Explanation
BACKGROUND: The purpose of this legislation is to return $377.90 to the U.S. Department of Housing and Urban Development (HUD) for Home Investment Partnership Grant (HOME) funds reimbursed in fiscal year 2020. HUD requires grantees to regularly reconcile the personnel expenditures charged to the grant to actual hours worked. After completing the final 2020 reconciliation of HOME administrative expenditures, it was discovered that the City should have reported less in expenditures than the amount that was drawn down and disbursed. Per 2 CFR 200, the City must remit any funds due as a result of refunds, corrections, or other actions to the grantor. The funds will be returned to the City’s Line of Credit with HUD and available for future use on HOME projects.
FISCAL IMPACT: The Department of Development fiscal office has completed the necessary expense corrections to correctly account for the actual grant expenditures and funding in the amount of $377.90 is available.
Title
To authorize the transfer of appropriation of $377.90 within the HOME Entitlement Fund 2201 from the Department of Development to the Department of Finance and Management; and to authorize the Director of the Department of Finance and Management to expend $377.90 from the HOME Fund 2201 for payment of returned funds to the U.S. Department of Housing and Urban Development. ($377.90)
Body
WHEREAS, federal regulations require grantees to return funds due to corrections on funds disbursed from a federal awarding agency; and
WHEREAS, payments from the U.S. Department of Housing and Urban Development for 2020 HOME administrative expenditures have been reimbursed and deposited into the HOME entitlement fund; and
WHEREAS, the City has determined that a portion of the HUD payments for 2020 HOME administrative expenses must be returned due to a financial correction; and
WHEREAS, it is necessary to authorize the transfer of appropriation of $377.90 within the HOME Fund 22...
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