Finding Text
Reporting (Significant Deficiency/Compliance) ALN No. 14.218 – Community Development Block Grants/Entitlement Grants Criteria: The Community Development Block Grant (CDBG) program requires grantees to complete the IDIS Cash on Hand Quarterly Report and submit it to the applicable HUD field office through IDIS on a quarterly basis. The quarterly Cash on Hand report must be submitted within 30 days after the end of the reporting period. For Quarter 1, covering October 1 through December 31, the report is due January 30. Condition: During our testing of reporting requirements within the City’s Community Development Block Grant (CDBG) program, we selected a sample of four reports and noted one exception. Specifically, the City did not timely submit the required PR-29 Cash on Hand report for the first quarter. The report was due January 30, 2025; however, it was not submitted until February 14, 2025. Effect: Failure to submit the PR-29 Cash on Hand report by the required deadline results in noncompliance with federal reporting requirements and may limit HUD’s ability to timely monitor the City’s cash on hand and related CDBG grant activity. Cause: The City did not have adequate procedures in place to ensure personnel responsible for CDBG reporting were aware of applicable reporting deadlines or that required reports were monitored to ensure timely submission. Questioned Costs: $0 Recommendation: We recommend the City implement and enforce procedures to ensure all required CDBG reports are prepared, reviewed, and submitted by established deadlines to maintain compliance with program requirements. These procedures should include assigning responsibility, maintaining a reporting calendar with reminders, and implementing a secondary review to verify submission before the deadline. Repeat Finding from Prior Year(s): N/A Views of Responsible Officials: See management’s corrective action plan.