FAC Explorer

Finding 514042 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-12-12
Audit: 332240
Organization: City of Greenville (SC)
Auditor: Greene Finney Cauley LLP

AI Summary

  • Issue: The City’s PR-26 and PR-29 financial reports for fiscal year 2024 had discrepancies, failing to align with prior year data and other submitted information.
  • Requirements Impacted: Accurate submission of these forms is crucial for compliance with HUD spending requirements and to avoid excessive carryover funds.
  • Follow-Up: The City’s Office of Management and Budget should collaborate with the CDBG department to ensure future reports are accurate and complete.

Finding Text

CONDITION: We tested the annual PR-26 and quarterly PR-29 CDBG financial reporting forms at the City to ensure the City was correctly preparing and submitting these forms to the US Department of Housing and Urban Development (“HUD”). During our testing we noted numerous discrepancies where the City’s fiscal year 2024 forms did not tie to prior year information or to other information provided during our testing. CRITERIA, CONTEXT AND EFFECT: The City must submit the annual PR-26 and quarterly PR-29 forms to HUD. These forms are relied on to ensure the City meets certain spending requirements and that the City doesn’t retain too much in carryover funds. CAUSE: The City did not have proper internal controls in place to make sure these reports were being properly reviewed to ensure amounts reported were accurate and complete. RECOMMENDATION: We would encourage the City Office of Management and Budget to work with the CDBG department to ensure the PR-26 and PR-29 financial reporting forms are accurate and complete. RESPONSE: The City agrees with this finding and will adhere to the corrective action plan on page 195 in this report.

Corrective Action Plan

CONTACT PERSON: James Kennedy, Comptroller, jkennedy@greenvillesc.gov CORRECTIVE ACTION: The Office of Management and Budget has established regular meetings with Community Development departments to ensure collaboration and provide quick resolution of any reporting issues. Office of Management and Budget will increase oversight by instituting a mandatory review and approval process for each financial report. This process will ensure that all financial reports are reconciled to supporting documentation and prior submissions before being finalized. PROPOSED COMPLETION DATE: Prior to December 31, 2024.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 514043 2024-002
    Significant Deficiency
  • 514044 2024-002
    Significant Deficiency
  • 514045 2024-002
    Significant Deficiency
  • 1090484 2024-002
    Significant Deficiency
  • 1090485 2024-002
    Significant Deficiency
  • 1090486 2024-002
    Significant Deficiency
  • 1090487 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.241 Housing Opportunities for Persons with Aids $689,188
16.922 Equitable Sharing Program $592,147
15.916 Outdoor Recreation Acquisition, Development and Planning $500,000
14.218 Community Development Block Grants/entitlement Grants $403,359
20.219 Recreational Trails Program $100,000
21.016 Equitable Sharing $50,000
14.239 Home Investment Partnerships Program $31,962
97.067 Homeland Security Grant Program $27,054
16.710 Public Safety Partnership and Community Policing Grants $25,410
16.607 Bulletproof Vest Partnership Program $18,703
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1,921