We recommend that the Director of the HUD's Buffalo Office of Community Planning and Development instruct City officials to implement procedures to ensure that program income received by subgrantees is properly reported in HUD's integrated Disbursement and Information System and spent before funds are drawn down from the U.S. Treasury.
Publication Report
2016-NY-1002 | January 06, 2016
The City of Niagara Falls, NY Had Weaknesses in Controls Over CDBG-Funded Subgrantee Administered Rehabilitation Activities
We reviewed the City of Niagara Falls’ Community Development Block Grant (CDBG) program. We selected this auditee based on our risk assessment of CDBG grantees administered through the Buffalo, NY, field office, which considered the City’s funding… moreRelated Recommendations
Community Planning and Development
- Status2016-NY-1002-001-AOpenClosed$220,538.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
We recommend that the Director of the HUD's Buffalo Office of Community Planning and Development instruct City officials to provide documentation to adequately support that $70,538 disbursed and $150,000 obligated were for eligible costs. Any costs determined to be ineligible should be reimbursed from non-Federal funds.
- Status2016-NY-1002-001-BOpenClosed
We recommend that the Director of the HUD's Buffalo Office of Community Planning and Development instruct City officials to strengthen monitoring procedures for CDBG-funded subgrantees to ensure compliance with program requirements.
- Status2016-NY-1002-001-COpenClosed$2,516.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
We recommend that the Director of the HUD's Buffalo Office of Community Planning and Development instruct City officials to reprogram unexpended funds of $2,516 on a subgrantee agreement that expired June 30, 2015, for use by other eligible CDBG activities so that these funds are put to better use.
- Status2016-NY-1002-001-DOpenClosed$113,733.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
We recommend that the Director of the HUD's Buffalo Office of Community Planning and Development instruct City officials to spend program income of $113,733 on eligible CDBG activities before drawing down additional CDBG entitlement funds, thus ensuring that these funds are put to better use.
- Status2016-NY-1002-001-FOpenClosed
We recommend that the Director of the HUD's Buffalo Office of Community Planning and Development instruct City officials to strengthen subgrant procedures to ensure that all required documents are received, explanations are obtained when prior performance does not meet goals, and subgrants are executed in a timely manner.