Explanation
BACKGROUND: The City received Community Development Block Grant (“CDBG”) funds between January 1, 2017 and December 31, 2020 from the United States Department of Housing and Urban Development (“HUD”). In connection with acceptance of CDBG funding, the City is required to comply with the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Certain labor expenditures totaling $1,009,626.80 were identified during the Department of Finance and Management’s internal review that did not contribute to CDBG program activities and, therefore, were not reimbursable from CDBG. Pursuant to HUD’s Return of Funds guidance, the City must return the funds via wire transfer. This ordinance is necessary to provide for the required reimbursement.
FISCAL IMPACT: This ordinance authorizes the transfer and expenditure of $1,009,626.80 from the General Fund to reimburse the Community Development Block Grant program.
EMERGENCY DESIGNATION: Emergency action is requested to allow the financial transaction to be processed as soon as possible and to mitigate risk of potential penalties from untimely action.
Title
To authorize the Director of Finance and Management to initiate a transaction to reimburse the Community Development Block Grant (CDBG) Program funded by the U.S. Department of Housing and Urban Development (HUD) $1,009,626.80 due to ineligible costs having been charged to the program; to authorize the transfer of $1,009,626.80 within the General Fund; to authorize the expenditure of $1,009,626.80 from the General Fund; and to declare an emergency. ($1,009,626.80)
Body
WHEREAS, the City received funds from the United States Department of Housing and Community Development (“HUD”) for the Community Development Block Grant (“CDBG”) Program; and
WHEREAS, expenditures charged to and reimbursed by CDBG monies must be consistent with the applicable allowable costs and a...
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