FAC Explorer

Finding 520811 (2023-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2025-01-30
Audit: 340608
Organization: County of Trinity (CA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The County failed to adequately monitor eight Community Development Block Grant loans, lacking necessary documentation for compliance.
  • Impacted Requirements: This oversight violates CDBG regulations regarding loan monitoring and could lead to noncompliance with program requirements.
  • Recommended Follow-Up: Implement a compliance checklist for loan monitoring to ensure timely documentation and adherence to CDBG provisions.

Finding Text

Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR Part 570.483 and 570.490. This requirement states the participating jurisdiction “has committed and expended CDBG funds, as required, and has met CDBG program requirements particularly as they relate to eligible activities, income targeting, affordability, and matching contribution requirement." Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for eight of the loans. Questioned costs: Known questioned costs of $667,118, the value of the eight loans. Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected twelve loans which is the entire population to test continuing compliance and found that eight of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to an empty employment position at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. The department was not aware of any other loans requiring foreclosure procedures. Repeat Finding: 2021-001 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Matching / Level of Effort / Earmarking Subrecipient Monitoring HUD Housing Programs

Other Findings in this Audit

  • 520798 2023-002
    Material Weakness
  • 520799 2023-002
    Material Weakness
  • 520800 2023-002
    Material Weakness
  • 520801 2023-002
    Material Weakness
  • 520802 2023-002
    Material Weakness
  • 520803 2023-003
    Material Weakness
  • 520804 2023-003
    Material Weakness
  • 520805 2023-003
    Material Weakness
  • 520806 2023-003
    Material Weakness
  • 520807 2023-003
    Material Weakness
  • 520808 2023-004
    Material Weakness Repeat
  • 520809 2023-004
    Material Weakness Repeat
  • 520810 2023-004
    Material Weakness Repeat
  • 520812 2023-004
    Material Weakness Repeat
  • 520813 2023-005
    Material Weakness Repeat
  • 1097240 2023-002
    Material Weakness
  • 1097241 2023-002
    Material Weakness
  • 1097242 2023-002
    Material Weakness
  • 1097243 2023-002
    Material Weakness
  • 1097244 2023-002
    Material Weakness
  • 1097245 2023-003
    Material Weakness
  • 1097246 2023-003
    Material Weakness
  • 1097247 2023-003
    Material Weakness
  • 1097248 2023-003
    Material Weakness
  • 1097249 2023-003
    Material Weakness
  • 1097250 2023-004
    Material Weakness Repeat
  • 1097251 2023-004
    Material Weakness Repeat
  • 1097252 2023-004
    Material Weakness Repeat
  • 1097253 2023-004
    Material Weakness Repeat
  • 1097254 2023-004
    Material Weakness Repeat
  • 1097255 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnership Program (outstanding Loan) $2.45M
21.027 Coronavirus State and Local Fiscal Recovery Funds Under the American Rescue Plan Act $2.32M
93.558 Temporary Assistance for Needy Families $2.31M
93.659 Adoption Assistance $1.75M
14.228 Community Development Block Grants/entitlement Grants (outstanding Loan) $890,336
93.658 Arra-Foster Care Title IV-E $836,756
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $649,372
21.032 Local Assistance and Tribal Consistency Fund $450,000
20.509 Formula Grants for Rural Areas Cares Act $437,786
93.959 Block Grants for Prevention and Treatment of Substance Abuse (sapt) $432,887
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $374,570
93.268 Immunization Cooperative Agreements $257,382
93.958 Substance Abuse and Mental Health Services Administration (samsha) $233,764
93.323 Covid-19 Public Health Emergency Response - Elc Expansion & Strategy Totals $219,170
93.658 Foster Care Title IV-E $216,052
16.575 Crime Victim Witness Program $171,648
93.889 Hospital Preparedness Program (hpp) $153,606
93.563 Child Support Enforcement $149,374
20.509 Formula Grants for Rural Areas $130,747
10.923 Ewp Project 53220 $112,874
93.391 Cdc/public Health Emergency Preparedness - California Equitable Recovery Initiative $106,652
93.069 Public Health Emergency Preparedness Program (phep) $96,627
16.585 Adult Drug Treatment Court $93,067
15.532 Central Valley Improvement Act Title Xxxiv $72,664
16.922 Domestic Cannabis Eradication Supression Program (cep) $52,225
93.977 Cdc/public Health Emergency Preparedness - Dis Wfd $51,905
93.136 California Strengthening Public Health Initiative (tosc) $50,207
93.994 Maternal and Child Health Services Block Grant to the States $46,857
21.019 Covid-19 Community Development Block Grant Cv $40,776
97.042 Emergency Management Performance $40,198
93.667 Social Services Block Grant $39,200
97.036 Homeland Security Grant Program $32,563
93.354 Covid-19 Public Health Emergency Response - Wfd $31,962
21.019 Covid-19 Coronavirus Relief Fund (crrsaa) - Sabg Supplemental $31,554
20.616 Child Passenger Safety Program $31,303
93.959 Covid-19 Sabg Supplemental - Arpa $30,517
20.205 Highway Planning and Construction $29,207
93.778 Medical Assistance Programs $27,518
20.205 Emergency Relief Program $26,706
20.205 Hazzard Elimination Safety Program $24,531
93.590 Community Based Child Abuse Prevention Grants $22,779
93.674 Chafee Foster Care Independence Program $19,735
14.228 Community Development Block Grant $19,452
93.090 Guardianship Assistance $18,816
84.027 Special Education Grants (idea) $13,561
93.556 Promoting Safe and Stable Families $12,158
20.106 Corona Virus Aid, Relief and Economic Security Act $11,939
93.569 Community Services Block Grant - Food Bank Services $11,374
93.778 Medical Assistance Programs - Chdp $10,931
93.645 Stephanie Tubbs Jones Child Welfare Services Program $10,877
10.704 Usda Forest Service CO-Op Le Patrol Shasta Trinity Nf $9,025
10.704 Usda Forest Service CO-Op Le Patrol Six Rivers Nf $7,216
93.778 Medical Assistance Programs - Foster Care $6,793
93.967 California Strengthening Public Health Initiative (casphi) $4,270
93.767 Children's Health Insurance Program $4,044
97.067 Homeland Security Grant Program $3,662
20.106 Airport Improvement Program Faa $861
10.704 Usda Forest Service CO-Operative Le Controlled Substance Six Rivers Nf $773
93.778 Medical Assistance Programs - Foster Care Pmm&o $771
10.704 Usda Forest Service CO-Op Le Controlled Substance Shasta-Trinity $640
10.572 Wic - Farmer's Market Nutrition Program $190