Finding Text
Finding No.: 2023-001
Federal Agency: U.S. Department of Housing and Urban Development (HUD)
AL Program: 14.225 CDBG - Entitlement Grants Cluster
Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001
Area: Reporting
Questioned Costs: $0
Criteria:
In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Condition:
1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2022, Grant No. B22ST660001, do not agree with underlying accounting records and result in obligations for planning and administration (PA) activities exceeding the 20-percent ceiling. See Schedule of Findings and Question Costs for chart/table.
COVID-19
2. Certain amounts reported in PR26 – CDBG-CV Financial Summary Report, Grant No. B20SW660001 do not agree with underlying accounting records, as follows:
See Schedule of Findings and Question Costs for chart/table.
3. Certain amounts reported in C04PR26 – CDBG Activity Summary by Selected Grant for Program Years do not agree with underlying accounting records, as follows:
See Schedule of Findings and Question Costs for chart/table.
4. Subawards are not reported in FSRS, as follows: See Schedule of Findings and Question Costs for chart/table.
Cause:
GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements.
Effect:
GHURA is in noncompliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments.
Identification as a Repeat Finding: 2022-001
Recommendation:
Responsible personnel should strengthen monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS.
Views of Responsible Officials:
Condition 1, 2, and 3:
The reporting and recording requirements in the Integrated Disbursement and Information System (IDIS), use and reconciliation of the CDBG Program is complex in nature. The Authority will review its accounting processes to accurately record and provide complete reports as required by the U.S. Department of Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance and the IDIS.
Condition 4:
The data for the reporting and recording requirements for subawards in the FSRS are currently entered in FY 2024. The Authority will review its accounting processes to continue to accurately record and provide complete reports as required by the U.S. Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance and the IDIS to enhance the reporting requirements.