Finding Text
Special Tests ? Required Certifications and HUD Approvals (Significant Deficiency ? Special Tests) Condition: During performing procedures and testing over compliance with Special Tests ? Required Certifications and HUD Approvals, we noted the City did not obtain the required certifications or approvals before obligating or expending funds. Criteria: The Uniform Guidance states that ?CDBG funds (and local funds to be reimbursed with CDBG funds) cannot be obligated or expended before receipt of HUD?s approval of a Request for Release of Funds (RROF) and environmental certification?. Cause: The design and operation of controls appear to be ineffective regarding ensuring proper certification and approval for CDBG expenditures. Effect: Potential unallowable costs being charged to the grant and noncompliance with HUD regulations. Isolated Instance or Systematic Problem: Systematic problem. Repeat of Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): Yes ? 2021-003 Recommendation: We recommend the City ensure that expenditures are approved only after obtaining proper certifications and approvals.