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LTC 140-2024 Community Development Block Grant (CDBG) Program MonitoringM IAM I BEACH OFFICE OF THE CITY MANAGER LTC# LETTER TO COMMISSION TO: FROM: Honorable Mayor Steven Meiner and Members of the City Commission Rickelle Williams, Interim City Manager 1{ b.) DATE: SUBJECT: Community Development Block Grant (CDBG) Program Monitoring The purpose of this Letter to Commission (L TC) is to inform you of the outcomes of the recent onsite monitoring of the Community Development Block Grant (CDBG) program conducted by the U.S. Department of Housing and Urban Development (HUD). HUD transmitted a letter (attached) outlining the results of their review, and I am happy to report that there were no findings or concerns identified. HUD's monitoring process is critical in ensuring program effectiveness, management efficiency, and compliance with applicable federal regulations. The Housing and Community Development (HCD) division within the Office of Housing and Community Services, underwent thorough scrutiny during the monitoring period from February 5, 2024, to February 13, 2024. The review encompassed various aspects of our CDBG program administration, including grant management, financial management, and eligibility of services and satisfaction. Representatives from HUD conducted interviews, examined documentation, visited sub-recipients contracted for public service activities, and assessed our program's adherence to federal requirements. I am pleased to highlight the following key points from the monitoring review: 1. Grant Management: We demonstrated compliance with overall grant management, including effective oversight of subrecipient activities. 2. Subrecipient Management: We effectively monitored subrecipient performance. 3. Services and Satisfaction: All CDBG-funded public services met federal eligibility criteria. 4. Financial Management: All expenses were in line with federal regulations. Based on the thorough assessment conducted by HUD representatives, no findings or concerns were identified in any of the areas reviewed. This outcome speaks volumes about the dedication and professionalism of our team. I want to extend my sincere appreciation to HCD for their hard work and cooperation throughout the monitoring process. Their commitment to excellence has resulted in a commendable outcome for the City. For more information, please contact Alba Tarre, Director, Office of Housing and Community Services, at albatarre@miamibeachfl.gov or ext. 26175. Attachment AAT AAT 140-2024 April 12, 2024 U .S . D E P A R T M E N T O F H O U S IN G A N D U R B A N D E V E L O P M E N T OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT Miami Field Office Brickell Plaza Federal Building 909 S.E. 1 Ave, Room 500 Miami, FL 33131-3042 Dr. Alba Tarre, Director Miami Beach, Office of Housing & Community Services 1700 Convention Center Drive Miami Beach, Florida 33139 SU B JE C T : F iscal Y ear 2024 On-site Monitoring C om m u n ity D evelop m en t B lock G ra n t (CDBG) Grant Number - (B-22-MC-12-0014) F ebru ary 5, 2024 - F ebruary 13, 2024 D ear D r. T arr e: F ro m F ebru ary 5, 20 24 - F eb ru ary 13 , 2024 , thi s O ffi ce con ducted an onsite monitoring of th e C omm un ity D evelopm ent B lock G ra n t (C D B G ) pro gra m in order to assess your organ ization 's perfo rm ance an d com p liance w ith ap p licab le F ed eral pr o gram requirem ent s. P rogram perform an ce w as assessed thr ou gh a review of op era tion s, fi le docu m en tation , in terv iew s and on site in sp ection s. H U D m oni torin g m ay resu lt in th e iden tifi cation of Fin dings, C on cern s, or exem plary pra ctices. T his letter tra n sm its th e m on itoring rev iew resu lts an d id entifi es no in stances of non com p liance or con cern s in the areas review ed . A F in din g is a defi ciency in pro g ra m perform ance based on a violation of a statu tory or regu latory requ irem en t. A C oncern is a defi cien cy in pro gra m perfo rm an ce that is not based on a statu tory or regu latory requirem en t bu t is bro u gh t to th e gra ntee's attention . C orr ective A ction s to address th e non com pliance are identifi ed fo r all F indin gs. R ecomm en ded C orr ective A ction s are iden tifi ed fo r C on cern s. A n exem plary pra ctice is a notew ort hy pra ctice or activity being carri ed ou t by the gra n tee an d m ay possibly be du plicated by an other gra ntee. INTRODUCTION M on itori n g is th e pri n cipal m ean s by w h ich H UD ensu res pro gra m effectiveness an d m anagem en t effi cien cy , an d that pro g ra m s are carri ed ou t in com pli an ce w ith app licable law s an d regu lation s. It assists gran tees in im pro v ing perfo rm ance, develop in g or in creasin g capacity , and au gm en tin g m an agem en t and techni cal sk ill s. M oni tori n g is con du cted w ithi n a specifi c, id en tifi ed scope ofr eview , based on sam pling of part icu lar gra n ts, activ ities, and benefi ciari es, as app licable. In determ in in g w hi ch gra n tees w ill be m on itored, the D epart m en t uses a ri sk -based appro ach to ra nk gra ntees, pro gra m s and fu nction s, in cl ud in g assessin g th e D epartm en t's exposure to fr aud, w aste an d m ism an agem ent. T h is pro cess not on ly assists the D epart m en t in determ ini n g w h ich gra n tees to m on itor, bu t also identifi es w h ich pro gra m s an d fu nction s w ill be review ed . Sp ecifi cs rel atin g to th is review are as fo llow s: H U D R eview er(s): G ra n tee Staff/P art icip an ts: N akia M cM orri s, C P D R epresen tativ e N ora C asal C in tro n , Sen ior C P D R epresentative D r. A lba T arr e, D irector, H ou sin g & C om m un ity Serv ices www.hud.gov cspanol.hud.gov Gra nt M an agem ent Overa ll M anagem ent S e r v ic e s a n d S at is fa c ti o n E ligib ility F in a n c ia l M an a g em ent C ost A llow ability and Com pliance w ith Public S e r v ic e s , Planning and A dm inistra tion Caps The Exhibits referenced were used to guide the review and are from the Com m unity Planning and D evelopm ent M onitoring H andbook 6509.2, w hich is available here: https:/ /w w w .hud.gov/pro gra m offi ces/adm inistra tion/hudclips/handbooks/ cpd/6509 .2. AREAS REVIEWED AND CONCLUSIONS Grant Management Overall Management Exhibit 3-17, Guide for Review of Overall Management Systems, was used to determine whether the city developed systems to ensure the overall grant management of CDBG funds are in compliance with 24 CFR Part 570. Grantees must monitor grant and subrecipient supported activities to assure compliance with applicable Federal requirements and that performance goals are being achieved. Grantee monitoring must cover each program, function, or activity. Grant recipients are responsible to ensure that CDBG funds are used in accordance with all program requirements, and for determining the adequacy of performance by managing the day-to- day operations of grant and subgrant supported activities. The following documents were examined as part of the monitoring review: • Policies and procedures • Organizational chart • Progress Report In addition, interviews were conducted with staff regarding the procedures used to implement and manage the CDBG program. Based on this segment of the monitoring review, it was determined that the city is in compliance with this portion of the review. As a result, there are no Findings or Concerns identified. Subrecipient Management Exhibit 3-16, Guide for Review of Subrecipient/Community Based Development Organization (CBDO) Management, was used to determine if the city is adequately managing its subrecipients and monitoring subrecipient performance. The regulations at 24 CFR 570.501- 503, and 2 CFR 200.328 require program participants to monitor day-to-day operations of subrecipient N a m e o f ID IS A ctiv ity V o u ch er D ra w d o w n F isca l Y ea r A ctiv ity N u m b er N u m b er A m o u n t A ctiv ity F u n d ed CMB 1062 6820257 $11,990.97 FY 2022 Administration 6765726 $4,473.85 FY 2022 ofCDBG 6752024 $13,340.46 FY 2022 Program Grocery 1075 6783152 $25,737.75 FY 2021 Assistance $5,305.60 FY 2022 Program $8,471.45 FY 2020 Based on this segment of the monitoring review, it was determined that the city is in compliance with the Cost Allowability requirements. As a result, there are no Findings of Concerns identified. NEXT STEPS If you have any technical corrections to HUD's determinations or conclusions outlined in this monitoring letter, please address these issues in writing to this Department within 30 days of the date of this letter. Your written communication should explain the needed correction, along with supporting evidence. All communications should be sent to the attention of your HUD Reviewer. I would like to thank you and your staff for your professionalism and cooperation during the review. You are overseeing valuable programs that are successfully supporting housing and community development activities. Your HUD Reviewer, Nakia McMorris, CPD Representative, is available to discuss the results of this monitoring letter or provide technical assistance, if requested, and can be reached at Nakia.P.McMorris@hud.gov. Sincerely, DAVID NOGUERA DOigtally signed by. DAVI NOGUERA ON. CN + DOAVI NOGUERA C+ US O- US Government OU Department of Ho/sing and Urban Dovolopmenl. Otrico of Community Planning and Development D0at0 2024 04.02 1858 48 .0400 David Noguera, Director Office of Community Planning and Development cc: Cristina Cabrera, CDBG Project Coordinator, City of Miami Beach