An audit performed by the Office of Inspector General (OIG) last year
found that the city had not been following certain requirements laid out by the Housing and Urban Development (HUD) and the Community Development Block Grant (CDBG) program. As part of this audit, we have updated our policies, implemented new procedures, made sure we have proper documentation, and have required more training for our staff. After these immediate changes, the OIG commended the city for its commitment to address the issues identified in the audit and its efforts to continue working with HUD.
At the city council meeting tonight, the council will decide whether they will authorize the Community and Economic Development department to repay the HUD and CDBG program. This repayment of $154,160 to HUD is based on staff incorrectly charging their timecards to the grant-funded account instead of a non-grant funded account. To ensure this won’t happen again, all staff timecards have been moved to a non-grant funded cost center.
The repayment would be unique because the money that would be coming from the Community and Economic Development’s general fund would be going right back into the continuing development of our city through the CDBG program. This repayment will restore integrity with the HUD, and we look forward to our continued funding relationship with them.