Criteria
Per 24 CFR 570.902, the City is determined to be failing to carry out its Community Development Block Grant activities in a timely manner if sixty days prior to the end of the grantee's current program year, the amount of entitlement grant funds available to the City under grant agreements but undisbursed by the U.S. Treasury is more than 1.5 times the entitlement grant amount for its
program year, and if the City fails to demonstrate to the grantor’s satisfaction that the lack of timeliness has resulted from factors beyond the City's reasonable control.
Condition
We tested whether the City is in compliance with the timeliness standard pursuant to 24 CFR 570.902 by calculating the ratio of unspent funds in its line of credit to the amount of its current program year entitlement grant as of December 31, 2023. We noted the ratio is above the
maximum ratio of 1.5.
Corrective Action
The City will update its policies and procedures to ensure timeliness of expenditures is met, including regular monitoring of project status and budget to actual expenditure review.
Responsible Party
Carlos D. Minacapelli, M.D., B.A, Grant Administrator; Gbalee Weah, Program Accountant; Lynn Au, Acting Chief Financial Officer
Anticipated Completion Date
June 30, 2025