Finding 602305 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 20291
Organization: City of Roseville (CA)

AI Summary

  • Core Issue: The City failed to provide necessary documentation for loan compliance, specifically regarding current insurance policies.
  • Impacted Requirements: Compliance with CDBG loan requirements for the fiscal year ended June 30, 2022, was not met.
  • Recommended Follow-Up: Management should actively monitor loans to ensure all documentation is current and compliance is maintained.

Finding Text

Finding 2022-001: Continuing Loan Compliance Noncompliance/Significant Deficiency Federal Award Information: Assistance Listing Number: 14.218 Program Title: CDBG ? Entitlement Grants Cluster Federal Award Year(s): FY 2021-22 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 City was unable to provide compliance supporting documentation for the CDBG ? Entitlement Grants Cluster loan compliance requirements for the year ended June 30, 2022, specifically verification of current required insurance policies. Condition: We noted that for the loans selected, the City did not have record of verifying current required insurance policies during the year, and did not have data on file for some of the items. Cause of the Condition: The City did not have the necessary documentation on file. Effect or Possible Effect: Adequate supporting documentation of outstanding loans are not being effectively maintained and archived by City personnel. Context: The City was unable to provide verification of current insurance policies and did not have all policies on file for the loans selected. Repeat Finding: This is a new finding for the fiscal year ended June 30, 2022. Recommendation: We recommend that management monitors each loan to ensure that the City maintains the most up-to-date information, and remains in compliance with all necessary requirements of the loan program. Management?s Response and Corrective Action: The City agrees with the finding and will review and monitor each loan to maintain the most up-to-date information and comply with all requirements of the loan program.

Categories

Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 25863 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $8.71M
14.239 Home Investment Partnerships Program $8.63M
14.871 Section 8 Housing Choice Vouchers $7.58M
21.023 Emergency Rental Assistance Program $3.60M
14.218 Community Development Block Grants/entitlement Grants $3.14M
20.507 Federal Transit_formula Grants $2.04M
66.458 Capitalization Grants for Clean Water State Revolving Funds $1.92M
21.027 Coronavirus State and Local Fiscal Recovery Funds $509,434
97.044 Assistance to Firefighters Grant $348,451
14.879 Mainstream Vouchers $280,900
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $194,926
14.U01 Covid-19 Emergency Housing Voucher $169,917
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $103,460
97.067 Homeland Security Grant Program $89,376
93.575 Child Care and Development Block Grant $79,068
97.607 Homeland Security Grant Program $40,316
16.034 Coronavirus Emergency Supplemental Funding Program $26,730
16.922 Equitable Sharing Program $3