Finding 369030 (2023-001)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-02-14

AI Summary

  • Core Issue: Lack of detailed time tracking for payroll related to housing rehab and affordable housing activities.
  • Impacted Requirements: Failure to maintain sufficient records as required by 24 CFR 570.506 (a), risking erroneous charges and potential unallowed costs.
  • Recommended Follow-Up: Implement a system to retain detailed time records for all activities, ensuring they include descriptions and locations, and are traceable to submitted time sheets.

Finding Text

Condition: A prior year Community Development Block Grant (CDBG grant) was monitored by HUD. As a result of the monitoring, the client was made aware that additional detail may be needed to better support the payroll related expenditures charged to housing rehab and affordable housing allowance activities. Detailed time is not being kept of the amount of time spent on each specific activity, providing a description of the activity assisted, including its location (address). Criteria: Per 24 CFR 570.506 (a) Grantee shall establish and maintain sufficient records to enable the Secretary to determine whether the recipient has met the requirements of this part. At a minimum, the following records are needed: (a) records providing a full description of each activity assisted (or being assisted) with CDBG funds, including its location (if the activity has a geographical locus). Cause of Condition: Time allocated to the housing rehab and affordable housing function is documented on time sheets submitted to the Finance Department. However, the detail of the time charged to the specific activities is not being retained in a distinct orderly fashion that can be reconciled to the time charged per the time sheet. Effect: Administrative costs under the CDBG grant have a 20% cap. Amounts could be erroneously charged to an activity thereby reducing the amount charged to administrative costs. Administrative costs if they had been reported correctly could exceed the cap resulting in unallowed costs. Recommendation: Detail time of all housing rehabilitation, affordable housing and any other activities charged with payroll costs should be retained. The records of the time should include a full description of the activity assisted including its location (if the activity has a geographical locus). The detail time retained should be easily traceable to the time charged to each activity per the time sheets submitted to the Finance Department. Views of Responsible Officials and Planned Corrective Actions: The City continues to work with a consultant to assist staff with administration of the Community Development Block Grants program. Community Development has also hired a new Assistant Director and Grant Coordinator during FY 24 who have worked with the consultant to review processes and implement changes as necessary. Process reviews include reviewing methods for tracking and reporting time and activity spent on the programs.

Categories

Subrecipient Monitoring HUD Housing Programs Reporting

Other Findings in this Audit

  • 369029 2023-001
    Significant Deficiency Repeat
  • 945471 2023-001
    Significant Deficiency Repeat
  • 945472 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.08M
14.218 Community Development Block Grants/entitlement Grants $1.95M
20.507 Federal Transit_formula Grants $1.57M
14.218 Covid-19 Community Development Block Grants/entitlement Grants $1.30M
16.922 Equitable Sharing Program $247,426
14.231 Emergency Solutions Grant Program $207,222
20.106 Airport Improvement Program $168,539
20.600 State and Community Highway Safety - Community - Based Traffic Safety Enforcement and Education $89,233
97.044 Assistance to Firefighters Grant $86,956
16.738 Edward Byrne Memorial Justice Assistance Grant Program $61,567
20.106 Faa American Resuce Plan Act Funding for Airports $59,000
20.205 Highway Planning and Construction $50,545
20.600 State and Community Highway Safety - Community -Based Traffic Safety Enforcement and Education $40,405
14.239 Home Investment Partnerships Program $31,811
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $29,897
20.106 Acrgp Coronavirus Response Grant Program $23,000
20.616 National Priority Safety Programs - Pedestrian Enforcement and Education $20,802
94.014 Martin Luther King JR Day of Service Grants $12,755
14.231 Covid-19 Emergency Solutions Grant Program $12,259
20.614 National Highway Traffic Safety Administration (nhtsa) Discretionary Safety Grants - Bicycle and Pedestrian Safety $9,979
45.024 Promotion of the Arts_grants to Organizations and Individuals - Nea Arts Engagement in American Communities (aeac) $6,292
10.680 Cooperative Forest Health Program $5,000
93.044 Covid - 19 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $3,788
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $2,690
14.261 Homeless Management Information Systems Technical Assistance $609