FAC Explorer

Finding 59502 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-25
Audit: 55108
Organization: City of Pittsburgh (PA)
Auditor: Maher Duessel CPAS

AI Summary

  • Core Issue: The City did not sign ESG COVID-19 funding contracts within the required 240 days of the HUD agreement.
  • Impacted Requirements: This delay violates HUD and federal regulations regarding timely obligation of funds.
  • Recommended Follow-Up: The City should establish procedures to ensure all contracts are signed within the required timeframe to avoid future noncompliance.

Finding Text

Finding 2022-001: Special Tests and Provisions - Obligation Requirements Program Name: COVID-19 Emergency Solutions Grant Program and Emergency Shelter Grant Program (ESG), AL Number: 14.231 (Grant No. MW420103 and MC420103) Criteria of Specific Requirement: The City is to obligate ESG COVID-19 funds timely in accordance with HUD and federal requirements. Condition: The City?s ESG sub-recipient contracts related to ESG COVID-19 funding were not signed within 240 days of HUD?s grant agreement with the City as prescribed in the ESG single audit compliance supplement and 24 CFR 576.203(a)(1)&(2). Current year testing found non-COVID-19 funded contracts selected were signed within the 180 days of the City?s signed agreement with HUD. Questioned Costs: None Cause: Delays in coordination due to pandemic needs and restrictions resulted in contracts related to ESG COVID-19 funds not being obligated within 240 days of the signed HUD contract. Effect: Failure to execute subawards timely resulted in noncompliance with Federal statues, regulations, and the terms and conditions of the subaward. Identification as a Repeat Finding: This is not a repeat finding from the prior audit. Recommendation: The City should implement procedures to ensure all sub-recipient contracts are signed within the required number of days from the City?s signed agreement with HUD. Views of Responsible Officials and Planned Corrective Actions: Management agrees; see separate corrective action plan.

Corrective Action Plan

The City?s corrective action follows. Action Taken: The City has developed an internal process to ensure compliance with contracting deadlines. The Community Development leadership team now conducts monthly contract check-in meetings with Program Coordinators. During these meetings, contract execution timelines are discussed. If a subrecipient has not submitted contract documentation 90 days before the appropriate deadline, the Program Coordinator will contact the subrecipient to better understand why the contract documents were not submitted. The Program Coordinator will continue to contact the subrecipient, via email and telephone, each week until all materials are submitted and the agreement is executed. Additionally, all deadlines are clearly marked on a large calendar in a shared workspace as well as on individual electronic calendars. If you have any questions, I can be reached at 412-255-2640. Sincerely, Jake Pawlak Director, Office of Management & Budget

Categories

Subrecipient Monitoring Special Tests & Provisions HUD Housing Programs

Other Findings in this Audit

  • 59503 2022-001
    Material Weakness
  • 635944 2022-001
    Material Weakness
  • 635945 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $57.96M
14.218 Community Development Block Grants/entitlement Grants $7.44M
21.023 Covid-19 Emergency Rental Assistance Program $4.47M
20.205 Highway Planning and Construction $4.15M
14.231 Covid-19 Emergency Solutions Grant Program $3.01M
93.558 Temporary Assistance for Needy Families $2.00M
14.241 Housing Opportunities for Persons with Aids $1.28M
20.933 National Infrastructure Investments $926,806
14.218 Covid-19 Community Development Block Grants/entitlement Grants $857,718
97.047 Pre-Disaster Mitigation $854,715
14.231 Emergency Solutions Grant Program $844,297
97.042 Emergency Management Performance Grants $773,701
14.239 Home Investment Partnerships Program $713,867
97.044 Assistance to Firefighters Grant $473,902
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $426,894
10.559 Summer Food Service Program for Children $241,009
20.941 Strengthening Mobility and Revolutionizing Transportation (smart) Grants Program $232,332
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $231,506
14.401 Fair Housing Assistance Program_state and Local $110,206
10.558 Child and Adult Care Food Program $81,641
16.738 Edward Byrne Memorial Justice Assistance Grant Program $77,178
20.200 Highway Research and Development Program $69,831
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $63,625
89.003 National Historical Publications and Records Grants $55,101
20.600 State and Community Highway Safety $44,861
30.001 Employment Discrimination_title Vii of the Civil Rights Act of 1964 $36,710
20.616 National Priority Safety Programs $33,875
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $22,752
20.932 Surface Transportation _ Discretionary Grants for Capital Investment $14,273
14.241 Covid-19 Housing Opportunities for Persons with Aids $8,569
10.935 Urban Agriculture and Innovative Production $5,000
20.614 National Highway Traffic Safety Administration (nhtsa) Discretionary Safety Grants $4,970