applicable.
Recommendation:
We recommend that the City update policies and procedures to strengthen the report submission process to ensure all required reports are properly reviewed and approved and submitted timely. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval.
View of Responsible Officials:
Management concurs the finding.