Finding Text
Criteria
The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires that funds from LCDBG contracts be deposited into separate non-interest bearing accounts.
Condition
The City deposited grant funds for the current LCDBG contract into a clearance account.
Cause
The City was not aware that the clearance account was not allowed to be used for LCDBG funds.
Effect
The City did not comply with the grant agreement regarding the use of a separate bank account.
Recommendation
The City should implement policies and procedures to ensure that separate accounts are utilized for LCDBG funds.
Views of Responsible Officials and Planned Corrective Action
The City agrees with the finding and has established policies and procedures to ensure that separate accounts will be utilized.