Finding 485078 (2023-003)

-
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-08-26
Audit: 317854
Organization: City of Joliet (IL)

AI Summary

  • Core Issue: The City did not keep necessary records for a CDBG expense of $4,900.
  • Impacted Requirements: This violates the requirement to maintain adequate documentation as per 24 CFR 570.506.
  • Recommended Follow-Up: The City should establish a procedure to ensure all grant expenses have proper documentation moving forward.

Finding Text

Criteria or Specific Requirement: Recipients of the Community Development Block Grant (CDBG) must maintain adequate records and documentation in support of all costs, as set forth in 24 CFR 570.506. Condition: During the course of the audit, it was noted the City failed to retain supporting documentation for CDBG expenditures. Questioned Costs: $4,900. Context: Of the eleven expenses selected for testing, it was noted the City did not retain documentation for one expense totaling $4,900. Effect: Without supporting documentation, the expenditure cannot be sustained as an allowable cost. Cause: The City's review procedures over grant expenses were not operating effectively to ensure that documentation was retained for all grant expenses. Recommendation: We recommend the City take steps to ensure support is retained for all grant expenses. Management’s Response: The City will implement an internal procedure to ensure proper documentation is retained for all grant expenses.

Corrective Action Plan

Management will implement an internal procedure to ensure proper documentation is retained for all grant expenses.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.08M
66.468 Capitalization Grants for Drinking Water State Revolving Funds $1.28M
66.458 Capitalization Grants for Clean Water State Revolving Funds $762,913
20.205 Highway Planning and Construction $220,121
20.600 State and Community Highway Safety $206,541
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $100,241
97.074 Ileas Grant $43,239
14.218 Community Development Block Grants/entitlement Grants $40,500
14.239 Home Investment Partnerships Program $33,526
15.904 Historic Preservation Fund Grants-in-Aid $32,000
16.300 Law Enforcement Assistance_fbi Advanced Police Training $22,421
95.001 High Intensity Drug Trafficking Areas Program $22,088
16.302 Law Enforcement Assistance_fbi Field Police Training $17,330
93.667 Social Services Block Grant $11,905
16.738 Edward Byrne Memorial Justice Assistance Grant Program $785