Finding 1129925 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 352165
Organization: City of Scotts Valley (CA)

AI Summary

  • Core Issue: The City failed to submit required performance and Federal Financial reports for 2024, missing the six-month deadline.
  • Impacted Requirements: Timely submission of reports is essential for compliance with grant conditions, affecting future funding opportunities.
  • Recommended Follow-Up: Implement stronger internal controls to ensure all reporting deadlines are met and maintain regular communication with HUD representatives.

Finding Text

Criteria: The grant requires that the performance report along with Federal Financial report be submitted to DRGR system every six months. Condition: For the year 2024, the City was required to submit two performance reports and Federal Financials reports, however city failed to submit any report. Cause: The City missed the deadline for the submission of the report. Context and Effect: Timely submission of the Performance report and Federal financial report is one of the grant requirements. Failure to meet this deadline impacts the City’s compliance with the grant requirements and may affect future funding. Recommendation: We recommend the City implement strong internal controls to ensure that all reporting requirements are met within the prescribed timelines. Management Response: The grant was executed in October 2023, making the first reporting period to start January 2024. The City was unable to access the DRGR portal until late April 2024. During this period, the City maintained regular communication with the HUD representative . After gaining access the data was entered into the portal and the City has remained in communications with HUD representatives. While the report was entered, there are additional steps to be able to submit. The City is actively working with DRGR staff to resolve a system issue that is not allowing us to complete the submitting process. To date, the City has not received any notification from HUD indicating that the performance reports are overdue, and they have been able to proceed with processing the reimbursement requests. The City has gained better knowledge in relation to the steps for full report submissions on the DRGR website and has strengthened internal controls on reporting requirements, and grants management in general to avoid cases like this in the future

Categories

Reporting Cash Management HUD Housing Programs

Other Findings in this Audit

  • 553483 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $770,294