Finding Text
Criteria: Per 24 CFR 570.902, a grantee is determined to not be carrying out its Community Development Block Grant activities in a timely manner, if sixty days prior to the end of the grantee's current program year, the amount of entitlement grant funds available to the City under grant agreements but undisbursed by the U.S. Treasury is more than 1.5 times the entitlement grant amount for its program year, and if the grantee fails to demonstrate to the grantor’s satisfaction that the lack of timeliness has resulted from factors beyond the grantee's reasonable control. Condition: We tested whether the City is in compliance with the timeliness standard pursuant to 24 CFR 570.902 by calculating the ratio of unspent funds in its line of credit to the amount of its current program year entitlement grant as of December 31, 2024. We noted the ratio is above the maximum ratio of 1.5. Cause: Program managers inadequately monitored program spending in order to timely initiate projects as laid out in the Action Plan. Effect: If the City does not meet the 1.5 timeliness requirement at the time the next 60-day ratio is measured, a future grant may be reduced by 100% of the amount exceeding the 1.5 standard. Perspective Information: This finding represents a systemic issue. Identification of Repeat Finding: 2023-001 Recommendation: We recommend that the City implement procedures to ensure the timeliness standard is met. View of Responsible Official: The City is in agreement with this finding and will complete and implement a corrective action plan.