Finding Text
Finding No. 2023-007 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 32003236 2023 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)) during the grant period.
Condition
The owner paid 1 vendor invoice of 79 tested, that was not incurred during the grant period which was charged to and reimbursed by PHB under their CDBG Grant.
Cause
Management did not ensure that the invoices were for the appropriate grant period.
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: $35.
Context
In connection with the procedures applied to compliance testing, there was 1 vendor invoice of 79 tested that was not for cost incurred during the grant period.
Repeat Finding: No
Recommendation
Management should follow procedures to ensure each vendor invoice is incurred during the grant period.
Views of Responsible Officials
Community Builders Program cell phone billing is part of the larger REACH billing system and this does create some challenges in approving billing as our IT department approves this billing. We are putting systems in place for the Community Builders Program Manager will work closer with the finance team to ensure all billing involves are for the correct time periods.