FAC Explorer

Finding 976895 (2022-007)

Significant Deficiency
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2024-06-10
Audit: 308469
Organization: Reach Community Development, Inc. (OR)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: One vendor invoice was paid for a property not listed on the CDBG Address List, violating funding criteria.
  • Impacted Requirements: CDBG funds must only be used for approved minor rehabilitation services as per federal guidelines.
  • Recommended Follow-Up: Ensure all vendor invoices are matched to the approved CDBG property list before processing for reimbursement.

Finding Text

Finding No. 2022-007 CDBG Entitlement Grants Cluster Federal Assistance Listing Number #14.218 Uniform Guidance Compliance Requirement Code: A-Allowable Costs Criteria Owners must use CDBG funded portion of programs to fund minor rehabilitation services to approved recipients /address' in accordance with the Rehabilitation and Preservation Activities (570.202(b)(2) and/or (11)). Condition The owner paid one vendor invoice, of eight tested, that was not listed on the CDBG Address List as reported to Portland Housing Bureau (“PHB”) and was charged through and reimbursed by PHB under their CDBG Grant. Cause REACH's Community Builders Program Manager did not make sure that the invoice was for an approved CDBG property. Effect or Potential Effect CDBG funds may be spent in appropriately and REACH will be required to repay the grants - possible loss of future grants. Questioned Costs: $130. Context In connection with the procedures applied to compliance testing, there was one vendor invoice of 8 tested that was not for an approved CDBG property. Repeat Finding: No Recommendation REACH Community Builders Program Manager should follow procedures to match each vendor invoice to the approved CDBG property listing prior to coding to CDBG and passing through for reimbursement from this grant. Views of Responsible Officials Since the time of this we have made some changes to have the appropriate funding code on each client’s folder/information so that it is easy to see where to charge when making a purchase and the CBP manager is reaching out to PHB on resolution to this instance.

Categories

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

  • 400447 2022-001
    Significant Deficiency Repeat
  • 400448 2022-002
    Significant Deficiency
  • 400449 2022-003
    Significant Deficiency Repeat
  • 400450 2022-004
    Significant Deficiency Repeat
  • 400451 2022-005
    Significant Deficiency Repeat
  • 400452 2022-006
    Significant Deficiency
  • 400453 2022-007
    Significant Deficiency
  • 976889 2022-001
    Significant Deficiency Repeat
  • 976890 2022-002
    Significant Deficiency
  • 976891 2022-003
    Significant Deficiency Repeat
  • 976892 2022-004
    Significant Deficiency Repeat
  • 976893 2022-005
    Significant Deficiency Repeat
  • 976894 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $1.76M
14.275 Housing Trust Fund $1.63M
99.999 Low Income Housing Preservation and Resident Homeownership Act of 1990-Capital Grant $964,955
21.027 Coronavirus State and Local Fiscal Recovery Funds $919,510
14.195 Section 8 Housing Assistance Payments Program $573,080
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $543,690
21.000 Section 607(e ) of the Neighborhood Reinvestment Corporation Act, As Amended $477,500
14.241 Housing Opportunities for Persons with Aids $380,000
14.239 Home Investment Partnerships Program $214,929
21.023 Emergency Rental Assistance Program $32,915