Finding Text
Federal Program Name: CDBG Entitlement Grants Cluster: Community Development Block Grant (CDBG)
Assistance Listing Number: 14.218
Federal Award Identification Number and Year: B-21-MC-06-0509; B-22-MC-06-0509; Award Years 2021 and 2022
Award Period: Fiscal Year 2022-2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance (Reporting)
• Other Matter (Reporting)
Criteria or Specific Requirement: Reporting: PR29 (SF-425) reports are due to HUD quarterly and should reflect the amount of federal funds on hand as of the beginning and end of the quarter. The reports should also include the quarter's drawdowns, program income received, and federal expenditures that utilized this funding. Amounts should agree to the City's general ledger and supporting schedules.
Condition: The PR29 (SF-425) quarterly reports contained the following errors as compared to the general ledger detail and other supporting schedules: See chart in pdf for this report.
Questioned Costs: None noted.
Context: All four of the CDBG quarterly PR29 (SF-425) reports contained errors as noted in the condition section above.
Cause: The City did not utilize the appropriate reports and supporting schedules to prepare the quarterly PR29 (SF-425) reports.
Effect: The PR29 (SF-425) quarterly reports filed with HUD were inaccurate and did not show federal cash on hand.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the City implement revised policies and procedures when preparing the CDBG PR29 (SF-425) quarterly reports to ensure proper reporting of program income on hand and the appropriate federal expenditures utilizing both federal grant and program income.