Finding 1191489 (2025-001)

Criteria: In accordance with 24 CFR section 576.203, the recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: The City did not pay subrecipient for allowable costs within 30 days as required by 24 CFR section 576.203. Context: We selected 4 subrecipients and a total 10 subrecipient payments for testing and noted 5 payments were not paid within 30 days. Cause: Based on discussions with City personnel, it was noted that the delay in payments was due to a lack of diligence in following the City’s policy and procedures to complete timely reviews upon receipt of the completed payment request. Effect: Failure to make timely payments resulted in noncompliance with the subrecipient monitoring requirement. Questioned Costs: None Identification as a Repeat Finding, if applicable: See finding 2024-003 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend that the City be diligent in following their policy and procedures to ensure timely reviews and compliance with the requirement. Views of Responsible Officials: The City agrees with finding, and the unabridged version of their response can be found in the Corrective Action Plan. Please see the Corrective Action Plan issued by the City.