Finding Text
Finding Number: 2023‐001
Repeat Finding: No
Program Name/Assistance Listing Title: CBDG‐Entitlement Grants Cluster
Assistance Listing Number: 14.218
Federal Agency: U.S. Department of Housing and Urban Development
Federal Award Numbers: B‐20‐MC‐04‐0503, B‐21‐MC‐04‐0503, B‐22‐MC‐04‐0503, and
B‐20‐MW‐04‐0503
Pass‐Through Agency: N/A
Questioned Costs: $0
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirement: Reporting
Criteria
Under 2 CFR §200.303, the City is required to establish and maintain effective internal controls over
Federal awards that provide reasonable assurance that the City is managing the Federal award in
compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
CDBG program regulations require the City to file financial reports throughout the year. First, the City
is required to file accurate PR26‐CDBG Financial Summary and the PR26‐CDBG‐CV Financial Summary
Reports within 90 days after fiscal year end. Second, the City is also required to file PR29 – CDBG Cash
on Hand and PR29 – CDBG‐CV Cash On Hand Reports by the end of the month subsequent to each
quarter end. 2 CFR Part 170 requires the City to submit subaward information through the FFATA
Subaward Reporting System (FSRS) in compliance with the Federal Funding Accountability and
Transparency Act by the end of the month subsequent to the award.
Condition
Reporting obligations were not completed timely or accurately.
Cause
The Community Assistance Office experienced turnover and vacancies in key positions responsible
for reporting during fiscal year 2020‐21. 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 fully in compliance with reporting requirements.
Context
We noted the following items when reviewing reports submitted for the CDBG program.
The PR26 reports for the 2020 and 2021 program years contained inaccuracies in the
beginning unexpended CDBG funds, program income, or expenditure activity for each year.
The City corrected these inaccuracies to properly present information on the PR26 report for
program year 2023.
The City did not submit PR29 reports for both the CDBG and CDBG‐CV programs quarterly.
The last PR29 report submitted was for the quarter ended December 31, 2021 before the City
completed all delinquent reporting in October 2023.
The City was submitting the FFATA reporting annually rather than by the end of the month
subsequent to an award.
Recommendation
The City should dedicate time and resources to allow individuals to resolve discrepancies in reporting
within the Community Assistance Office.
Views Of Responsible Officials
See Corrective Action Plan.