Follow up with the four grantees without adequate supporting documentation and assess their compliance with the financial management requirements in 2 CFR 200.302(b)(3), which require the financial management system of each non-Federal entity to provide for records that adequately identify the source and application of funds for federally funded activities.
Publication Report
2024-FO-0004 | February 09, 2024
Financial Information Collected from CDBG Grantees Needs Improvement
We audited the U.S. Department of Housing and Urban Development (HUD), Office of Community Planning and Development’s (CPD) process for collecting financial information from grantees participating in the Community Development Block Grant (CDBG)… moreRelated Recommendations
Community Planning and Development
- Status2024-FO-0004-001-AOpenClosed
Develop comprehensive guidance and training for grantees on how to prepare the PR 29 report to ensure that the information collected is reliable, accurate, timely, and in compliance with the Uniform Administrative Guidance for Grants and Cooperative Agreements, specifically 2 CFR 200.302(a)(b) and 2 CFR 200.303
Determine whether the funds that were drawn in error need to be repaid to HUD and whether other remediation actions are appropriate.
- Status2024-FO-0004-001-DOpenClosed
Update the CPD Monitoring Handbook to incorporate the review of the PR 29 report when performing financial monitoring reviews.
- Status2024-FO-0004-001-EOpenClosed
Develop written procedures on how to review PR 29 report submissions and monitor resubmissions, late submissions, and nonsubmissions.
- Status2024-FO-0004-001-FOpenClosed
Evaluate and update IDIS to ensure that resubmissions of PR 29 reports are tracked and prior submissions are preserved and correct the system’s misclassification of unsubmitted and uncertified draft PR 29 reports as submitted.
- Status2024-FO-0004-002-AOpenClosed
Determine how often grantees’ requests for reimbursement contain cost outside the quarter and in coordination with OCFO, evaluate CPD’s grant accrual methodology and assumptions to ensure that it adequately considers the impact of these late cost reimbursements.
- Status2024-FO-0004-002-BOpenClosed
Develop guidance that encourages grantees to draw down funds for reimbursement on a regular schedule, not less than quarterly.
- Status2024-FO-0004-002-COpenClosed
Work with OCFO to ensure that CPD collects and reports to OCFO all of the information needed to properly account for all CPD activities in HUD’s financial statements in accordance with Federal financial reporting requirements and accounting standards.
- Status2024-FO-0004-002-DOpenClosed
Update Line 4 - Cash (grant funds) disbursed during the reporting period in the PR 29 report to allow grantees to report all CDBG grant funds disbursed, including funds that have not yet been drawn down from HUD for reimbursement.
- Status2024-FO-0004-003-AOpenClosed
Obtain the required approvals under PRA for the PR 29 report.