Finding Text
Community Development Block Grant – AL# 14.218, Reporting
Condition: ASP, a sub-recipient, did not submit their Quarter 3 report in a timely manner, which
is in violation of the grant agreement ASP has with the pass-through entity, City of Johnson City,
TN.
Criteria: The grant agreement with the City requires an annual report, a projected expenditures
report, and four quarterly reports be submitted by ASP in a timely manner.
Cause: ASP failed to submit their Quarter 3 report before it was due.
Effect: ASP violated their agreement with the City and submitted their report late.
Context: The Quarter 3 report required by the grant agreement between ASP and the City of
Johnson City was not submitted timely.
Questioned Costs: N/A
Recommendation: ASP should submit all required reports in a timely manner per the grant
agreement. Additionally, ASP should review controls and procedures in place to ensure that there
are policies to help aid with timely report completion.
Repeat Finding: No.
Management’s Response: ASP is currently engaged in home rehabilitation projects under an
agreement with Johnson City CDBG. This agreement stipulates that quarterly reports must be
submitted by the 15th of the month following the quarter. Despite completing the required work
and accurately tracking expenses, the report due on 10/16/2023 was submitted a little over 2
weeks late on 11/2/2023 due to an omission by staff. However, ASP has
maintained communication with the grant administrator at Johnson City and has remained
compliant with all other aspects of the contract. The delayed submission of the quarterly report
has not impacted ASP’s favorable standing with the city, and we have promptly rectified the
situation, ensuring full compliance with the agreement