Finding Text
Finding Number: 2023‐002
Repeat Finding: No
Program Name/Assistance Listing Title: CDBG‐Entitlement Grants Cluster
Assistance Listing Number: 14.218
Federal Agency: U.S. Department of Housing and Urban Development
Federal Award Number: B‐20‐MC‐04‐0503
Pass‐Through Agency: N/A
Questioned Costs: $255,750
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirement: Special Tests and Provisions
Criteria
24 CFR §58.22 requires Housing and Urban Development (HUD) to approve a request for release of
funds (RROF) before the City can obligate or expend CDBG grant funds.
Condition
The City could not provide a HUD‐approved RROF for one project funded with Program Year 2020
monies.
Cause
The Community Assistance Office experienced turnover and vacancies in key positions responsible
for reporting during fiscal year 2021. Training was needed for program employees to fully understand
reporting responsibilities for the City. In some cases information was not retained and required
recreation.
Effect
The City was not in compliance with 24 CFR §58.22.
Context
HUD approval of the RROF for the Piute Splashpad project in fiscal year 2019‐20 was not retained.
The City was, therefore, required to remit to HUD the $255,750 expended on the project. The funds
were returned in June and July 2023. The sample was not intended to be, and was not, a statistically
valid sample.
Recommendation
The City should dedicate time and resources to the Community Assistance Office to ensure that key
compliance documents are maintained for the program.
Views of Responsible Officials
See Corrective Action Plan.