FAC Explorer

Finding 59577 (2022-001)

Material Weakness Repeat Finding
Requirement
J
Questioned Costs
-
Year
2022
Accepted
2023-01-02
Audit: 54437
Organization: City of Kansas City, Missouri (MO)
Auditor: Allen Gibbs & Houlik L C

AI Summary

  • Core Issue: The City is not tracking or reconciling program income from CDBG funds, leading to potential mismanagement of funds.
  • Impacted Requirements: Compliance with OMB Uniform Guidance and CDBG program rules is at risk due to inadequate monitoring and accounting practices.
  • Recommended Follow-Up: The City should create a process to identify, record, and ensure proper use of all program income to comply with regulations.

Finding Text

Program: Community Development Block Grants/Entitlement Grants Federal Agency: Department of Housing and Urban Development (HUD) AL #: 14.218 Federal Award Identification Number and Year: Various ? See SEFA Pass-through Entity: N/A Type of Compliance Finding: J ? Program Income Criteria - Per OMB Uniform Guidance, 24 CFR sections 570.500 and 570.504, ?The grantee must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.? Condition/Context - The City hired a third party to service single family home loans made with federal funds from this grant. The City did not maintain a listing or monitor the loans originated under this grant. Accordingly, the City cannot reconcile the loan servicer?s accounting reports to City records. Although the City indicated that they have other sources of program income, the City does not have a system which identifies other sources of program income. Cause - The City has not established a process to ensure that all income received by the third-party loan servicer, less their administrative fee, is remitted to the City. Because the City does not maintain a listing of all loans made, the City cannot reconcile the accounting reports provided by the loan servicer to City records. The City has also not established a system to ascertain that all other anticipated sources of program income is remitted to the City. Effect - The City may not have recorded all program income received, which would result in the City drawing down entitlement funds rather than using program income. Questioned Costs - Unknown Is the finding a repeat finding - Yes ? Finding 2021-001 and 2020-002 Recommendations - We recommend that the City establish a process that: ? Identifies all sources of program income ? All program income is recorded in the accounting records ? All program income was used in accordance with program requirements Views of Responsible Officials/ Planned Corrective Actions - Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.

Categories

Program Income Subrecipient Monitoring HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 59573 2022-001
    Material Weakness Repeat
  • 59574 2022-001
    Material Weakness Repeat
  • 59575 2022-001
    Material Weakness Repeat
  • 59576 2022-001
    Material Weakness Repeat
  • 59578 2022-001
    Material Weakness Repeat
  • 59579 2022-001
    Material Weakness Repeat
  • 59580 2022-001
    Material Weakness Repeat
  • 59581 2022-002
    Significant Deficiency Repeat
  • 59582 2022-002
    Significant Deficiency Repeat
  • 59583 2022-002
    Significant Deficiency Repeat
  • 59584 2022-002
    Significant Deficiency Repeat
  • 59585 2022-002
    Significant Deficiency Repeat
  • 59586 2022-002
    Significant Deficiency Repeat
  • 59587 2022-002
    Significant Deficiency Repeat
  • 59588 2022-002
    Significant Deficiency Repeat
  • 59589 2022-002
    Significant Deficiency Repeat
  • 59590 2022-002
    Significant Deficiency Repeat
  • 59591 2022-002
    Significant Deficiency Repeat
  • 59592 2022-002
    Significant Deficiency Repeat
  • 59593 2022-002
    Significant Deficiency Repeat
  • 59594 2022-002
    Significant Deficiency Repeat
  • 59595 2022-002
    Significant Deficiency Repeat
  • 59596 2022-002
    Significant Deficiency Repeat
  • 59597 2022-002
    Significant Deficiency Repeat
  • 636015 2022-001
    Material Weakness Repeat
  • 636016 2022-001
    Material Weakness Repeat
  • 636017 2022-001
    Material Weakness Repeat
  • 636018 2022-001
    Material Weakness Repeat
  • 636019 2022-001
    Material Weakness Repeat
  • 636020 2022-001
    Material Weakness Repeat
  • 636021 2022-001
    Material Weakness Repeat
  • 636022 2022-001
    Material Weakness Repeat
  • 636023 2022-002
    Significant Deficiency Repeat
  • 636024 2022-002
    Significant Deficiency Repeat
  • 636025 2022-002
    Significant Deficiency Repeat
  • 636026 2022-002
    Significant Deficiency Repeat
  • 636027 2022-002
    Significant Deficiency Repeat
  • 636028 2022-002
    Significant Deficiency Repeat
  • 636029 2022-002
    Significant Deficiency Repeat
  • 636030 2022-002
    Significant Deficiency Repeat
  • 636031 2022-002
    Significant Deficiency Repeat
  • 636032 2022-002
    Significant Deficiency Repeat
  • 636033 2022-002
    Significant Deficiency Repeat
  • 636034 2022-002
    Significant Deficiency Repeat
  • 636035 2022-002
    Significant Deficiency Repeat
  • 636036 2022-002
    Significant Deficiency Repeat
  • 636037 2022-002
    Significant Deficiency Repeat
  • 636038 2022-002
    Significant Deficiency Repeat
  • 636039 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $79.63M
20.500 Federal Transit_capital Investment Grants $17.15M
97.117 Tsa Electronic Baggage Screening Program $12.94M
21.023 Emergency Rental Assistance Program $12.21M
14.218 Community Development Block Grants/entitlement Grants $4.71M
14.239 Home Investment Partnerships Program $1.17M
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $1.15M
93.917 Hiv Care Formula Grants $1.08M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $825,645
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $762,910
16.034 Coronavirus Emergency Supplemental Funding Program $547,237
20.205 Highway Planning and Construction $526,606
20.507 Federal Transit_formula Grants $524,657
14.889 Choice Neighborhoods Implementation Grants $490,793
93.767 Children's Health Insurance Program $480,104
93.137 Community Programs to Improve Minority Health Grant Program $477,472
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $441,177
93.268 Immunization Cooperative Agreements $407,413
14.231 Emergency Solutions Grant Program $390,166
97.044 Assistance to Firefighters Grant $373,695
14.238 Shelter Plus Care $287,101
81.128 Energy Efficiency and Conservation Block Grant Program (eecbg) $253,880
14.256 Neighborhood Stabilization Program $226,445
93.069 Public Health Emergency Preparedness $221,595
81.086 Conservation Research and Development $212,783
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $212,180
14.267 Continuum of Care Program $197,105
97.072 National Explosives Detection Canine Team Program $177,929
93.940 Hiv Prevention Activities_health Department Based $156,311
16.582 Crime Victim Assistance/discretionary Grants $114,846
97.042 Emergency Management Performance Grants $79,882
14.241 Housing Opportunities for Persons with Aids $75,745
16.588 Violence Against Women Formula Grants $73,189
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $67,528
16.812 Second Chance Act Reentry Initiative $66,708
93.310 Trans-Nih Research Support $62,116
16.738 Edward Byrne Memorial Justice Assistance Grant Program $55,515
16.827 Justice Reinvestment Initiative $55,458
20.106 Airport Improvement Program $52,546
97.024 Emergency Food and Shelter National Board Program $50,573
93.994 Maternal and Child Health Services Block Grant to the States $47,383
93.914 Hiv Emergency Relief Project Grants $31,933
93.575 Child Care and Development Block Grant $31,340
93.834 Capacity Building Assistance (cba) for High-Impact Hiv Prevention $25,000
14.401 Fair Housing Assistance Program_state and Local $20,962
29.001 Clearinghouse Services, Civil Rights Discrimination Complaints $20,367
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $17,275
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $7,320
10.559 Summer Food Service Program for Children $5,935
97.075 Rail and Transit Security Grant Program $5,360
14.902 Lead Technical Studies Grants $5,346
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $3,733
93.103 Food and Drug Administration_research $3,000
21.019 Coronavirus Relief Fund $2,480
81.042 Weatherization Assistance for Low-Income Persons $99