Gustav-Ike Parish Outreach Representatives and other OCD-DRU staff members will,
from time to time, send updates, clarifications, further guidance, etc. to parish and
municipal officials. These communications are gathered here for future reference.
January 23, 2015
Compliance Issues Update
In March 2014 OCD-DRU sent communication to our grantees describing the most frequent types of concerns and findings identified by our agency during on-site monitoring reviews of grantees and sub-recipients. Also noted was where to find information related to these issues in the CDBG Regulations and in the OCD-DRU Grantee Administration Manual, so that grantees and sub-recipients could take corrective actions before their next monitoring visit.
Below is an update based on the results of OCD-DRU’s monitoring visits throughout 2014, along with the appropriate references in the Grantee Administration Manual to address the issues. Please use these to ensure that your disaster recovery CDBG work is in line with HUD regulations and ready for on-site monitoring.
- Use of Other Reference Resources:
Quite often this past year, grantees/sub-recipients have indicated that, in implementing their disaster recovery CDBG program/project, they have referred to guidance from the state’s regular CDBG program or materials provided by the Louisiana Municipal Association. The disaster recovery CDBG program, while similar to the regular CDBG program, has many different requirements, and the official documents that need to be used are the OCD/DRU Disaster Recovery CDBG Grantee Administration Manual and HUD regulations 24 CFR Part 570.
Concerns and findings continued to include:
- Lack of complete procurement policies and procedures that comply with 24 CFR Part 85.36 or, for non-profit entities, 24 CFR Part 84.40. A sample of a procurement policy can be found in Exhibit 6-1 of the Grantee Administration Manual.
- Failure to obtain OCD/DRU approval when only one bid is received. See Section 6, subsection 10.0 in the Grantee Administration Manual.
- Use of RFP and RFQ evaluation criteria that has the effect of limiting free and open competition. See Exhibit 6-8 in the Grantee Administration Manual.
- Failure to include all CDBG assurances in each contract. See Exhibit 5-6 in the Grantee Administration Manual.
- Awarding an administrative consultant contract and an A/E contract to the same firm. Even if the procurement for both complied with procurement procedures, this situation is seen as a real or perceived conflict under 24 CFR Part 570.489(h) that must be addressed prior to the award of such contracts.
- Failure to assure that potential contractors are not on the Federal Debarment list prior to the award of a contract. See Section 6, subsection 13.1 of the Grantee Administration Manual.
- Lack of evidence of a “good faith effort” identifying efforts to reach out to minority and women owned businesses when procuring goods and services. See 24 CFR Part 85.36 and Section 8 of the Grantee Administration Manual.
- Not properly advertising procurement solicitations to ensure that all potential bidders know that the project is funded with Disaster CDBG funds. See Section 6 of the Grantee Administration Manual.
- Lack of evidence that the entity’s Labor Compliance Officer reviewed weekly payrolls. See Section 7 of the Grantee Administration Manual.
- Failure of the prime contractor to collect weekly payrolls from subcontractors. See Section 7 of the Grantee Administration Manual.
- Uniform Relocation and Acquisition:
Failure to follow the proper property acquisition procedures as required by 49 CFR Part 24, Uniform Relocation Assistance and Real Property Acquisition for Federally-Assisted Programs, and Section 10 of the Grantee Administration Manual.
- Lack of financial policies and procedures. See Section 5, subsections 2 and 8 of the Grantee Administration Manual.
- Failure to deposit CDBG Disaster Recovery funds in a non-interest bearing account. See Section 5, subsection 4.3.1 of the Grantee Administration Manual.
- Failure to perform a budget to actual reconciliation or not comparing expenditures to the approved CEA/Application budget. See Section 5, subsection 8.1.
- Records Management:
Lack of a records management system to properly account for all required CDBG compliance requirements. See Section 4 of the Grantee Administration Manual.
As always, if you have questions or need technical assistance, please contact your OCD-DRU Outreach Representative.