FAC Explorer

Finding 50539 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-24
Audit: 51353
Organization: Iowa Finance Authority (IA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The board approved fund obligations 124 days after the grant agreement, exceeding the 60-day requirement.
  • Impacted Requirements: Compliance with the Emergency Solutions Grant Program's obligation timeline is critical for timely fund management.
  • Recommended Follow-Up: Implement a monitoring system to track grant agreement dates and ensure obligations meet the required timeframe.

Finding Text

2022-001 U.S. Department of Housing and Urban Development CFDA # 14.231, 2022 Award Year, Award Number: Not Provided Emergency Solutions Grant Program Special Tests and Provisions ? Obligations, Expenditure and Payment Requirements Significant Deficiency in Internal Control over Compliance and Non-Compliance Criteria: Emergency Solutions Grant Program (ESG) guidance requires that States are to obligate fund with 60 days from the date of the grant agreement from HUD. This excluded funding under the CARES Act (ESG-CV). Condition: As part of our testing for special tests and provisions compliance requirements, we noted that the board approval for the obligations was outside the 60-day requirement. The board approval was at 124 days. Cause: With additional funding received for ESG-CV, the grant competition for ESG was pushed back to be able to meet the demands of the ESG-CV. The push back caused the timing of the awards to be delayed for obligation. Effect: Awards were not obligated in a timely manner. Questioned Costs: None. Context/Sampling: Not applicable. Repeat Finding from Prior Year(s): No Recommendation: We recommend the authority ensure they monitor the date of the grant agreement from HUD to ensure the obligations are taking place in the required timeframe. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2022-001 Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Emergency Solutions Grant Program CFDA #14.231 Finding Summary: As part of the auditors testing for special tests and provisions compliance requirements, they noted that the board approval for the obligations was outside the 60 day requirement. The board approval was at 124 days. Responsible Individuals: Brian Sullivan, Chief Programs Officer Corrective Action Plan: After receiving additional Emergency Solutions Grant funding under the CARES act, our program team decided to obligate the ESG CARES Act funding to our partners first due to the immediacy of the need. In doing so, the regular ESG funding was sent after the 60-day requirement. Going forward, we will ensure all grant awards are obligated in accordance with the timeline set forth in the compliance requirements. Anticipated Completion Date: June 30, 2022

Categories

Special Tests & Provisions HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 50540 2022-002
    Significant Deficiency
  • 50541 2022-002
    Significant Deficiency
  • 50542 2022-002
    Significant Deficiency
  • 50543 2022-001
    Significant Deficiency
  • 626981 2022-001
    Significant Deficiency
  • 626982 2022-002
    Significant Deficiency
  • 626983 2022-002
    Significant Deficiency
  • 626984 2022-002
    Significant Deficiency
  • 626985 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $69.10M
14.231 Emergency Solutions Grant Program $9.74M
14.239 Home Investment Partnerships Program $5.11M
14.275 Housing Trust Fund $2.53M
21.023 Emergency Rental Assistance Program $2.47M
21.019 Coronavirus Relief Fund $1.81M
14.241 Housing Opportunities for Persons with Aids $702,364
21.026 Homeowner Assistance Fund $527,139
21.027 Coronavirus State and Local Fiscal Recovery Funds $365,000