Finding Text
Finding 2023-III-006 – Grant Agreement Compliance – CDBG Reporting
Type of Finding – Significant Deficiency
Criteria: As a recipient of CDBG funding passed through the Texas General Land Office (GLO), the City is required to submit an Audit Certification Form (ACF) to the Texas GLO for each fiscal year.
Condition Cause: The City submitted an ACF on December 15, 2023 and a revised ACF on May 15, 2024. Both certifications contained errors that were corrected with audit adjustments. In addition, the City is required to submit monthly activity reports to the GLO. The City was not able to provide documentation that all 12 reports were submitted as required. In addition, because of the audit adjustments, some of the monthly reports if submitted would have been incorrect.
Recommendation: We recommend that the City reviews their grant management policies and procedures. A reconciliation of grant expenses should be completed monthly. In addition, complete and accurate files should be maintained for each grant so that correct reporting can be submitted as required.
Response: City staff will review their grant management policies and procedures and will complete a monthly reconciliation of grant expenses. Complete and accurate files will be maintained for each grant so that correct reporting can be submitted as required.