Finding Text
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-20-MC-06-0555, B-20-MW-06-0555, B21-MC-06-0555 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Starting in federal fiscal year 2021, Entitlement Communities, Insular Areas, and non-Entitlement Counties in Hawaii are required to complete the Cash on Hand Quarterly Report (PR29) and submit it to the grantee?s HUD local field office through IDIS. Field offices will review the report for completeness and accuracy. The reporting frequency is the same as required of the SF-425, quarterly. The Quarterly Cash on Hand report must be submitted to the respective field office within 30 days after the end of the reporting period. The following federal fiscal year quarter reporting periods will be used for all quarterly reports. Reporting Period (End Date)/Due Date of Report (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021 December 31, 2021/January 30, 2022 March 31, 2022/April 30, 2022 June 30, 2022/July 30, 2022 Condition: During the audit, we noticed that three out of four quarters the PR29 for CDBG and CDBG CV were not filed within the deadline, as shown below: Reporting Period (End Date)/Due Date of Report/Submission Date (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021/January 3, 2022 December 31, 2021/January 30, 2022/April 26, 2022 June 30, 2022/July 30, 2022/September 20, 2022 Cause: Monitoring control is lacking to ensure timely submission of the required reports. Effect or Potential Effect: The City was not in compliance with the program?s reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommend the City to follow the Uniform Guidance to ensure that the reports are prepared and submitted timely. Views of Responsible Officials: Management recognizes the importance of filling reports timely, especially with Federal funding such as CDBG and HOME. In regards to the PR29 ?Cash on Hand? reports, the City was ? and continues to ? dealing with reconciling program inc. from the past fifteen years. Staff were having difficulty tracking a large amount of program income, and how it was spent, which directly impacted the City?s ability to provide accurate PR 29 reports. Needless to say, this research took considerable time and effort, causing slight delays in posting the ?Cash on Hand? reports. Moving forward Staff will strive to submit the reports by the required deadline and will work with their third-party consultant to assist as necessary. Staff has been in contact with its HUD representatives about the program income issue as well as the difficulty in posting PR 29 reports. Management feels strongly that this relationship with the City?s HUD representatives provides opportunities for improved communication on these and related issues.