Finding Text
Finding No.: 2025-004 Identification of the federal program: Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: B23ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting - CDBG Financial Summary Report Criteria or specific requirement (including statutory, regulatory or other citation): Grantees are required to submit an accurate annual performance and evaluation report through the Integrated Disbursement and Information System. Conditions: 1. For two (50%) of four key line items in the PR26 – CDBG Financial Summary Report, Program Year 2024, Grant No. B23ST660001, the reported amounts did not agree to the underlying accounting records. This resulted in differences in reported disbursements, total obligations, and credit activity, and led to understated Public Service (PS) cap calculations and Planning and Administration (PA) obligations exceeding the 20 percent limit. Line Item Reported Amount Auditor Calculation Per GL Details Over (Under) Reported Variance 36 Percent Funds Obligated for PS Activities (2.05%) 9.84% (11.89%) 46 Percent Funds Obligated for PA Activities Line 11.89% 25.06% (13.17%) 2. For one (50%) of two key line items in the PR26 – CDBG-CV Financial Summary Report, Program Year 2024, Grant No. B20SW660001, the reported amounts do not agree with underlying accounting records. This resulted in differences between the reported disbursements and actual expenditures for Planning and Administration (PA) activities, resulting for inaccuracy of amounts reported to available cap calculations. Line Item Reported Amount Auditor Calculation Per GL Details Over (Under) Reported Variance 21 Percent of Funds Disbursed for PA Activities (Line 19/Line20) 4.82% 5.20% (0.39%) Finding No.: 2025-004, continued Cause: GHURA did not effectively implement monitoring controls over compliance that is primarily caused by the lack of timely reconciliation and end-user adjustments between IDIS and general ledger records. Effect or potential effect: The failure to effectively monitor and reconcile IDIS and general ledger records may result in inaccurate reporting of disbursements, obligations, and overall grant balances. Questioned Costs: $0 Identification as a repeat finding: 2024-001 Recommendation: Responsible personnel should strengthen monitoring controls over compliance with applicable reporting requirements. Responsible personnel should implement and enforce formal, periodic reconciliations between IDIS and the general ledger to ensure that reported disbursements, obligations, and available balances agree with underlying accounting records. These procedures should include timely end-user adjustments, supervisory review, and documented verification of totals prior to PR26 submissions. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Views of Responsible Officials: Management partially concurs with the findings. Refer to Management’s position as outlined in the Corrective Action Plan. Conclusion: Management submitted additional information on June 28, 2026; however, due to time constraints, we were unable to sufficiently corroborate and evaluate the documentation provided. Accordingly, the finding remains, as there was insufficient evidence to support a determination of compliance as of the audit date.