Finding 395686 (2023-008)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-05-02
Audit: 305307
Organization: City of New Iberia (LA)

AI Summary

  • Issue: The City failed to disburse LCDBG funds within the required three working days.
  • Requirements Impacted: Non-compliance with the 2023 LCDBG Grantee Handbook regarding timely payments.
  • Recommended Follow-Up: Implement and monitor new policies and procedures to ensure timely fund disbursement.

Finding Text

Criteria The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires payments for expenditures to be disbursed within three working days of the receipt of the LCDBG funds. Condition The City did not disburse the funds in a timely manner. Cause There were inadequate policies and procedures in place to ensure that the disbursements were made timely. Effect The City did not comply with the grant agreement regarding timely disbursement of LCDGB funds. Context All seven disbursements were selected for testing. The test found that two of the disbursements were not paid withing three working days of the receipt of the LCDBG funds. Recommendation Adequate policies and procedures should be implemented to ensure compliance with the grant agreement regarding timely disbursement of funds. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures that will ensure the timely disbursement of LCDBG funds.

Corrective Action Plan

Recommendation: The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires payments for expenditures to be disbursed within three working days of the receipt of the LCDBG funds. The City did not disburse the funds in a timely manner. Adequate policies and procedures should be implemented to ensure compliance with the grant agreement regarding timely disbursement of funds. Corrective Action Plan: The City agrees with the finding and has established policies and procedures that will ensure the timely disbursement of LCDBG funds.

Categories

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.66M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.02M
66.458 Capitalization Grants for Clean Water State Revolving Funds $585,485
15.622 Sportfishing and Boating Safety Act $185,216
15.605 Sport Fish Restoration Program $173,153
15.663 Nfwf-Usfws Conservation Partnership $47,346
14.871 Section 8 Housing Choice Vouchers $18,940
16.738 Edward Byrne Memorial Justice Assistance Grant Program $12,580