Finding Text
Finding 2022-006 – Activities Allowed or Unallowed
U.S. Department of Housing and Urban Development – COVID-19 - Emergency Solutions Grants Program (ALN 14.231)
Condition: Our allowability sample totaling $461,175 yielded the following unallowable costs charged to the Emergency Solutions Grants Program (ESG) program: $37,950 of 2020 expenditures that the City didn’t draw down and record on the Schedule of Expenditures of Federal Awards until the year ended December 31, 2022 and $54,565 of expenditures that should have been drawn down and charged to the City’s CDBG grant instead of ESG.
Criteria: The City is required to have controls in place to ensure only actual allowable costs are charged to federal programs and that drawdowns from the HUD Integrated Disbursement and Information System (IDIS) are performed timely.
Cause: The City’s procedures to ensure only allowable costs are charged to the ESG program were not adequate and the City did not have appropriate controls in place to ensure accurate and timely IDIS drawdowns.
Effect: The City is not in compliance with allowable cost requirements and may be liable to return funds to HUD.
Repeat Finding: No
Questioned costs known and likely: $175,115
Recommendation: We recommend the City implement internal control procedures to ensure compliance with allowable cost requirements and that IDIS drawdowns are performed timely and accurately.
View of Responsible Official: The City agrees. See the corrective action plan.