Finding Text
Federal Award Information:
Assistance Listing Number: 14.228
Program Title: Community Development Block Grants/Entitlement Grants
Federal Award Year(s): FY 2023-24
Name of Federal Agency: U.S. Department of Housing and Urban Development
Passed through: State of California Department of Housing and Community Development
Criteria or Specific Requirement:
The City was unable to provide compliance supporting documentation for the Community Development Block Grant/Entitlement Grant loan proof of insurance and/or residency compliance requirements for the year ended
June 30, 2024.
Condition:
We noted 5 out of 13 CDBG loans inspected, the City did not perform their review of residency until February when the items were requested by the auditors.
Cause of the Condition:
Per our inquiries with City personnel, noted verification occurred at the beginning of the year in January 2025 which did not allow sufficient time for all documents to be gathered and confirmed.
Effect or Possible Effect:
Adequate supporting documentation of outstanding loans are not being effectively maintained and archived by City personnel.
Context:
We selected a sample of 13 outstanding loan balances, of which 5 selected loans, and residency was not confirmed until after the information was requested by the auditors.