Finding 1130729 (2024-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-04-07

AI Summary

  • Core Issue: Six out of eight required CDBG reports were submitted late, violating deadlines.
  • Impacted Requirements: Reports must be submitted within specific timeframes as per federal regulations and grant agreements.
  • Recommended Follow-up: Establish a reminder system for management and officials to ensure timely report submissions.

Finding Text

2024-003 Timely Report Submission ALN 14.228 Community Development Block Grant/State’s Program and Non-entitlement Grants in Hawaii Department of Housing and Urban Development Passed through Florida Department of Economic Opportunity Fiscal Year 2024 Funding Criteria: Per 2 CFR Part 200.303, requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. The CDBG award agreement requires quarterly performance reporting within 10 days of the end of the fiscal quarter, monthly progress reports and due 10 days after month end, annual compliance certification is due 60 days after year end, and HUD-2516 is due every April 15th and October 15th. Condition: Six of the eight CDBG reports tested were not submitted by the required deadlines. Cause of the condition: The City does not have established procedures to prompt management or City Officials to submit reports by the required deadlines. Potential effect of condition: The granting agency could rescind funding for continued noncompliance. Questioned Costs: None noted. Recommendation: The City should create a process to alert/remind management and City officials to meet the reporting requirements and deadlines. Management Response: The City recognizes the need for timely grant reporting and has recently added a Grants Administrator position to the Finance Department who has created a grant report tracking process.

Categories

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 554287 2024-003
    Significant Deficiency
  • 554288 2024-003
    Significant Deficiency
  • 1130730 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $750,000
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $170,704
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $59,793