Finding Text
Identification of the Federal Program:
Assistance Listing Number: 14.218
Assistance Listing Title: Community Development Block Grants/Entitlement Grants
Federal Agency: U.S. Department of Housing and Urban Development
Pass-Through Entity: N/A
Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561
Assistance Listing Number: 20.106
Assistance Listing Title: Airport Improvement Program
Federal Agency: U.S. Department of Transportation
Pass-Through Entity: N/A
Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021,
3-06-0181-063-2022
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation):
PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below:
SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition:
During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below:
Additionally, we noticed that the following SF-45 were not filed timely:
Cause:
The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not.
Effect or Potential Effect:
The City was not in compliance with the programs’ reporting requirements.
Questioned Costs:
None noted.
Context:
See condition above for the context of the finding.
Identification as a Repeat Finding, If Applicable:
2022-001. Recommendation:
We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle.
Views of Responsible Officials:
Management concurs with the finding.