FAC Explorer

Finding 972125 (2023-005)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2024-05-02
Audit: 305307
Organization: City of New Iberia (LA)
Auditor: Kolder Slaven and Company

AI Summary

  • Issue: The City deposited LCDBG funds into a clearance account instead of a separate non-interest bearing account as required.
  • Impact: This action violates the 2023 LCDBG Grantee Handbook, leading to non-compliance with grant agreements.
  • Follow-up: The City plans to implement new policies to ensure proper account usage for LCDBG funds moving forward.

Finding Text

Criteria The 2023 Louisiana Community Development Block Grant (LCDBG) Grantee Handbook requires that funds from LCDBG contracts be deposited into separate non-interest bearing accounts. Condition The City deposited grant funds for the current LCDBG contract into a clearance account. Cause The City was not aware that the clearance account was not allowed to be used for LCDBG funds. Effect The City did not comply with the grant agreement regarding the use of a separate bank account. Recommendation The City should implement policies and procedures to ensure that separate accounts are utilized for LCDBG funds. Views of Responsible Officials and Planned Corrective Action The City agrees with the finding and has established policies and procedures to ensure that separate accounts will be utilized.

Categories

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.66M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.02M
66.458 Capitalization Grants for Clean Water State Revolving Funds $585,485
15.622 Sportfishing and Boating Safety Act $185,216
15.605 Sport Fish Restoration Program $173,153
15.663 Nfwf-Usfws Conservation Partnership $47,346
14.871 Section 8 Housing Choice Vouchers $18,940
16.738 Edward Byrne Memorial Justice Assistance Grant Program $12,580