Finding Text
Finding Number: 2023‐003
Repeat Finding: No
Program Name/Assistance Listing Title: CDBG‐Entitlement Grants Cluster
Assistance Listing Number: 14.218
Federal Agency: U.S. Department of Housing and Urban Development
Federal Award Number: B‐21‐MC‐04‐0503
Pass‐Through Agency: N/A
Questioned Costs: $0
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirement: Program Income
Criteria
24 CFR §570.504 requires the City to accurately record the receipt and expenditure of program
income as part of financial transactions of the CDBG program.
Condition
Program income on the PR26 – CDBG Financial Summary Report for Program Year 2021 was not
reported.
Cause
The Community Assistance Office experienced turnover and vacancies in key positions responsible
for reporting during fiscal year 2021. Training was needed for program employees to fully understand
reporting responsibilities for the City. In some cases information was not retained and required
recreation.
Effect
The City was not in compliance with 24 CFR §570.504. The City had to revise the PR26 for Program
Year 2021.
Context
The City did not report program income of $310,165 received during fiscal year 2021‐22 on the
PR26 – CDBG Financial Summary Report. The program income was properly reported in the City’s
financial records. The City revised the PR26 report for Program Year 2022 in October 2023 to correct
the errors.
Recommendation
The Community Assistance Office should continue to review reports for accuracy and completeness
prior to submission. The City should dedicate sufficient time and resources to ensure compliance.
Views of Responsible Officials
See Corrective Action Plan.