Finding Text
2024-004 Closing out of grants (Significant Deficiency) CFDA No.: 14.238 Agency: U.S. Department of Housing and Urban Development Criteria: Public Housing Authorities (PHA) are required to perform the procedures necessary to close out grants in a reasonable time frame after the grants have been fully expended. Condition: We noted that management of the Authority did not close out several fully-expended grants that related to older years as of June 30, 2024. Context: During our auditing of STEL grant expenditures, we noted that several fully-expended grants that related to older years were not duly closed out as of June 30, 2023. Upon inquiry with management, this assertion was confirmed. Effect: Management and the Board were not in compliance with the requirements of the Uniform Guidance. This noncompliance could have resulted in delays in the grant closing processes by HUD. Cause: Due to a change in management at the Authority and the training that was, and still is, required by management, older grants that were fully-expended were not duly closed out on a timely basis. Questioned costs: None. Repeat finding: This is a repeat finding. Recommendation: We recommend that management of the Authority review its processes for closing out all fully-expended grants with HUD to ensure that, in the future, when grants are fully expended, the close-out process begins shortly thereafter. Management’s response: The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management was aware that several older grants were still shown as “open” and that the close-out procedures would have to be implemented at some point. Management is evaluating its processes and procedures related to closing out grants and is planning on implementing procedures to ensure grants are properly closed. Management plans on working with the newly hired fee accountant in the future to assist with the close out of grants that have been fully expended.