Finding 606556 (2022-003)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 34563
Organization: City of Rialto (CA)

AI Summary

  • Core Issue: The City submitted the required grant report late, missing the HUD deadline by several days.
  • Impacted Requirements: The HUD mandates quarterly financial reports be submitted within 30 days after each quarter ends.
  • Recommended Follow-Up: Establish a clear process for timely report submissions and designate internal staff to handle this responsibility.

Finding Text

Finding 2022-003: Timeliness of Grant Reporting Noncompliance/Significant Deficiency Federal Award Information: Assistance Listing Number: 14.218 Program Title: Community Development Grant Federal Award Number: B-20-MW-06-0571, B-21-MC-06-0571 Federal Award Year: 2020-2021 Name of Federal Agency: U.S. Department of Housing and Urban Development Criteria: The HUD requires grant recipients to submit the C04PR29 Cash on Hand Quarterly Report in the Integrated Disbursement and Information System (IDIS) to report the financial status of grant and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below. Quarter 1: January 30 Quarter 2: April 30 Quarter 3: July 30 Quarter 4: October 30 Condition: The City submitted the C04PR29 Cash on Hand Quarterly Report for the reporting period July 1, 2021 through June 30, 2022 on May 5, 2022 which was after the due date prescribed by HUD as noted above. Cause of the Condition: There was miscommunication with the City?s consultant on who was responsible for preparing and submitting the reports. Effect or Possible Effect: Unknown Questioned Costs: No questioned costs were identified ($0). Context: Noted the City also relies on their consultant to provide information to close out the CDBG program for the fiscal year. Delays in the consultant?s response resulted in the report for the quarter ending on June 30, 2022 to also be submitted past the filing deadline. Repeat Finding: This is a repeat finding. Refer to Finding 2021-006 in the Schedule of Findings and Questioned Costs for the fiscal year ended June 30, 2021. Recommendation: We recommend that the City implement a process to ensure that all federal reports are submitted in a timely manner. Management?s Response and Corrective Action: Management agrees with the recommendation and recognizes the importance of timely reporting. The City will designate internal staff which will be responsible for preparing the reports. Also, the City will request an extension in the case of potential delays of obtaining information from the City?s consultant.

Categories

HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 30111 2022-004
    Significant Deficiency
  • 30112 2022-003
    Significant Deficiency Repeat
  • 30113 2022-005
    Significant Deficiency
  • 30114 2022-003
    Significant Deficiency Repeat
  • 30115 2022-005
    Significant Deficiency
  • 606553 2022-004
    Significant Deficiency
  • 606554 2022-003
    Significant Deficiency Repeat
  • 606555 2022-005
    Significant Deficiency
  • 606557 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $29.37M
14.218 Community Development Block Grants/entitlement Grants $378,382
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $126,760
20.600 State and Community Highway Safety $97,497
16.710 Public Safety Partnership and Community Policing Grants $72,064
97.067 Homeland Security Grant Program $40,326
20.616 National Priority Safety Programs $21,400