Finding Text
Finding No. 2023-006 - Uniform Guidance Compliance Requirement Code: A-Allowable Costs - Significant Deficiency
CDBG Entitlement Grants Cluster
Federal Assistance Listing Number #14.218
Community Development Block Grants - Entitlement Grants Cluster Entity Identifying Number Initial year Finding instances
Passed-through City of Portland, Portland Housing Bureau::
Community Develoment Block Grants/Entitlement Grants 32002765 2022 1
Criteria
Owners must use CDBG funded portion of programs to fund minor rehabilitation services to approved recipients /address' in accordance with the Rehabilitation and Preservation Activities (570.202(b)(2) and/or (11)).
Condition
The owner paid 1 vendor invoice of 79 tested, that were not listed on the CDBG Address List as reported to Portland Housing Bureau ("PHB") and charged through to and was reimbursed by PHB under their CDBG Grant.
Cause
REACH's Community Builders Program Manager did not ensure that the invoices were for an approved CDBG property.
Effect or Potential Effect
CDBG funds may be spent inappropriately potentially resulting in REACH having to repay the grants or a possible loss of future grants.
Questioned Costs: $40.
Context
In connection with the procedures applied to compliance testing, there was 1 vendor invoice of 79 tested that was not for an approved CDBG property.
Repeat Finding: Yes - Finding 2022-007
Recommendation
REACH Community Builders Program Manager should follow procedures to match each vendor invoice to the approved CDBG property listing prior to coding to CDBG and passing through for reimbursement from this grant.
Views of Responsible Officials
This instance was $40 that was in fact allocated incorrectly and the $40 spent was paid back to PHB in October 2024.