FAC Explorer

Finding 627320 (2022-007)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-07-27
Audit: 53428
Organization: City of Baton Rouge - Parish of East Baton Rouge (LA)
Auditor: Postlethwaite & Netterville Apac

AI Summary

  • Core Issue: Staff managing the CDBG grant lack full training on the Uniform Guidance, risking compliance with federal regulations.
  • Impacted Requirements: Internal controls may fail to identify unallowable costs, as required by Section 200.303 of the Uniform Guidance.
  • Recommended Follow-Up: Ensure comprehensive training for grant administrators on cost principles and implement new software for better documentation management.

Finding Text

2022-007) Internal Controls for Allowable Costs Questioned Costs: N/A Department of the Housing and Urban Development 14.218 Community Development Block Grant (CDBG) Grant No(s): All grant numbers identified on the Schedule of Expenditures of Federal Awards as CDBG ALN #14.218 Criteria: Section 200.303 of the Uniform Guidance requires grant recipients to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. A key part of internal controls is knowledge and training of those individuals responsible for compliance in the cost principles, subpart E of the Uniform Guidance. Condition: Those responsible for administration of the CDBG entitlement grant are not fully trained in all of the aspects of the Uniform Guidance. Universe/ Population: Not applicable, the audit procedure detecting this condition did not involve transactional testing. Effect: The City-Parish?s internal controls might not detect and prevent unallowable costs to the programs. Cause: The City-Parish transitioned the CDBG program?s administration during 2022. Recommendation: Those responsible for grants administration and compliance should be fully trained in the cost principles of the Uniform Guidance. View of Responsible Officials: The City-Parish transitioned the administration of the OCD in late 2021 throughout 2022. The new leadership self-identified the need for additional staff training, coaching, and technical assistance and began to invest in individual development plans for all program administrators and analysts. While additional training can only improve knowledge of the Uniform Guidance and reduce the likelihood of internal controls not detecting and preventing unallowable costs to the programs. The OCD provided a sample of reimbursements to the auditors for transactional testing which indicated that no unallowable activities were permitted in 2022. The Office of Community Development had self-identified opportunities for certain process improvements for internal controls to detect issues in backup documentation. The City-Parish procured a software that will serve as the system of record and is currently implementing that new software. Moving forward, the OCD team will have the systems in place to assess, reject, and approve the documentation required from subrecipients more thoroughly and efficiently.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 50873 2022-006
    Significant Deficiency Repeat
  • 50874 2022-007
    Significant Deficiency
  • 50875 2022-008
    Significant Deficiency
  • 50876 2022-009
    Significant Deficiency
  • 50877 2022-006
    Significant Deficiency Repeat
  • 50878 2022-007
    Significant Deficiency
  • 50879 2022-010
    Material Weakness
  • 50880 2022-011
    Material Weakness
  • 50881 2022-012
    Material Weakness
  • 50882 2022-012
    Material Weakness
  • 50883 2022-002
    Significant Deficiency Repeat
  • 50884 2022-003
    -
  • 50954 2022-004
    Significant Deficiency
  • 50955 2022-005
    Significant Deficiency
  • 50956 2022-013
    Significant Deficiency
  • 50957 2022-014
    Significant Deficiency
  • 627315 2022-006
    Significant Deficiency Repeat
  • 627316 2022-007
    Significant Deficiency
  • 627317 2022-008
    Significant Deficiency
  • 627318 2022-009
    Significant Deficiency
  • 627319 2022-006
    Significant Deficiency Repeat
  • 627321 2022-010
    Material Weakness
  • 627322 2022-011
    Material Weakness
  • 627323 2022-012
    Material Weakness
  • 627324 2022-012
    Material Weakness
  • 627325 2022-002
    Significant Deficiency Repeat
  • 627326 2022-003
    -
  • 627396 2022-004
    Significant Deficiency
  • 627397 2022-005
    Significant Deficiency
  • 627398 2022-013
    Significant Deficiency
  • 627399 2022-014
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $37.49M
21.023 Emergency Rental Assistance Program $25.10M
20.205 Highway Planning and Construction $6.92M
97.039 Hazard Mitigation Grant $6.14M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $5.84M
97.029 Flood Mitigation Assistance $5.47M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $4.75M
59.075 Shuttered Venue Operators Grant Program $3.52M
17.258 Wia Adult Program $1.54M
14.218 Community Development Block Grants/entitlement Grants $1.32M
17.259 Wia Adult Program $1.17M
20.106 Airport Improvement Program $1.13M
93.569 Community Services Block Grant $1.11M
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $936,096
17.278 Wia Adult Program $879,136
93.137 Community Programs to Improve Minority Health Grant Program $818,074
93.686 Ending the Hiv Epidemic: A Plan for America Ryan White Hiv/aids Program Parts A and B (b) $757,086
93.600 Head Start $678,481
14.231 Emergency Solutions Grant Program $602,607
10.558 Child and Adult Care Food Program $586,510
93.568 Low-Income Home Energy Assistance $339,173
97.067 Homeland Security Grant Program $245,647
20.600 State and Community Highway Safety $202,452
93.658 Foster Care_title IV-E $119,398
93.498 Provider Relief Fund $113,017
93.127 Emergency Medical Services for Children $101,508
95.001 High Intensity Drug Trafficking Areas Program $97,145
20.616 National Priority Safety Programs $79,996
16.034 Coronavirus Emergency Supplemental Funding Program $78,600
14.905 Lead Hazard Reduction Demonstration Grant Program $76,888
20.607 Alcohol Open Container Requirements $75,705
14.241 Housing Opportunities for Persons with Aids $67,030
97.042 Emergency Management Performance Grants $61,857
16.843 Gulf States Regional Law Enforcement Technology Training and Technical Assistance Initiative (b) $30,000
16.738 Edward Byrne Memorial Justice Assistance Grant Program $21,000
66.817 State and Tribal Response Program Grants $20,000
17.277 Wia Adult Program $14,798
16.609 Project Safe Neighborhoods $10,854
14.239 Home Investment Partnerships Program $9,810
97.024 Emergency Food and Shelter National Board Program $7,912
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $7,356
10.664 Cooperative Forestry Assistance $4,130
93.069 Public Health Emergency Preparedness $1,861
93.914 Hiv Emergency Relief Project Grants $201
97.044 Assistance to Firefighters Grant $12