Finding Text
Finding 2023-006 Reporting – Internal Control and Compliance Over Reporting
Identification of the Federal Program:
Assistance Listing Number: 14.218
Assistance Listing Title: Community Development Block Grant/Entitlement Grants
Federal Agency: U.S. Department of Housing and Urban Development
Pass-Through Entity: N/A
Federal Award Identification Number: B-22-MC-06-0555; B-20-MW-06-0555
Assistance Listing Number: 21.207
Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds
Federal Agency: U.S. Department of the Treasury
Pass-Through Entity: N/A
Federal Award Identification Number: N/A
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation):
PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below:
Quarterly Project and Expenditure Reports – All metropolitan cities and counties with a population that exceeds 250,000 residents that receive Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) are required to submit Project and Expenditure Reports. For these recipients, the initial quarterly Project and Expenditure Report covered three calendar quarters from March 3, 2021 to December 31, 2021 was required to be submitted to U.S. Department of the Treasury by January 31, 2022. The subsequent quarterly reports will cover one calendar quarter and must be submitted by the last day of the month following the end of the period covered. The due dates of each quarterly reports is noted below:
Condition:
During the audit, we noticed that two out of four quarters of PR29 for CDBG and CDBG CV were not filed within the deadline, as shown below:
During the audit, we noticed that one out of four quarters of Project and Expenditure Reports for SLFRF was not filed within the deadline, as shown below:
Cause:
Monitoring controls are inadequate to ensure the timely submission of the required reports.
Effect or Potential Effect:
The City was not in compliance with the programs’ reporting requirements.
Questioned Costs:
None noted.
Context:
See condition above for the context of the finding.
Identification as a Repeat Finding, If Applicable:
2022-006.
Recommendation:
We recommend the City develop policy and procedures to ensure that the reports are prepared and submitted timely.
Views of Responsible Officials:
Management endeavors to submit all required reports by required deadlines. While acknowledging that this does not always occur, the City has made vast improvements on timeliness of reports, especially PR29’s for CDBG and HOME. The year-end reports (June 30) due by July 30 can be difficult to submit timely if year-end close has not been completed. Regardless management is committed to ensuring all reports are filed within the 30 day timeframe.