Finding Text
2022-001 U.S. Department of Housing and Urban Development CFDA # 14.231, 2022 Award Year, Award Number: Not Provided Emergency Solutions Grant Program Special Tests and Provisions ? Obligations, Expenditure and Payment Requirements Significant Deficiency in Internal Control over Compliance and Non-Compliance Criteria: Emergency Solutions Grant Program (ESG) guidance requires that States are to obligate fund with 60 days from the date of the grant agreement from HUD. This excluded funding under the CARES Act (ESG-CV). Condition: As part of our testing for special tests and provisions compliance requirements, we noted that the board approval for the obligations was outside the 60-day requirement. The board approval was at 124 days. Cause: With additional funding received for ESG-CV, the grant competition for ESG was pushed back to be able to meet the demands of the ESG-CV. The push back caused the timing of the awards to be delayed for obligation. Effect: Awards were not obligated in a timely manner. Questioned Costs: None. Context/Sampling: Not applicable. Repeat Finding from Prior Year(s): No Recommendation: We recommend the authority ensure they monitor the date of the grant agreement from HUD to ensure the obligations are taking place in the required timeframe. Views of Responsible Officials: Management agrees with the finding.