Finding Text
IC 2024-001 ─ Reporting
U.S. Department of Housing and Urban Development
CDBG - Entitlement/Special Purpose Grants Cluster
ALN: 14.218
Criteria: The City is required to file Form SF-425, Federal Financial Reports on a quarterly basis with the grantor. Reports are required to be filed with the grantor within 30 days of the end of each quarter. Such reports should be reviewed by a supervisor for completeness and accuracy prior to filing.
Condition: We noted that Form SF-425, Federal Financial Reports were not filed timely with the grantor, as required by program guidelines. Additionally, there was no evidence of supervisory review of the reports that were filed with the grantor.
Questioned Costs: None.
Context: This condition is systemic in nature. The two Form SF-425, Federal Financial Reports selected for testing were not filed with the grantor in a timely manner and there was no evidence of supervisory review of the reports.
Cause: The City experienced employee turnover and this resulted in the reports not being reviewed by a supervisor and filed timely with the grantor.
Effect or potential effect: Failure to comply with program reporting requirements may result in a disallowance of program expenditures and/or loss of future grant funding.
Recommendation: We recommend that the City establish internal control policies and procedures to allow for the timely supervisory review and filing of Form SF-425, Federal Financial Reports with the grantor on an ongoing basis.
Views of Responsible Officials: The Community Development Division took corrective actions regarding submission of HUDs Integrated Disbursement and Information System (IDIS) Cash on Hand Quarterly Reports (formerly known as Federal Financial Report /Standard Form SF-425). Moving forward, the Cash on Hand Quarterly Reports will be submitted within IDIS every quarter and no later than 30 days after the last day of each reporting quarter and will be reviewed by a supervisor prior to submission. As the grantee, we understand HUDs Cash On Hand Quarterly Report is required every quarter, regardless of whether expenses were incurred or not, once the project(s) has begun.