Finding Text
Federal Program: CDBG Entitlement Grants Cluster; Federal Award Identification Numbers 4600015327 2023-042, 4600015327 2022-0394, and 4600017951 2023-0879; U.S. Department of Housing and Urban Development; Passed through City of Houston Housing and Community Development Department. Criteria: The subrecipient agreement between the City of Houston and The Home requires a Fiscal Report be submitted by the 20th day of the calendar month following the end of each calendar quarter. As noted in the agreement, the Fiscal Report shall consist of a “trial balance taken from its General Ledger or a copy of its Revenue, Expenditures and Balance Sheet; and a copy of its balance reconciliation.” Condition: We noted that the quarterly fiscal reports for calendar year 2023 were not submitted by the 20th day of the calendar month following the end of each calendar quarter. Cause: Prior to sending the Fiscal Report to the City of Houston, The Home’s financial information is approved by the Board of Directors basis during their quarterly scheduled meetings, which occur after the due date of the Fiscal Reports. Potential Effect: As stated in the subrecipient agreement, failure to comply with the reporting requirements is considered to be a breach of the agreement and reimbursements of costs may be withheld until the reports are submitted. Questioned Costs: None. Recommendation: We recommend that a process be developed to submit the Fiscal Report within the prescribed timeframe. Views of Responsible Officials: We have held recent discussions with the City of Houston regarding the Fiscal Report. As a result, it has been agreed that we will submit the Fiscal Report within the required timeframe. The Home will develop a process to ensure that once the Board of Directors has approved the quarterly financial information, the previously submitted Fiscal Reports will be reviewed for consistency. If differences exist, The Home will submit an amended Fiscal Report to the City of Houston for the applicable quarter.