FAC Explorer

Finding 60651 (2022-002)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-03-21
Audit: 56357
Organization: Fort Bend County, Texas (TX)
Auditor: Whitley Penn LLP

AI Summary

  • Core Issue: The County did not place guaranteed loan funds in a separate, identifiable account as required.
  • Impacted Requirements: This violates the cash management criteria set by HUD for the Community Development Block Grant.
  • Recommended Follow-Up: Open a separate federally insured account and transfer the loan funds to ensure compliance.

Finding Text

Type of Finding: Compliance and Internal Control Over Compliance Finding: #2022-002 Guaranteed Loan Funds Account (C. Cash Management) Program Information: ALN 14.248 Community Development Block Grant, Section 108 Loan Guarantee Criteria: Per Part II (1)(a) of the Contract for Loan Guarantee Assistance Under Section 108 executed by the County and the U.S. Department of Housing and Urban Development (HUD), the County should place the guaranteed loan funds in a separate, identifiable account with a financial institution whose deposits or accounts are Federally insured. Condition: The County placed the guaranteed loan funds in the County?s general fund account. Cause: Oversight on the part of County personnel of this requirement. Effect: Noncompliance with cash management requirement. Questioned Costs: None Repeat Finding: No Recommendation: We recommend that the County open a separate account with a financial institution whose deposits or accounts are Federally insured and transfer the guaranteed loan funds into the new account. View of Responsible Official: Agree with the finding and see Corrective Action Plan

Corrective Action Plan

Finding #2022-002 - Community Development Block Grant, Section 108 Loan Guarantee; C. Cash Management Corrective Action Plan: The proceeds of the HUD Section 108 Loan were deposited into the County?s general fund upon settlement as this was the source of the advance funding for the designated project. While this account is interest bearing, it was not a separate bank account. The County will move all remaining proceeds of the Loan into a separate interest-bearing account as well as interest earned on these proceeds while in the general fund bank account. Anticipated Completion Date: April 1, 2023 Auditee Contact Person: Fiscal Compliance Officer ? Christopher Breaux

Categories

Internal Control / Segregation of Duties Cash Management HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 60650 2022-001
    Significant Deficiency
  • 637092 2022-001
    Significant Deficiency
  • 637093 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $68.69M
21.023 Emergency Rental Assistance Program $6.42M
14.248 Community Development Block Grants_section 108 Loan Guarantees $3.38M
20.507 Federal Transit_formula Grants $2.59M
93.268 Immunization Cooperative Agreements $1.71M
10.923 Emergency Watershed Protection Program $1.15M
14.231 Emergency Solutions Grant Program $867,568
93.778 Medical Assistance Program $637,493
20.509 Formula Grants for Rural Areas and Tribal Transit Program $623,447
97.034 Disaster Unemployment Assistance $493,182
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $421,247
16.606 State Criminal Alien Assistance Program $368,646
14.218 Community Development Block Grants/entitlement Grants $331,181
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $314,516
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $286,040
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $226,266
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $180,731
10.553 School Breakfast Program $144,316
16.543 Missing Children's Assistance $93,122
16.034 Coronavirus Emergency Supplemental Funding Program $86,525
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $69,893
16.588 Violence Against Women Formula Grants $67,660
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $59,421
16.575 Crime Victim Assistance $52,887
10.555 National School Lunch Program $51,001
90.404 2018 Hava Election Security Grants $50,492
20.500 Federal Transit_capital Investment Grants $46,273
14.239 Home Investment Partnerships Program $45,605
20.616 National Priority Safety Programs $43,593
16.738 Edward Byrne Memorial Justice Assistance Grant Program $39,777
97.039 Hazard Mitigation Grant $36,045
95.001 High Intensity Drug Trafficking Areas Program $32,100
93.940 Hiv Prevention Activities_health Department Based $31,549
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $27,091
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $21,257
93.069 Public Health Emergency Preparedness $18,599
93.658 Foster Care_title IV-E $17,137
16.922 Equitable Sharing Program $14,000
93.991 Preventive Health and Health Services Block Grant $12,882
16.607 Bulletproof Vest Partnership Program $12,372
16.320 Services for Trafficking Victims $9,206
97.067 Homeland Security Grant Program $8,946
10.565 Commodity Supplemental Food Program $8,000
45.310 Grants to States $5,821
20.600 State and Community Highway Safety $1,411