Finding Text
Finding 2022-001: Continuing Loan Compliance Noncompliance/Significant Deficiency Federal Award Information: Assistance Listing Number: 14.218 Program Title: CDBG ? Entitlement Grants Cluster Federal Award Year(s): FY 2021-22 Name of Federal Agency: U.S. Department of Housing and Urban Development Passed through: State of California Department of Housing and Community Development Criteria or Specific Requirement: The City was unable to provide compliance supporting documentation for the CDBG ? Entitlement Grants Cluster loan compliance requirements for the year ended June 30, 2022, specifically verification of current required insurance policies. Condition: We noted that for the loans selected, the City did not have record of verifying current required insurance policies during the year, and did not have data on file for some of the items. Cause of the Condition: The City did not have the necessary documentation on file. Effect or Possible Effect: Adequate supporting documentation of outstanding loans are not being effectively maintained and archived by City personnel. Context: The City was unable to provide verification of current insurance policies and did not have all policies on file for the loans selected. Repeat Finding: This is a new finding for the fiscal year ended June 30, 2022. Recommendation: We recommend that management monitors each loan to ensure that the City maintains the most up-to-date information, and remains in compliance with all necessary requirements of the loan program. Management?s Response and Corrective Action: The City agrees with the finding and will review and monitor each loan to maintain the most up-to-date information and comply with all requirements of the loan program.