Finding Text
U.S. Department of Housing and Urban Development
FFAL # 14.231, 2020/2021/2022/2023 Award Year, Award Number: Not Provided
COVID-19 Emergency Solutions Grant Program (ESG – CV)
Emergency Solutions Grant Program (ESG)
Special Tests and Provisions - Obligation, Expenditure and Payment Requirements
Significant Deficiency in Internal Controls and Compliance
Criteria: Section 24 CFR Section 576.203 requires that the grant recipient must pay each
subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete
payment request.
Condition: As part of our testing for the special tests and provisions compliance requirements,
we selected a sample of 49 payments to subrecipients. Of the 49, eleven payments were made
outside of the 30-day requirement.
Cause: During the processing of the requests for payments, the Authority had difficulties with
information provided which caused additional timing in processing payments.
Effect: Subrecipients were not paid reimbursements in a timely manner as required.
Questioned Costs: None.
Context/Sampling: We tested 49 of the 241 payments.
Repeat Finding from Prior Year(s): No
Recommendation: The Authority should implement a control structure to track when payment
requests are received and notify staff when they are close to the 30-day requirement. Also, we
recommend that information for the last date of payment, including correspondence on issues
that arise with the information provided, be documented and retained.
Views of Responsible Officials: Management agrees with the finding.