FAC Explorer

Finding 1153314 (2024-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-09-17
Audit: 366553
Organization: County of Trinity (CA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The County failed to adequately monitor six Community Development Block Grant loans, lacking necessary documentation for compliance.
  • Impacted Requirements: This oversight violates CDBG monitoring requirements outlined in OMB 24 CFR Part 570.483 and 570.490.
  • Recommended Follow-up: Implement a compliance checklist for loan monitoring to ensure timely documentation and adherence to CDBG provisions.

Finding Text

Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for six of the loans. Questioned costs: Known questioned costs of $565,610, the value of the six loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected six loans to test continuing compliance and found that six of those loans did not have adequate documentation to show continued monitoring occurred. Cause: The inspections of properties are not conducted due to staffing and funding constraints so proof of compliance with HUD standards is unavailable. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2023-004 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Questioned Costs HUD Housing Programs Matching / Level of Effort / Earmarking Subrecipient Monitoring

Other Findings in this Audit

  • 1153311 2024-004
    Material Weakness Repeat
  • 1153312 2024-004
    Material Weakness Repeat
  • 1153313 2024-004
    Material Weakness Repeat
  • 1153315 2024-004
    Material Weakness Repeat
  • 1153316 2024-004
    Material Weakness Repeat
  • 1153317 2024-004
    Material Weakness Repeat
  • 1153318 2024-005
    Material Weakness Repeat
  • 1153319 2024-005
    Material Weakness Repeat
  • 1153320 2024-005
    Material Weakness Repeat
  • 1153321 2024-005
    Material Weakness Repeat
  • 1153322 2024-005
    Material Weakness Repeat
  • 1153323 2024-005
    Material Weakness Repeat
  • 1153324 2024-005
    Material Weakness Repeat
  • 1153325 2024-006
    Material Weakness Repeat
  • 1153326 2024-007
    Material Weakness Repeat
  • 1153327 2024-008
    Material Weakness Repeat
  • 1153328 2024-008
    Material Weakness Repeat
  • 1153329 2024-009
    Material Weakness Repeat
  • 1153330 2024-009
    Material Weakness Repeat
  • 1153331 2024-009
    Material Weakness Repeat
  • 1153332 2024-009
    Material Weakness Repeat
  • 1153333 2024-009
    Material Weakness Repeat
  • 1153334 2024-009
    Material Weakness Repeat
  • 1153335 2024-009
    Material Weakness Repeat
  • 1153336 2024-010
    Material Weakness Repeat
  • 1153337 2024-011
    Material Weakness Repeat
  • 1153338 2024-011
    Material Weakness Repeat
  • 1153339 2024-011
    Material Weakness Repeat
  • 1153340 2024-011
    Material Weakness Repeat
  • 1153341 2024-011
    Material Weakness Repeat
  • 1153342 2024-011
    Material Weakness Repeat
  • 1153343 2024-011
    Material Weakness Repeat
  • 1153344 2024-011
    Material Weakness Repeat
  • 1153345 2024-011
    Material Weakness Repeat
  • 1153346 2024-011
    Material Weakness Repeat
  • 1153347 2024-011
    Material Weakness Repeat
  • 1153348 2024-011
    Material Weakness Repeat
  • 1153349 2024-011
    Material Weakness Repeat
  • 1153350 2024-011
    Material Weakness Repeat
  • 1153351 2024-011
    Material Weakness Repeat
  • 1153352 2024-011
    Material Weakness Repeat
  • 1153353 2024-011
    Material Weakness Repeat
  • 1153354 2024-011
    Material Weakness Repeat
  • 1153355 2024-011
    Material Weakness Repeat
  • 1153356 2024-011
    Material Weakness Repeat
  • 1153357 2024-012
    Material Weakness Repeat
  • 1153358 2024-012
    Material Weakness Repeat
  • 1153359 2024-012
    Material Weakness Repeat
  • 1153360 2024-012
    Material Weakness Repeat
  • 1153361 2024-012
    Material Weakness Repeat
  • 1153362 2024-012
    Material Weakness Repeat
  • 1153363 2024-012
    Material Weakness Repeat
  • 1153364 2024-013
    Material Weakness Repeat
  • 1153365 2024-013
    Material Weakness Repeat
  • 1153366 2024-013
    Material Weakness Repeat
  • 1153367 2024-013
    Material Weakness Repeat
  • 1153368 2024-013
    Material Weakness Repeat
  • 1153369 2024-013
    Material Weakness Repeat
  • 1153370 2024-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $2.83M
14.239 Home Investment Partnership Program (outstanding Loan) $2.43M
93.659 Adoption Assistance $1.62M
10.665 Schools and Roads - Title I $1.57M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $1.12M
21.032 Local Assistance and Tribal Consistency Fund $927,215
14.228 Community Development Block Grants/entitlement Grants (outstanding Loan) $800,520
93.658 Arra-Foster Care Title IV-E $768,782
93.959 Block Grants for Prevention and Treatment of Substance Abuse (sapt) $432,887
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $402,451
93.658 Foster Care Title IV-E $359,923
10.691 Usda Forest Service Good Neighbor Agreement $238,350
93.958 Substance Abuse and Mental Health Services Administration (samsha) $233,764
16.575 Crime Victim Witness Program $219,710
93.889 Hospital Preparedness Program (hpp) $177,020
93.069 Public Health Emergency Preparedness Program (phep) $171,602
93.967 California Strengthening Public Health Initiative (casphi) $161,459
20.509 Formula Grants for Rural Areas Cares Act $109,388
20.205 Emergency Relief Program $101,283
93.268 Covid-19 Immunization Cooperative Agreements - Covid-19 Round 3 $101,071
20.509 Formula Grants for Rural Areas $99,861
93.323 Covid-19 Public Health Emergency Response - Elc Expansion & Strategy Totals $82,859
93.977 Cdc/public Health Emergency Preparedness - Dis Wfd $76,682
10.665 Schools and Roads - Title III $74,397
93.994 Maternal and Child Health Services Block Grant to the States $71,389
15.512 Technical Assistance Grant -Bureau of Rec $63,594
93.563 Child Support Enforcement $63,410
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds Under the American Rescue Plan Act $61,940
93.391 Cdc/public Health Emergency Preparedness - California Equitable Recovery Initiative $55,340
97.036 Homeland Security Grant Program $53,408
93.590 Community Based Child Abuse Prevention Grants $51,663
97.042 Emergency Management Performance $49,697
16.585 Adult Drug Treatment Court $42,231
20.106 Covid-19 Corona Virus Aid, Relief and Economic Security Act $40,076
93.667 Social Services Block Grant $39,200
93.959 Covid-19 Sabg Supplemental - Arpa $37,943
93.674 Chafee Foster Care Independence Program $27,495
93.268 Covid-19 Immunization Cooperative Agreements - Covid-19 Round 4 $25,818
16.922 Domestic Cannabis Eradication Supression Program (cep) $25,371
93.268 Immunization Cooperative Agreements - Vpd Prevention/control $23,821
20.616 Child Passenger Safety Program $21,482
97.067 Homeland Security Grant Program $18,999
93.747 Elder Abuse Prevention Interventions Program $18,518
20.205 Hazzard Elimination Safety Program $17,480
93.354 Covid-19 Public Health Emergency Response - Wfd $16,920
84.027 Special Education Grants (idea) $16,329
93.090 Guardianship Assistance $14,937
93.778 Medical Assistance Programs $14,913
93.778 Medical Assistance Programs - Title Xix $12,354
10.704 Usda Forest Service CO-Op Le Patrol Shasta Trinity Nf $11,899
93.645 Stephanie Tubbs Jones Child Welfare Services Program $11,541
14.228 Community Development Block Grant $10,548
20.205 Highway Planning and Construction $9,721
10.025 Glassy-Winged Sharpshooter (gwss) Contract $9,435
93.778 Medical Assistance Programs - Chdp $8,948
93.788 Trinity Opioid Safety Coalition $6,462
10.704 Usda Forest Service CO-Operative Le Controlled Substance Six Rivers Nf $3,791
10.704 Usda Forest Service CO-Op Le Controlled Substance Shasta-Trinity $3,437
93.778 Medical Assistance Programs - Foster Care $3,045
93.767 Children's Health Insurance Program $2,461
10.025 Detection Trapping Contract $1,958
20.106 Airport Improvement Program Faa $1,885
93.556 Promoting Safe and Stable Families $1,274
10.572 Wic Farmers' Market Nutrition Program (fmnp) $190