FAC Explorer

Finding 9263 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-22
Audit: 12655
Organization: City of Greenville, North Carolina (NC)
Auditor: Cherry Bekaert LLP

AI Summary

  • Core Issue: The City spent Community Development Block Grant funds without prior HUD approval, violating program rules.
  • Impacted Requirements: Funds must not be obligated or spent until the Request for Release of Funds and environmental certification are approved.
  • Recommended Follow-Up: Establish a process to ensure timely completion of all grant-related reporting and requests each year.

Finding Text

Finding: 2023-002 US Department of Housing and Urban Development Assistance Listing Number 14.218 Program Name: Community Development Block Grant Nonmaterial noncompliance – Special Tests and Provisions Criteria: Community Development Block Grant funds cannot be obligated or expended before receipt of HUD’s approval of a Request for Release of Funds (RROF) and environmental certification in accordance with 24 CFR 58. Condition: The City did not complete the RROF in current fiscal year and therefore the City obligated and expended program funds before HUD approval. Effect: The City is not in compliance with the requirements of the program. Questioned costs: None noted. Cause: Management oversight in the transition of key employees. Recommendation: We recommend the City implement a process to ensure all reporting and requests for the grant are completed each year going forward. Management’s Response: Management agrees with the finding and is implementing procedures to correct this which is discussed in the corrective action plan.

Corrective Action Plan

Finding: 2023-002 Name of contact person: Jacob Joyner, Director of Financial Services Corrective Action: The City will add oversight over the requests and reporting of grants to ensure that all steps are completed correctly. Proposed Completion Date: February 1, 2024

Categories

Special Tests & Provisions HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 9262 2023-001
    Significant Deficiency
  • 9264 2023-001
    Significant Deficiency
  • 9265 2023-002
    Significant Deficiency
  • 9266 2023-001
    Significant Deficiency
  • 9267 2023-002
    Significant Deficiency
  • 9268 2023-001
    Significant Deficiency
  • 9269 2023-002
    Significant Deficiency
  • 9270 2023-001
    Significant Deficiency
  • 9271 2023-002
    Significant Deficiency
  • 9272 2023-001
    Significant Deficiency
  • 9273 2023-002
    Significant Deficiency
  • 585704 2023-001
    Significant Deficiency
  • 585705 2023-002
    Significant Deficiency
  • 585706 2023-001
    Significant Deficiency
  • 585707 2023-002
    Significant Deficiency
  • 585708 2023-001
    Significant Deficiency
  • 585709 2023-002
    Significant Deficiency
  • 585710 2023-001
    Significant Deficiency
  • 585711 2023-002
    Significant Deficiency
  • 585712 2023-001
    Significant Deficiency
  • 585713 2023-002
    Significant Deficiency
  • 585714 2023-001
    Significant Deficiency
  • 585715 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $960,352
21.027 Coronavirus State and Local Fiscal Recovery Funds $813,419
14.218 Community Development Block Grants/entitlement Grants $265,387
20.507 Federal Transit_formula Grants $258,626
16.922 Equitable Sharing Program $224,662
93.238 Nc Dept. of Environmental Quality - Arpa $105,000
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $41,784
16.710 Public Safety Partnership and Community Policing Grants $20,425
14.239 Home Investment Partnerships Program $20,000
16.034 Coronavirus Emergency Supplemental Funding Program $11,060
16.738 Edward Byrne Memorial Justice Assistance Grant Program $3,930