Finding Text
FINDING 2022-005
FEDERAL PROGRAMS COMMUNITY DEVELOPMENT BLOCK GRANTS- ENTITLEMENT GRANTS
CLUSTER:
COMMUNITY DEVELOPMENT BLOCK GRANT/ ENTITLEMENT GRANTS
(ASSISTANCE LISTING NUMBER 14.218)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL
COMPLIANCE
REQUIREMENT PROGRAM INCOME
CONDITION During the Program Income test, I noted that the Municipality did not record $96,750
of program income received during the fiscal year 2021-2022, in the Integrated
Disbursement and Information System (IDIS) (OMB No. 2506-0077). This program
income was recorded in IDIS in the fiscal year 2022-2023.
CRITERIA Code of Federal Regulations 24, Section 570.504 (a), stated that the receipts and
expenditures of program income shall be recorded as part of the financial
transactions of the grant program. Also, 24 CFR 570.504(b)(2)(ii) states that if the
recipient chooses to retain program income, that program income shall be disbursed
for eligible activities before additional cash withdrawals are made from the U. S.
Treasury.
CAUSE During the fiscal year 2021-2022, the Program did not maintain appropriate internal
controls to ensure that all program income transactions were recorded timely on the
IDIS system.
EFFECT The program income funds were not available in IDIS, to draw down to pay for eligible
activities.
RECOMMENDATION I recommend management to continue improving the internal controls and
procedures to ensure that the financial transactions related to the program income
are properly recorded in the IDIS System.
QUESTIONED COSTS None
PRIOR YEAR FINDING Not applicable.