Finding No.: 2024-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: CDBG - Entitlement/ Special Purpose Grants Cluster Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2023, Grant No. B22ST660001, do not agree with underlying accounting records and resulted in differences between the reported disbursements, total obligations and credit, and result in obligations for planning and administration (PA) activities exceeding the 20-percent ceiling. Line Item Reported Amount Auditor Calculation Per GL Details Over (Under) Reported Variance 08 Total Available $13,859,763 $12,742,302 $1,117,460 09 Disbursements other than Section 108 Repayments and Planning/Administration $6,253,357 $6,202,170 $51,188 11 Amount subject to Low/Mod Benefit $6,253,357 $6,202,170 $51,188 12 Disbursed in IDIS for Planning/Administration $268,339 $681,220 $(412,880) 15 Total Expenditures $7,856,151 $6,883,389 $972,761 16 Unexpended Balance $6,003,612 $5,858,913 $144,699 19 Disbursed for other Low/Mod activities $3,917,753 $4,798,550 $(880,797) 21 Total Low/Mod Credit $3,917,753 $4,798,550 $(880,797) 22 Percent Low/Mod Credit 63% 77% (15%) 27 Disbursed in IDIS for Public Services $330,151 $375,895 $(45,744) 31 Total PS Obligations $555,858 $375,895 $179,963 36 Percent Funds Obligated for PS Activities 17% 12% 5% 37 Disbursed in IDIS for Planning/Administration $268,339 $681,220 $(412,880) 46 Percent Funds Obligated for PA Activities Line -0.13% 21.38% (21.51%) Finding No.: 2024-001, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: CDBG - Entitlement/ Special Purpose Grants Cluster Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting Questioned Costs: $0 Condition, continued: 2. Subawards are not reported in FSRS, as follows: Transactions Tested Subaward Not Reported Dollar Amount of Tested Transactions Subaward Not Reported 4 4 $3,178,901 $3,178,901 Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is not in compliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2023-001 Recommendation: Responsible personnel should strengthen monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: Refer to GHURA’s corrective action plan.