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How EY can help
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EY Insurance & Federal Claims Services teams help clients with disaster assistance through federal disaster recovery grants and insurance claims services.
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Grantee issues
1. Preventing duplication of benefits: grantees must develop a framework to include detailed procedures to prevent duplication of benefits. Audits have shown that grantees often establish high-level processes without properly verifying for duplication before fund disbursement.¹
To reduce this risk, grantees should evaluate whether procedures align with requirements in the Universal Notice. Regular reviews of activity-level procedures before processing applications can help identify potential duplications early in the process.
2. Effective monitoring: a lack of effective monitoring can lead to significant compliance issues.
Grantees should implement robust monitoring policies that include periodic assessments of project performance and tracking of corrective actions.² Establishing clear performance metrics and confirming inclusion of these in subrecipient agreements will enhance accountability and facilitate compliance with national objectives.
3. Financial controls and oversight: weak financial controls can jeopardize the integrity of CDBG-DR programs.
Grantees should develop and enforce strict financial management policies, so funds are used appropriately. This includes conducting regular reviews of financial transactions and confirming expenditures are supported by adequate documentation.³ Training staff on financial management leading practices can further strengthen oversight.
4. Timely project implementation: delays in project implementation hinder recovery efforts and lead to unspent funds.
Grantees should establish clear timelines for project milestones and have adequate staffing or vendor support in place to meet these deadlines.4 Regular progress reviews can help identify bottlenecks and facilitate timely decision-making.
5. Procurement processes: inadequate procurement processes can result in noncompliance with federal regulations.
Grantees must develop clear procurement policies that outline necessary documentation and compliance requirements with 2 CFR 200.5 Providing procurement training on common leading practices, including requiring subrecipients to send grantees solicitations prior to issuance, can assist in confirming purchases are justified and documented appropriately.