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.