FAC Explorer

Finding 573382 (2024-004)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-08-12
Audit: 364158
Organization: County of Sutter (CA)
Auditor: Lsl CPAS

AI Summary

  • Core Issue: The County failed to provide necessary documentation for 3 out of 8 sampled loans, specifically proof of insurance and address.
  • Impacted Requirements: This noncompliance affects the County's ability to meet continuing loan compliance requirements under the CDBG grant program.
  • Recommended Follow-Up: Management should ensure annual monitoring of loans and confirm insurance and address details to maintain compliance.

Finding Text

Reference Number 2024-004 Continuing Loan Compliance Evaluation of Finding Significant Deficiency/Noncompliance Federal Award Information Assistance Listing Number: 14.228 Program Title: Community Development Block Grant (CDBG) 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 County is required to meet continuing loan compliance requirements for the loans disbursed under the CDBG grant program. These continuing loan compliance requirements include maintaining loan documentation and obtaining confirmation of insurance and address associated with the loans and their recipients. Condition We noted that of the 8 loan balances we sampled over the course of our audit, the County was unable to provide supporting documentation relating to proof of insurance and/or address for 3 of the selected loans. Cause of the Condition Per our inquiries with the County, due to the significant age of the selected loans, County personnel were unable to obtain the supporting documentation as a significant number of the selected loans had inception dates of ten years or more. Effect or Possible Effect Adequate supporting documentation of outstanding loans is not being effectively maintained and archived by County personnel. Additionally, the County was unable to provide proof of confirmation attempts to verify insurance and address associated with the loans and their recipients to meet compliance requirements. Questioned Costs None. Context Without maintaining current information surrounding ongoing loans the County is unable to best monitor grant recipients and evaluate the accuracy and reasonableness of the outstanding loan balances each year. Repeat Finding This is a repeat finding for the year ended June 30, 2024. See prior year finding 2023-001. Recommendation We recommend that management monitors each loan to ensure that the County maintains the most up-to-date information. Additionally, we recommend attempts are made annually to confirm insurance and address associated with the loans and their recipients to meet compliance requirements.

Corrective Action Plan

Name of Contact Person Nathan Black, Auditor-Controller Management's Response and Corrective Action The County agrees with the finding. Development Services sent certified letters to loan recipients and retained certified or returned mail. In some cases, the department sent up to 4 letters and physically verified the houses are still occupied. Code Enforcement staff also hand delivered letters to some of the non-responsive loan recipients. Moreover, the Department has secured the services of an outside consultant, Adams Ashby Group, to review and assist in efforts to comply with the loan requirements and provide their outside opinion on best practice in handling loans. Lastly, the Department is working with County Administrator's Office, Treasurer-Tax Collector's Office, and County Counsel on proper and legal way to handle sold properties, delinquent taxes, or simply not responding to the County's correspondence and requests. Proposed Completion Date Ongoing process.

Categories

Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 573383 2024-003
    Material Weakness
  • 573384 2024-003
    Material Weakness
  • 573385 2024-003
    Material Weakness
  • 573386 2024-003
    Material Weakness
  • 573387 2024-003
    Material Weakness
  • 573388 2024-003
    Material Weakness
  • 573389 2024-003
    Material Weakness
  • 1149824 2024-004
    Significant Deficiency Repeat
  • 1149825 2024-003
    Material Weakness
  • 1149826 2024-003
    Material Weakness
  • 1149827 2024-003
    Material Weakness
  • 1149828 2024-003
    Material Weakness
  • 1149829 2024-003
    Material Weakness
  • 1149830 2024-003
    Material Weakness
  • 1149831 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.658 Foster Care Title IV-E $10.82M
93.558 Temporary Assistance for Needy Families $9.45M
93.659 Adoption Assistance $3.84M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $2.24M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.25M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.18M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $848,739
93.667 Social Services Block Grant $838,591
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $799,942
16.575 Crime Victim Assistance $679,209
20.205 Highway Planning and Construction $632,387
93.958 Block Grants for Community Mental Health Services $630,919
21.027 Coronavirus State and Local Fiscal Recovery Funds $554,365
93.778 Medical Assistance Program $485,964
93.268 Immunization Cooperative Agreements $448,048
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $293,070
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $238,420
84.002A Adult Education - Basic Grants to States $226,317
93.889 National Bioterrorism Hospital Preparedness Program $196,812
97.067 Homeland Security Grant Program $196,587
16.606 State Criminal Alien Assistance Program $179,487
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $167,300
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $155,415
97.044 Assistance to Firefighters Grant $154,378
97.042 Emergency Management Performance Grants $151,082
93.110 Maternal and Child Health Federal Consolidated Programs $150,364
45.310 Grants to States $109,410
10.551 Supplemental Nutrition Assistance Program $108,296
93.779 Centers for Medicare and Medicaid Services (cms) Research, Demonstrations and Evaluations $101,646
93.150 Projects for Assistance in Transition From Homelessness (path) $83,283
10.664 Cooperative Forestry Assistance $79,975
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $69,390
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $54,059
93.645 Stephanie Tubbs Jones Child Welfare Services Program $48,597
20.600 State and Community Highway Safety $29,980
93.090 Guardianship Assistance $28,873
14.239 Home Investment Partnerships Program $21,330
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $18,846
93.556 Marylee Allen Promoting Safe and Stable Families Program $17,597
93.197 Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $15,491
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $12,724
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $10,000
16.000 Law Enforcement Assistance Narcotics and Dangerous Drugs Laboratory Analysis $1,861
16.607 Bulletproof Vest Partnership Program $1,598