Finding Text
Condition and criteria: In the Consolidated Annual Performance and Evaluation Report (CAPER) required by HUD, there were differences in amounts reported for available funds and expense in the narrative sections of the goals and outcomes and resources and investments. Similar differences were reported in the expected resources in the Annual Action Plan. In addition, the PR26 Financial Summary Report should list the beginning unexpended CDBG funds so that the report does not show a negative available amount at year end. The City has also not been entering amounts in the cash disbursed line in the report, causing the report to show cash on hand that should be zero at fiscal year end. Cause: IDIS does not allow negative amounts, so the report is prepared on the cash basis for revenues and the City has to supplement reporting with remarks detailing status. Context and effect: Adjustments, narratives, and remarks are needed to detail the status of the programs. Auditor's recommendation: We recommend that the City continue to work with HUD and the instruction manual on IDIS reporting and to fill out all applicable sections to alleviate negative amounts and to ensure that the reports are accurately presented. Management response: Management agrees with the auditor's recommendation. Since the audit, the City has made strides to improve its HUD grant reporting with the IDIS system that can better meet the needs of all stakeholders.