Finding 1182539 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-24
Audit: 393965
Organization: City of Torrance (CA)

AI Summary

  • Core Issue: The City failed to submit the required Cash on Hand Quarterly Reports on time due to internal technical difficulties with the IDIS system.
  • Impacted Requirements: Reports were submitted late for two quarters, risking delays in federal fund remittance and violating HUD's compliance guidelines.
  • Recommended Follow-Up: The City should continue monitoring reporting deadlines and ensure system accessibility to prevent future delays.

Finding Text

Finding No. SA 2025-001 – Reporting Federal Assistance Listing Number: 14.218 Federal Program Title: Community Development Block Grants Cluster Entitlements/Special Purpose Cluster Federal Program Title: Community Development Block Grants/EntitlementGrants Federal Agency: U.S. Department of Housing and Urban Development Award Period: Fiscal year 2025 Program Identification Numbers: B-24-MC-06-0609 Criteria: Per the Compliance and Reporting Guidelines issued by U.S. Department of Housing and Urban Development (HUD), the City is required to complete the Cash on Hand Quarterly Report and submit it to the grantee’s HUD local field office through the Integrated Disbursement and Information System (IDIS). The field offices will review the report’s completeness and accuracy. The reporting frequency is the same as previously required of the SF-425, quarterly. The Quarterly Cash on Hand report must be submitted to the respective field office within 30 days after the end of the reporting period. The following Federal fiscal year quarter reporting periods will be used for all quarterly reports. Reporting Period: Quarter 1: 10/1 – 12/31; Due Date of Report: 1/30 Reporting Period: Quarter 2: 1/1 – 3/31; Due Date of Report: 4/30 Reporting Period: Quarter 3: 4/1 – 6/31; Due Date of Report: 7/30 Reporting Period: Quarter 4: 7/1 – 9/31; Due Date of Report: 10/30 Condition: The City was unable to meet the report timeline for the following reports: Required Report: Cash on Hand Report Frequency: Quarterly Period End: September 30, 2024 Due Date: October 30, 2024 Date Submitted: February 4, 2025 Lag in Days: 97 Required Report: Cash on Hand Report Frequency: Quarterly Period End: December 31, 2024 Due Date: January 30, 2024 Date Submitted: February 4, 2025 Lag in Days: 5 Cause: Delays in submitting the required Cash on Hand Quarterly Reports occurred because the City experienced internal technical difficulties that limited its ability to access and navigate the IDIS reporting module during its first year as a direct recipient of CDBG funds. These technical issues prevented the timely completion of the reports for the first two quarters, during which the City also had no Cash on Hand to report. Once the technical problems were resolved, all subsequent reports were submitted within the required 30‑day timeframe. Effect: Remittance of federal funds may be delayed due to the delayed submission of the report. Questioned Costs: None. Recommendation: We recommend that the City strictly follow and monitor the deadline for reporting submission set forth by HUD as part of its compliance requirements. Views of Responsible Officials and Planned Corrective Actions: The City acknowledges the findings and notes that the delays were the result of internal technical issues that affected timely access to the reporting system during the first two quarters. These issues have since been resolved, and the City has met all subsequent reporting deadlines. Planned Corrective Actions: Effective May 2025, the City corrected the internal technical issues that affected access to IDIS and now verifies system accessibility prior to each reporting deadline. The City will continue to perform ongoing monitoring to ensure the reporting process remains timely and compliant going forward. Date of Implementation: May 2025 Responsible Official or Department: Community Development

Corrective Action Plan

The City acknowledges the findings and notes that the delays were the result of internal technical issues that affected timely access to the reporting system during the first two quarters. These issues have since been resolved, and the City has met all subsequent reporting deadlines. Effective May 2025, the City corrected the internal technical issues that affected access to IDIS and now verifies system accessibility prior to each reporting deadline. The City will continue to perform ongoing monitoring to ensure the reporting process remains timely and compliant going forward. Date of Implementation: May 2025 Responsible Official or Department: Community Development

Categories

Reporting Subrecipient Monitoring HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
15.514 RECLAMATION STATES EMERGENCY DROUGHT RELIEF $740,000
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $694,520
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $582,820
21.016 EQUITABLE SHARING $342,731
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $192,723
97.052 EMERGENCY OPERATIONS CENTER $99,599
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $37,599
20.205 HIGHWAY PLANNING AND CONSTRUCTION $29,854
97.067 HOMELAND SECURITY GRANT PROGRAM $25,672
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $25,155
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $20,165
20.507 FEDERAL TRANSIT FORMULA GRANTS $5,180
16.922 EQUITABLE SHARING PROGRAM $3,749
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $93