CITY OF GREENVILLE, NORTH CAROLINA

Finding: 2024-001 US Department of Housing and Urban Development Assistance Listing Number 14.239 Program Name: Home Investment Partnership Program Material noncompliance and Material Weakness – Special Tests and Provisions – Housing Quality Standards Criteria: In accordance with Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not complete the required housing quality inspections timely or annually as required by grant guidelines. Effect: The City was not able to ensure that proper housing quality standards are being met. Cause: The City’s Housing and Neighborhood Development department did not have a proper system in place to ensure that housing inspections are performed as scheduled, regardless of whether an employee is on leave. Recommendation: We recommend the City include cross training in their system of tracking and documenting housing quality inspection, so that more than one staff member can perform the required inspections to ensure that inspections and needed repairs are performed on a timely basis. Views of Responsible Officials: Management agrees with the finding.

Finding: 2023-001 US Department of Housing and Urban Development Assistance Listing Number 14.218 Program Name: Community Development Block Grant Nonmaterial noncompliance - Reporting Criteria: In accordance with the Federal Funding Accountability and Transparency Act (FFATA) prime contractors awarded a Federal contract subject to Federal Acquisition Regulation clause 52.204-10 are required to file a FFATA subaward report for subcontracts greater than $30,000. Condition: The City had one subaward of $30,000 in the current fiscal year and did not complete or submit the FFATA report during the current fiscal year. Effect: The City is not in compliance with the reporting requirements related to the program. Questioned costs: None noted. Cause: The City was unaware of the requirement to file the FFATA report. Recommendation: We recommend the City review all grant agreements to ensure all applicable reporting requirements are properly completed each year going forward. Management’s Response: Management agrees with the finding and is implementing procedures to correct this which is discussed in the corrective action plan.

Finding: 2023-002 US Department of Housing and Urban Development Assistance Listing Number 14.218 Program Name: Community Development Block Grant Nonmaterial noncompliance – Special Tests and Provisions Criteria: Community Development Block Grant funds cannot be obligated or expended before receipt of HUD’s approval of a Request for Release of Funds (RROF) and environmental certification in accordance with 24 CFR 58. Condition: The City did not complete the RROF in current fiscal year and therefore the City obligated and expended program funds before HUD approval. Effect: The City is not in compliance with the requirements of the program. Questioned costs: None noted. Cause: Management oversight in the transition of key employees. Recommendation: We recommend the City implement a process to ensure all reporting and requests for the grant are completed each year going forward. Management’s Response: Management agrees with the finding and is implementing procedures to correct this which is discussed in the corrective action plan.

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