Finding Text
Subsequent to June 30, 2024, management became aware that a Federal grant passed through from the Palm Beach County Board of County Commissioners (the County) and from the U.S. Department of Housing and Urban Development (HUD) via a forgivable loan entered into during the fiscal year, along with the related real property acquisition and escrow activity, had not been recorded in the appropriate period. The forgivable promissory note was funded through HUD’s Community Development Block Grant (CDBG‑CV) program, which carries specific compliance and reporting requirements. Management identified that the executed Loan Agreement had not been provided to the Agency’s Finance and Accounting personnel as intended. As a result, the Loan Agreement, the property purchase, and related compliance requirements were not communicated to the appropriate individuals who were unaware of the transaction and therefore did not record the purchase of the property or the associated debt as of June 30, 2024. Additionally, borrowings under the Loan Agreement are subject to federal single audit requirements, as the funding for the forgivable loan was provided by HUD under the CDBG‑CV program.