Finding 609434 (2022-026)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-05-04

AI Summary

  • Core Issue: The CDBG Financial Summary Report contained an overstatement of $48,812, leading to noncompliance with financial reporting requirements.
  • Impacted Requirements: Compliance with financial and performance reporting as per CDBG guidelines and 2 CFR 200.327.
  • Recommended Follow-Up: Review and improve reporting procedures to ensure accuracy before submission to HUD; corrective actions are expected to be completed within three months.

Finding Text

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2022-026 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 See Compliance Finding 2022-021. 2022-021 Compliance with Financial and Performance Reporting Fiscal year finding initially occurred: 2021 CDBG ? Entitlement Grants Cluster (14.218) B-16-MC-22-0003, B-17-MC-22-0003, B-18-MC-22-0003, B-19-MC-22-0003, B-20-MC-22-0003, B-21-MC-22-0003, B-22-MC-22-0003 Criteria Pursuant to Part 4 CDBG ? Entitlement Grants Cluster and financial and performance reporting requirements in the cooperative agreement provisions, and 2 CFR 200.327. Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077) ? Grantees may include reports generated by IDIS as part of their annual performance and evaluation report that must be submitted for the CDBG Entitlement program 90 days after the end of a grantee?s program year. Auditor?s are only expected to test information extracted from IDIS in the following system-generated reports: (1) C04PR03 ? Activity Summary Report, (2) C04PR26 ? CDBG Financial Summary Report, (3) C04PR26 ? CDBG-CV Financial Summary Report, (4) C04PR26 ? CDBG Activity Summary by Selected Grant. Condition Instance of Non-Compliance ? While the CDBG Financial Summary Report (C04PR26) was submitted timely, the report included materially inaccurate information on line 30, Adjustment to Compute Total PS Obligations. The amount reported was overstated by $48,812. Cause The Government has not corrected the error in the reporting to the U.S. Department of Housing and Urban Development. Effect Noncompliance with financial reporting requirements. Recommendation We recommend the Government review its procedures over reporting to ensure that all required reporting information is reviewed and reconciled for accuracy to the Government?s financial records. Views of Responsible Officials and Planned Corrective Action The finding was a result of a clerical error. The Government is allowed to utilize up to 15% of its annual CDBG allocation for Public Services. The adjustment made was to correct the reported actual use from 2% to 5%. Corrective actions are being implemented to ensure data entered into the report is accurate prior to submission to HUD. This project is expected to be completed within three months and will be overseen by Community Development & Planning Director Mary Sliman.

Categories

Allowable Costs / Cost Principles HUD Housing Programs Reporting Special Tests & Provisions

Other Findings in this Audit

  • 32983 2022-021
    - Repeat
  • 32984 2022-026
    Material Weakness Repeat
  • 32985 2022-021
    - Repeat
  • 32986 2022-026
    Material Weakness Repeat
  • 32987 2022-021
    - Repeat
  • 32988 2022-026
    Material Weakness Repeat
  • 32989 2022-020
    - Repeat
  • 32990 2022-021
    - Repeat
  • 32991 2022-025
    Significant Deficiency Repeat
  • 32992 2022-026
    Material Weakness Repeat
  • 32993 2022-021
    - Repeat
  • 32994 2022-026
    Material Weakness Repeat
  • 32995 2022-021
    - Repeat
  • 32996 2022-026
    Material Weakness Repeat
  • 32997 2022-021
    - Repeat
  • 32998 2022-022
    -
  • 32999 2022-026
    Material Weakness Repeat
  • 33000 2022-027
    Material Weakness
  • 33001 2022-023
    - Repeat
  • 33002 2022-028
    Material Weakness
  • 33003 2022-024
    -
  • 33004 2022-029
    Material Weakness
  • 609425 2022-021
    - Repeat
  • 609426 2022-026
    Material Weakness Repeat
  • 609427 2022-021
    - Repeat
  • 609428 2022-026
    Material Weakness Repeat
  • 609429 2022-021
    - Repeat
  • 609430 2022-026
    Material Weakness Repeat
  • 609431 2022-020
    - Repeat
  • 609432 2022-021
    - Repeat
  • 609433 2022-025
    Significant Deficiency Repeat
  • 609435 2022-021
    - Repeat
  • 609436 2022-026
    Material Weakness Repeat
  • 609437 2022-021
    - Repeat
  • 609438 2022-026
    Material Weakness Repeat
  • 609439 2022-021
    - Repeat
  • 609440 2022-022
    -
  • 609441 2022-026
    Material Weakness Repeat
  • 609442 2022-027
    Material Weakness
  • 609443 2022-023
    - Repeat
  • 609444 2022-028
    Material Weakness
  • 609445 2022-024
    -
  • 609446 2022-029
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $11.98M
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.29M
97.029 Flood Mitigation Assistance $985,623
11.307 Economic Adjustment Assistance $711,283
14.218 Community Development Block Grants/entitlement Grants $671,489
59.075 Shuttered Venue Operators Grant Program $557,070
20.507 Federal Transit_formula Grants $527,315
20.527 Public Transportation Emergency Relief Program $350,000
10.927 Emergency Watershed Protection Program - Disaster Relief Appropriations Act $305,261
20.500 Federal Transit_capital Investment Grants $228,751
16.609 Project Safe Neighborhoods $94,765
16.710 Public Safety Partnership and Community Policing Grants $78,912
14.239 Home Investment Partnerships Program $69,445
20.219 Recreational Trails Program $32,488
20.600 State and Community Highway Safety $32,271
45.312 National Leadership Grants $28,121
16.034 Coronavirus Emergency Supplemental Funding Program $20,900
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $17,922
15.916 Outdoor Recreation_acquisition, Development and Planning $15,356
20.205 Highway Planning and Construction $12,625
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4,602
97.039 Hazard Mitigation Grant $3,725
16.751 Edward Byrne Memorial Competitive Grant Program $3,176
16.588 Violence Against Women Formula Grants $2,007
16.738 Edward Byrne Memorial Justice Assistance Grant Program $1,107