oversight

Interim Report - Potential Antideficiency Act and Generally Accepted Accounting Principle Violations Occurred With Disaster Relief Appropriation Act, 2013, Funds

Published by the Department of Housing and Urban Development, Office of Inspector General on 2018-05-15.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                                                    U.S. DEPARTMENT OF
                                   HOUSING AND URBAN DEVELOPMENT
                                             OFFICE OF INSPECTOR GENERAL




                                                         May 15, 2018

                                                                                                  MEMORANDUM NO:
                                                                                                       2018-FW-0802

Memorandum
TO:              Irving L. Dennis,
                 Chief Financial Officer, F

                 //signed//
FROM:            Kilah S. White,
                 Regional Inspector General for Audit, 6AGA

SUBJECT:         Interim Report - Potential Antideficiency Act and Generally Accepted
                 Accounting Principle Violations Occurred With Disaster Relief Appropriation
                 Act, 2013, Funds


                                                INTRODUCTION

While performing audit work to determine whether the U.S. Department of Housing and Urban
Development’s Office of Community Planning and Development (HUD CPD) monitored and
ensured that grantees complied with the 24-month statutory expenditure requirement contained
in the Disaster Relief Appropriations Act, 2013, we noted issues with (1) the recording of grants
in the Line of Credit Control System (LOCCS) and (2) the grantees’ recording of expenditures in
the Disaster Recovery Grants Reporting (DRGR) system. These issues require immediate action
by the Office of the Chief Financial Officer (OCFO) as they are potential violations of the
Antideficiency Act (ADA) 1 and do not appear to follow generally accepted accounting principles
(GAAP).

HUD Handbook 2000.06, REV-4, sets specific timeframes for management decisions on
recommended corrective actions. For each recommendation without a management decision,
please respond and provide status reports in accordance with the HUD Handbook. Please furnish
us copies of any correspondence or directives issued because of the audit.




1
    HUD Handbook 1830.2, REV-6, Administrative Control of Funds Policies, issued March 22, 2017, designated
    the Chief Financial Officer’s Appropriations Law staff responsible for determining whether an ADA violation
    occurred. See appendix C.

                                                    Office of Audit (Region 6)
                                     819 Taylor Street, Suite 13A09, Fort Worth, TX 76102
                                          Phone (817) 978-9309, Fax (817) 978-9316
                               Visit the Office of Inspector General website at www.hudoig.gov.
                                        METHODOLOGY AND SCOPE
Our ongoing audit generally covered the period January 2013 through January 2018. We started
our audit on May 7, 2017. We performed our fieldwork at CPD’s offices in Washington, DC,
and our Region 6, Fort Worth, TX, offices. We selected six Disaster Relief Appropriations Act,
2013, grantees for our audit work as they received the majority of the funding in multiple rounds.
The grantees included (1) Connecticut, (2) Maryland, (3) New Jersey, (4) New York, (5) New
York City, and (6) Rhode Island.

We reviewed
  • the Disaster Relief Appropriations Act, 2013, the ADA, 2 and the U.S. Government
      Accountability Office’s (GAO) Principles of Federal Appropriations Law; 3
  • the grant agreements for the six grantees, dated from May 14, 2013, to September 6,
      2017;
  • the August 2017 DRGR System Grantee User Manual, version 2.0; 4
  • the February 2017 Managing Expenditure Deadlines policy abstract for Public Law 113-2
      grantees; and
  • CPD’s Office of Block Grant Assistance’s (OBGA) 2-year tracking reports from
      December 2013 to October 2017.

On January 19, 2018, we obtained data downloads from the DRGR system’s FinRept03 report
for all six grantees. These reports showed the status of all six grantees’ 43,103 voucher line
items as of that date, which included more than $8 billion completed and $1.8 billion revised
transactions. The DRGR report contained a data limitation as the report did not list an original
completed transaction if the transaction was revised. Instead, it showed only the revision.
Further, the report showed the revision occurring on the date the original line item processed and
not on the date the revision processed. We tested a limited number of vouchers and determined
that the detailed vouchers in the DRGR system contained both the debit and credit side of a
revision and the date of the revision. Thus, we determined that the data limitation existed solely
within the FinRept03 report, and it had a limited effect on our work and conclusions. However,
we included revised transactions in our results when the grantee’s original transactions would
have been (1) before the grant was awarded, (2) after the grant expired, or (3) more than a year
after the original entry. We tested the data reliability of the DRGR amounts paid by comparing
the amounts paid in a DRGR voucher to the amounts reported paid by LOCCS. 5 We determined
that the DRGR system data were generally reliable for the purposes of our testing. We then used
computer analytical tools to review 100 percent of the transactions to identify (1) the total
amount spent for each grant round, (2) all line item transactions that occurred before and after
2
        The ADA prohibits Federal employees from making or authorizing an expenditure in excess of the amount
        available in the appropriation or fund or in excess of the amount permitted by agency regulations 31 U.S.C.
        (United States Code) 1341(a)(1)(A) and 1517(a).
3
        Known as the “Red Book,” a multivolume treatise concerning Federal fiscal law, it contains text discussion with
        references to specific legal authorities to illustrate legal principles, their applications, and exceptions. Two
        versions of the Red Book covered the transactions reviewed in this memorandum: the Third Edition and the
        Fourth Edition. See appendix C.
4
    `   HUD requires grantees of Community Development Block Grant Disaster Recovery funds to use the DRGR
        system to submit recovery plans and quarterly reports and to draw Disaster Recovery funds.
5
        LOCCS processes grantees’ draw requests from the DRGR system. If approved, LOCCS sends the payment
        requests to the U.S. Treasury, which then transmits the funds to the grantees.



                                                             2
each grant round, and (3) all transaction revisions that occurred a year or more after the initial
transaction for our six grantees.

                                             BACKGROUND

In January 2013, Congress passed the Disaster Relief Appropriations Act, 2013, which awarded
HUD $15.2 billion to provide aid in the recovery from Hurricane Sandy and other disasters. 6
Generally, the Act allowed HUD to award the funds for necessary expenses related to Hurricane
Sandy and other disasters. 7 The 2013 Act required, for the first time, that grantees expend their
funds within 24 months of the date on which HUD obligated the funds to them. 8

CPD OBGA has oversight of the 2013 Act’s disaster recovery funds. OBGA issued Federal
Register notices, which required each grantee to expend all funds within 2 years of the date on
which CPD signed the grant agreement with the grantee. 9 Because of the 24-month expenditure
deadline, OBGA decided to award the Act’s funds in “tranches” or rounds of funding. Rather
than enter into a separate grant for each round of funding, CPD entered into one grant with grant
amendments for each additional round of funding. The six selected grantees and their various
rounds of funding are shown in table 1. 10
Table 1: Grant amounts by grantee, round, and obligation and execution dates
   Grantee and             Grant round              Obligation      Grant execution          Expenditure
     grant no.                                        amount            by CPD                deadline
 Connecticut       Round 1                         $ 15,000,000         8/22/2013             8/22/2015
 B-13-DS-09-0001   Round 2                             15,000,000       6/30/2014             6/30/2016
                   Round 3                              35,000000       12/2/2014             12/2/2016
                   Round 4                              3,000,000       4/20/2015             4/20/2017
                   Round 4, Rebuild by Design 11        2,000,000       3/20/2015             10/1/2022
                   Round 5                             30,000,000       4/18/2016            04/18/2018
                   Round 6                             20,000,000        3/1/2017              3/2/2019
                   Round 7                             39,279,000        9/5/2017              9/5/2019
 Maryland          Round 1                              4,400,000      12/12/2013            12/12/2015
 B-13-DS-24-0001   Round 2                              7,578,000        7/3/2014              7/3/2016
                   Round 3                              1,100,000       12/3/2014             12/3/2016
                   Round 4                              3,140,000      11/12/2015            11/12/2017
                   Round 5                              2,350,000       1/20/2016             1/20/2018
                   Round 6                              4,872,000        3/3/2016              3/3/2018
                   Round 7                                745,000       4/17/2017             4/17/2019
                   Round 8                              4,455,000       8/11/2017             8/11/2019




6
     The amount appropriated by Public Law 113-2 and reduced by sequestration according to the Balanced Budget
     and Emergency Deficit Control Act.
7
     Chapter 9. See appendix C.
8
     Title IX, section 904(c). See appendix C.
9
     See appendix C for excerpts from applicable Federal Register notices.
10
     The six grantees received a majority, not all, of the Act’s funding. See methodology and scope.
11
     Rebuild by Design grants were competitive planning and design Disaster Recovery grants.



                                                       3
   Grantee and           Grant round              Obligation      Grant execution   Expenditure
     grant no.                                      amount           by CPD          deadline
 New Jersey        Round 1                        1,006,236,000      5/13/2013       5/13/2015
 B-13-DS-34-0001   Round 2                          500,000,000      7/29/2014       7/29/2016
                   Round 3, Rebuild by Design       873,809,247       6/1/2015        6/2/2017
                                                    474,990,753       6/1/2015       10/1/2022
                                                     46,700,000       6/1/2015       10/1/2022
                   Round 4                          169,870,320     12/29/2016      12/29/2018
                   Round 5                          769,822,680      6/26/2017       6/26/2019
                                                    333,000,000      6/26/2017       10/1/2022
 New York          Round 1                          640,000,000      5/14/2013       5/15/2015
 B-13-DS-36-0001   Round 2                          803,000,000       1/7/2014        1/7/2016
                   Round 3                          796,000,000       6/9/2015        6/9/2017
                                                      4,000,000       6/9/2015       10/1/2022
                   Round 4                          536,000,000      7/27/2016       7/27/2018
                                                     14,000,000      7/27/2016       10/1/2022
                   Round 5                          486,199,363      1/18/2017       1/18/2019
                                                  1,137,682,637      1/18/2017       10/1/2022
 New York City     Round 1                          425,000,000      8/16/2013       8/16/2015
 B-13-MS-36-0001   Round 2                          986,979,545       6/8/2015        6/8/2017
                                                     13,020,455       6/8/2015       10/1/2022
                   Round 3                          660,000,604     10/23/2015      10/23/2017
                                                     27,999,396     10/23/2015       10/1/2022
                                                     17,000,000     10/23/2015       10/1/2022
                   Round 4                        1,276,358,851      1/19/2017       1/19/2019
                                                    482,537,604      1/19/2017       10/1/2022
                                                    324,979,545      1/19/2017       10/1/2022
 Rhode Island      Round 1                              625,612       9/3/2013        9/3/2015
 B-13-DS-44-0001   Round 2                            2,692,595      7/10/2014       7/10/2016
                   Round 3                            4,050,573      5/12/2015       5/12/2017
                                                      3,204,356      5/12/2015       9/13/2018
                   Round 4                            3,737,945      1/20/2016       1/20/2018
                   Round 5                              347,300      9/12/2016       9/12/2018
                   Round 6                              175,000      4/13/2017       4/13/2019
                   Round 7                            5,077,619       9/6/2017        9/6/2019
 Total                                          13,013,017,000

After CPD executed the initial grant agreement, OCFO entered the original obligation amount
into LOCCS. CPD then entered into grant amendments for each later round of funding, which
added the additional amount provided in each round to the amount previously obligated.
Although the initial grant agreement and various amendments stated that the funds obligated
expired in 2 years, CPD did not enter a grant expiration date on the original grant and grant
amendment forms, and OCFO did not record an expiration date for the grant funds in LOCCS.
Grantees entered detailed transaction vouchers into the DRGR system, which would then request
funds from LOCCS. Grantees were able to edit vouchers in the DRGR system at any point as
long as the grant remained open. OBGA monitored grantees’ activity by reviewing quarterly
performance reports prepared by the grantee, using data maintained in the detailed vouchers in
the DRGR system.



                                                 4
                                         RESULTS OF REVIEW

As of January 19, 2018, two of the six grantees had recorded total expenses in the DRGR system
in excess of what CPD had obligated for a grant round, which totaled more than $160 million.
Five grantees also recorded expenses in the DRGR system before CPD executed a grant round
amendment and after a grant round expired, which totaled more than $435 million. In addition,
four grantees made revisions to completed and revised vouchers totaling more than $496 million
in the DRGR system a year or more after they entered the initial voucher. These issues had a
variety of causes, including (1) systemic weaknesses in the DRGR system, (2) CPD’s entering
into one grant agreement with multiple amendments with multiple deadlines, (3) how CPD and
OCFO treated the grants in LOCCS, (4) a lack of voucher monitoring by OBGA, and (5)
OBGA’s incorrect decisions on how to account for the funds. These expenses appeared to have
been potential ADA and GAAP violations and could potentially have a negative effect on both
HUD’s and the grantees’ financial statements. If OCFO does not require corrections to how it
and CPD account for Disaster Recovery funds, these issues will continue to occur with the
remaining $6.4 billion in 2013 Disaster Recovery funding 12 and the future $35.4 billion for 2017
and 2018 Disaster Recovery funding.
Two Grantees Entered Expenses in Excess of the Grant Round Amendment Amount
As of January 19, 2018, two grantees had reported total grant round expenses in the DRGR
system, which exceeded the amounts CPD had obligated for those grant rounds. We believe this
may be an ADA violation because the ADA prohibited CPD from authorizing its grantees to
make expenditures in excess of the amount funded to them for a grant round according to CPD’s
Federal Register notices. 13 As shown in table 2, the two grantees reported that they had spent
$160 million more than obligated for those three grant rounds.
Table 2: Grantees with DRGR system expenditures that exceeded the approved grant amendment amount as
of January 19, 2018

                     Round       Amount obligated per          DRGR system total
     Grantee          no.       grant round amendment        expenditures by round     Obligation balance
 Maryland                  1             $      4,400,000            $     4,421,353        $        (21,353)
 New York                  2                  803,000,000                803,096,837                 (96,837)
 New York                  4                  550,000,000                710,242,524            (160,242,524)
      Totals                                 1,357,400,000            1,517,760,714             (160,360,714)

Five Grantees Recorded Expenses for a Grant Round Before CPD Executed the Grant
Five grantees entered 168 voucher line item expenses totaling more than $28 million into the
DRGR system and received reimbursement for them, although CPD had not executed a grant
round amendment for that round. We believe this may be an ADA violation because the ADA
prohibited CPD from authorizing its grantees to make expenditures for grants rounds before the
rounds and amounts were funded according to CPD’s Federal Register notices. 14 In addition, the
grantees revised an additional 46 expense transactions totaling more than $26 million, which
were made before a grant round had been executed.

12
     The amount unspent was as of February 1, 2018.
13
     See appendix C.
14
     Ibid.



                                                         5
Table 3: Grantees and their expense transactions entered before grant round execution
                    No. of grant No. of revised         Revised       No. of completed                Completed
                      rounds        transaction       transaction     transaction with               transactions
     Grantee         affected       with errors          totals            errors                        totals
 Connecticut                 2               -                   -                 6                  $ 338,180
 New Jersey                  2               8         $ 220,600                   2                           324
 New York                    3               8           3,825,484                41                   10,553,340
 New York City               2             29           22,733,466               112                   17,546,494
 Rhode Island                2               1               8,255                 7                       38,028
 Totals                     11             46           26,787,805               168                   28,476,366


In some cases, the grantee clearly entered the expense before CPD executed the grant round
agreement. As shown in figure 1, a grantee entered a voucher containing round 3 expenses into
the DRGR system 13 days before CPD executed the grant for round 3.


Figure 1: Timeline of events for voucher 276461


     April 27, 2015                       April 28, 2015                      May 12, 2015

      • Grantee entered                    • Grantee signed                   • CPD executed the
        voucher 276461                       the round 3 grant                  round 3 grant
        into the DRGR                        amendment.                         amendment,
        system, which                                                           which obligated
        contained a line                   • LOCCS paid                         the round 3 funds.
        item expense for                    voucher 276461.
        round 3.




In other cases, the grantee revised a completed voucher after it had been paid by LOCCS and
added one or more line item expenses to the voucher from a later round, which resulted in the
grantee’s recording a later round’s costs to a voucher created in an earlier period. For example,
as shown in figure 2, a grantee added a July 2015 round 3 infrastructure activity expense to
voucher 246330, which was created in January 2014. The grantee entered the original voucher
into DRGR almost 1.5 years before CPD obligated grant round 3. 15




15
     See appendix D for all six revisions made over 3 fiscal years to vouchers 246330.



                                                           6
Figure 2: Timeline of events for voucher 246330



     January 28, 2014              June 9, 2015                July 8, 2015            December 21, 2015
         • LOCCS paid               • CPD executed             • Grantee                    • Grantee
          voucher                    grant round 3.              approved the                 made fifth
          246330.                                                first round 3                revision and
                                                                 expenses for                 added round
                                                                 infrastructure               3 expenses to
                                                                 in the DRGR                  voucher
                                                                 system.                      246330.




Five Grantees Recorded Expenses for a Grant Round After the 24-Month Expenditure
Deadline
Five grantees entered 629 voucher line item expenses totaling more than $334 million into the
DRGR system after the grant round’s expenditure deadline had expired. 16 We believe this may
be a violation of the ADA because the ADA prohibited CPD from authorizing its grantees to
make expenditures after a grant round expired as noted in CPD’s Federal Register notices. 17 In
addition, the grantees revised an additional 55 expense transactions totaling more than $45
million, which were made after a grant round expired.

Table 4: Grantees and their expense transactions entered after a grant round’s deadline
                   No. of grant    No. of revised        Revised        No. of completed            Completed
                     rounds          transaction       transaction      transaction with           transactions
    Grantee          affected        with errors           totals            errors                    totals
 Connecticut                 3                2       $ 285,365                     25            $ 9,098,913
 Maryland                    2                 -                  -                 10                  571,549
 New Jersey                  2               33        17,050,511                  311               57,915,566
 New York                    3               18        27,357,227                  264              245,327,224
 New York City               1                2          1,225,592                  19               21,167,149
 Totals                     11               55        45,918,696 18               629              334,080,401




In some cases, the grantee’s original voucher transaction occurred after the statutory deadline.
As shown in figure 3, LOCCS paid a voucher 9 days after the statutory deadline for one grantee.




16
     Results excluded grant round 2 for New York City; round 3 for New Jersey, New York City, and Rhode Island;
     and round 4 for New York as these rounds had extensions granted. The completed transaction total reported for
     round 3 for New York was reduced by $4 million as it had a $4 million extension granted.
17
     See appendix C.
18
     Total amount was $1 different due to rounding.



                                                         7
Figure 3: Timeline of events for voucher 352240


      April 20, 2015             April 20, 2017               April 28, 2017                     April 29, 2017

         • CPD                     • Statutory                   • Grantee entered                   • LOCCS paid
          executed the              expenditure                    voucher                             voucher
          round 4 grant             deadline date                  352240 into the                     352240.
          amendment,                for round 4.                   DRGR system
          which                                                    with a round 4
          obligated the                                            expense.
          round 4
          funds.




In other cases, the grantee revised a completed voucher, which resulted in its recording an earlier
round’s costs as spent in a later voucher, which was after the earlier round’s 24-month deadline.
As shown in figure 4, a grantee revised a voucher more than a month after it was paid and added
a round that had expired before the original voucher was submitted.

Figure 4: Timeline of expense for voucher 297531



     December 12, 2015                  December 18, 2015                       February 3, 2016

       • Grantee's round                   • LOCCS paid                              • Grantee revised
         1 expired.                         grantee's voucher                          voucher 297531
                                            297531, which                              and charged all
                                            contained one                              of the expense to
                                            round 2 line item.                         expired round 1.




Four Grantees’ Revisions to Completed Vouchers Appeared To Violate Generally
Accepted Accounting Principles
Four of the six Disaster Recovery grantees either entered a new line item expense or revised an
existing line item expense on a paid voucher a year or more after LOCCS paid the original
voucher as shown in table 5. Some grantees entered changes more than 3.5 years after LOCCS
paid the original voucher. None of the new DRGR system line item entries affected LOCCS as
the total amount of the paid voucher did not change. However, GAAP requires that expenses be
recorded in the period in which they are incurred. 19




19
      GAAP’s principle of revenue recognition requires that revenue be recognized when earned, and the matching
      principle requires that expenses be matched with revenues as long as it is reasonable to do so.



                                                          8
Table 5: Grantees made voucher revisions and additions a year or more after the original voucher entry
                                 Total no. of      Revised transaction          Completed
                Grantee          transactions             totals            transactions totals
          Connecticut                     14                          -           $ 8,078,960
          New Jersey                     431               $19,757,874              66,626,524
          New York                       322                26,789,246             257,805,975
          New York City                  284                22,983,735              94,870,921
          Totals                       1,051                69,530,855             427,382,380


The potential ADA and GAAP violations occurred for a variety of reasons. Grantees spent more
than was obligated in a grant round and paid expenses before and after a grant because the
DRGR system had systemic weaknesses. The DRGR system’s weaknesses allowed grantees to
make repeated adjustments to completed and paid transactions months and years after the initial
transaction occurred, including adding projects or rounds that did not exist when the grantee paid
the original voucher or adding expenses for rounds that had expired. In addition, the DRGR
system did not flag or otherwise restrict grantee transactions by round. Although LOCCS has an
expiration term field for grants, CPD’s use of a single grant with many amendments in LOCCS
prevented that field from being used as the grantee’s single grant had multiple rounds, each of
which had its own statutory expenditure deadline. CPD also did not appear to be fully
monitoring the detailed voucher transactions. Although the DRGR system manual stated that
grantees should consult with CPD before making voucher revisions, CPD provided approval
comments on only a few of the voucher line item revisions reviewed. Additionally, CPD
incorrectly allowed grantees to temporarily account for the Disaster Recovery funds in a
cumulative manner and to make transfers between rounds that had overlapping obligation
periods, regardless of the date on which the grantee incurred the costs. Both of these decisions
did not comply with GAAP and GAO’s Principles of Federal Appropriations Law. 20

                                               CONCLUSION

As the Sandy grantees still have more than $6.4 billion in unspent Disaster Recovery funds 21 and
CPD is preparing to award an additional $35.4 billion in Disaster Recovery funds as part of the
Supplemental Appropriations for Disaster Relief Requirements Act, 2017 (2017 Act) and the
Bipartisan Budget Act of 2018 (2018 Act), OCFO needs to promptly take action to determine
whether the identified transactions are ADA and GAAP violations. If OCFO determines that
these transactions are violations, it should take and require CPD to take action to correct the
issues identified for current and future Disaster Recovery grants, take action to correct its
accounting systems data and financial statements, and report the issues as required by the ADA.




20
     GAO’s Principles of Federal Appropriations Law, Third Edition, Volume II, chapters 6 and 10. See also
     appendix C.
21
     The amount unspent was as of February 1, 2018.



                                                        9
                                          RECOMMENDATIONS

We recommend that the Chief Financial Officer

1A. Determine whether the summary expenditures totaling $160,360,714, which exceeded the
    grant round obligations for the two grantees, were ADA violations. If the transactions were
    violations, action should be taken as required by the ADA.

1B. Determine whether the revised and completed detail transactions totaling to $435,263,268, 22
    which occurred before and after grant rounds obligation and expenditure dates, were ADA
    violations. If the transactions were violations, actions should be taken as required by the
    ADA.

1C. Determine whether the revised and completed transactions totaling $496,913,235 23 and
    made more than a year after the original voucher entry were GAAP violations. If the
    transactions were violations, appropriate actions should be taken, including but not limited
    to adjusting the transactions in LOCCS and HUD’s financial statements.

1D. Enter a 24-month expiration term into LOCCS for Disaster Recovery funding provided by
    the 2017 Act and monitor to ensure that expenses are not entered before or after the grant
    period.

We recommend that the Chief Financial Officer require CPD to
1E. Enter into a separate grant agreement for each grantee’s round of disaster funding for
    funding provided by the 2017 and 2018 Acts.

1F. Monitor the detailed voucher transactions in the DRGR system to ensure that grantees
    appropriately record transactions.

1G. Prohibit grantees from revising completed vouchers in the DRGR system and require
    adjustments to be entered as new vouchers into the DRGR system, which will ensure that
    LOCCS records and tracks revisions.




22
     The amount is the total of revised and completed transactions as follows: $26,787,805 + $28,476,366 +
     $45,918,696 + $334,080,401.
23
     The amount is the total of revised and completed transactions as follows: $69,530,855 + $427,382,380.



                                                        10
                                   APPENDIXES

Appendix A

                 SCHEDULE OF QUESTIONED COSTS

                          Recommendation
                                                  Unsupported 1/
                              number
                                1A                   $160,360,714
                                1B                    435,263,268
                                1C                    496,913,235
                               Total                1,092,537,217


1/   Unsupported costs are those costs charged to a HUD-financed or HUD-insured program
     or activity when we cannot determine eligibility at the time of the audit. Unsupported
     costs require a decision by HUD program officials. This decision, in addition to
     obtaining supporting documentation, might involve a legal interpretation or clarification
     of departmental policies and procedures.




                                             11
Appendix B

        AUDITEE COMMENTS AND OIG’S EVALUATION


Ref to OIG Evaluation   Auditee Comments




Comment 1


Comment 1




                          12
                         OIG Evaluation of Auditee Comments

Comment 1   OCFO agreed to open an ADA investigation into the potential ADA and GAAP
            violations. It stated it had to review the underlying transactions and materials
            provided by OIG before it could respond to the specific recommendations. We
            acknowledge OCFO’s response and will coordinate with OCFO to provide any
            additional information needed for it to conduct its review.




                                            13
Appendix C

                                         CRITERIA

The Disaster Relief Appropriations Act, 2013
Title IX, General Provisions - This Division
Section 904(c) Funds for grants provided by this division shall be expended by the grantees
within the 24-month period following the agency’s obligation of funds for the grant, unless, in
accordance with guidance to be issued by the Director of OMB, the Director waives this
requirement for a particular grant program and submits a written justification for such waiver to
the Committees on Appropriations of the House of Representatives and the Senate. In the case
of such grants, the agency shall include a term in the grant that requires the grantee to return to
the agency any funds not expended within the 24-month period.

Chapter 9, Department of Housing and Urban Development, Community Planning and
Development, Community Development Fund
For an additional amount for “Community Development Fund”, $16,000,000,000, to remain
available until September 30, 2017, for necessary expenses related to disaster relief, long-term
recovery, restoration of infrastructure and housing, and economic revitalization in the most
impacted and distressed areas resulting from a major disaster declared pursuant to the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. [United States Code] 5121 et
seq.) due to Hurricane Sandy and other eligible events in calendar years 2011, 2012, and 2013,
for activities authorized under title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.)

Principles of Federal Appropriations Law, Third Edition, Volume II
Chapter 6
Availability of Appropriations: Amount
C. The Antideficiency Act
   1. Introduction and Overview
   … In its current form, the law prohibits:
     • Making or authorizing an expenditure from, or creating or authorizing an obligation
        under, any appropriation or fund in excess of the amount available in the appropriation
        or fund unless authorized by law. 31 U.S.C. § 1341(a)(1)(A)...
     • Making obligations or expenditures in excess of an apportionment or reapportionment, or
        in excess of the amount permitted by agency regulations. 31 U.S.C. § 1517(a)...
   5. Penalties and Reporting Requirements…
     b. Reporting Requirements
     Once it is determined that there has been a violation of 31 U.S.C. § 1341(a), 1342, or
     1517(a), the agency head “shall report immediately to the President and Congress all
     relevant facts and a statement of actions taken.” 31 U.S.C. §§ 1351, 1517(b). Further
     instructions on preparing the reports may be found in OMB Circular No. A-11,
     Preparation, Submission, and Execution of the Budget, § 145 (June 21, 2005). The reports
     are to be signed by the agency head. Id. § 145.7. The report to the President is to be
     forwarded through the Director of OMB. Id.


                                                 14
Chapter 10
Federal Assistance: Grants and Cooperative Agreements
Availability of Appropriations
     b. Time…
     It should be emphasized that the time availability of grant appropriations governs the
     grantor agency’s obligation and expenditure of the funds; it does not limit the time in
     which the grantee must use the funds once it has received them… Of course, the grant
     statute or the grantor agency may impose time limits on a grantee’s use of funds.

Federal Register Notices
78 FR 14329, Issued March 5, 2013
III. Timely Expenditure of Funds and Prevention of Waste, Fraud, Abuse, and Duplication of
Benefits
To ensure the timely expenditure of funds, section 904(c) under Title IX of the Appropriations
Act requires that all funds be expended within two years of the date HUD obligates funds to a
grantee (funds are obligated to a grantee upon HUD’s signing of the grantee’s CDBG-DR
[Community Development Block Grant Disaster Recovery] grant agreement). Action Plans must
demonstrate how funds will be fully expended within two years of obligation. For any funds that
the grantee believes will not be expended by the deadline, it must submit a letter to HUD
justifying why it is necessary to extend the deadline for a specific portion of funds. The letter
must detail the compelling legal, policy, or operational challenges for any such waiver, and must
also identify the date by when the specified portion of funds will be expended. HUD will
forward the request to the Office of Management and Budget (OMB) and publish any approved
waivers in the Federal Register once granted… 24

V. Overview of Grant Process
To begin expenditure of CDBG-DR funds, the following expedited steps are necessary:…
    • Grantee signs and returns the fully executed grant agreement;
    • HUD establishes the proper amount in a line of credit for the grantee;
    • Grantee requests and receives DRGR system access (if the grantee does not already have
       it);
    • If it has not already done so, grantee enters the activities from its published Action Plan
       into DRGR and submits it to HUD within the system (funds can be drawn from the line
       of credit only for activities that are established in DRGR);

VI. Applicable Rules, Statutes, Waivers, and Alternative Requirements
A. Grant Administration.
  1. Action Plan for Disaster Recovery waiver and alternative requirement. The requirements
  for CDBG actions plans, located at 42 U.S.C. 12705(a)(2), 42 U.S.C. 5304(a)(1), 42 U.S.C.
  5304(m), 42 U.S.C. 5306(d)(2)(C)(iii), 24 CFR [Code of Federal Regulations] 91.220, and
  91.320 are waived for funds provided under the Appropriations Act. Instead, each grantee
  must submit to HUD an Action Plan for Disaster Recovery. This streamlined Plan will allow
  grantees to more quickly and effectively implement disaster recovery programs while
  conforming to statutory requirements.

24
     Section III was replaced on May 11, 2015, by section III in 80 FR 26942.



                                                        15
         a. Action Plan. The Action Plan must identify the proposed use(s) of the grantee’s
         allocation, including criteria for eligibility, and how the uses address long-term recovery
         needs. To develop and submit an acceptable Action Plan in a timely manner, a grantee
         may elect to program or budget only a portion of the grantee’s CDBG-DR award in an
         Action Plan….Although a grantee may submit a partial Action Plan, the partial Action Plan
         must be amended one or more times until it describes uses for 100 percent of the grantee’s
         CDBG-DR award, subject to the limitations that HUD may not obligate Appropriations Act
         funds after September 30, 2017 and the last date that grantees may submit an amendment is
         June 1, 2017. The requirement to expend funds within two years of the date of obligation
         will be enforced relative to the activities funded under each obligation, as applicable…. 25
         j. Obligation and expenditure of funds. Upon the Secretary’s certification, HUD will issue
         a grant agreement obligating the funds to the grantee. Only the funds described by the
         grantee in its Action Plan, at the necessary level of detail, will be obligated. In addition,
         HUD will establish the line of credit and the grantee will receive DRGR system access (if it
         does not have access already). The grantee must also enter its Action Plan activities into
         the DRGR system before it may draw funds as described in paragraph A.2, below. 26
         k. Amending the Action Plan. As the grantee finalizes its long-term recovery goals, or as
         needs change through the recovery process, the grantee must amend its Action Plan to
         update its needs assessment, modify or create new activities, or re-program funds, as
         necessary. Each amendment must be highlighted, or otherwise identified, within the
         context of the entire Action Plan. The beginning of every Action Plan amendment must
         include a section that identifies exactly what content is being added, deleted, or changed.
         This section must also include a chart or table that clearly illustrates where funds are
         coming from and where they are moving to. The Action Plan must include a revised
         budget allocation table that reflects the entirety of all funds, as amended.
         If a grantee amends its Action Plan to program additional funds that the Department has
         allocated to it, the grant agreement must also be revised. As stated in paragraph 1.a, the
         requirement for each grantee to expend funds within two years of the date of obligation will
         be enforced relative to the activities funded under each obligation, as applicable… 27
     24. Timely distribution of funds. The provisions at 24 CFR 570.494 and 24 CFR 570.902
     regarding timely distribution of funds are waived and replaced with the alternative
     requirements under this Notice. Section 904(c) of the Appropriations Act requires that all
     funds be expended within two years of the date HUD obligates funds to a grantee. Therefore,
     each grantee must expend all funds within two years of the date its grant agreement with HUD
     is executed. Note that a grant agreement must be amended when the Department allocates
     additional funds to the grantee. As stated in paragraph A.1.a, in this section, the requirement
     for each grantee to expend funds within two years of the date of obligation will be enforced
     relative to the activities funded under each obligation. HUD expects each grantee to
     expeditiously obligate and expend all funds, including any recaptured funds or program



25
      Section VI.A.1.a of 78 FR 14329, issued March 5, 2013, was revised by section II.4 of 81 FR 54114, issued
      August 15, 2016.
26
      Section VI.A1.j of 78 FR 14329, issued March 5, 2013, was revised by section V.1.d.78 FR 76154, issued
      December 16, 2013.
27
      Section VI.A.1.k of 78 FR 14329, issued March 5, 2013, was revised by section VI.3.e of 78 FR 69109, issued
      November 18, 2013, which was later revised by section II.4 of 81 FR 54114, issued August 15, 2016.



                                                         16
     income, and to carry out activities in a timely manner to ensure this deadline is met. See
     sections III and VII of this Notice for additional details on expenditure of funds…

VII. Duration of Funding
The Appropriations Act requires that HUD obligate all funds provided under Chapter 9,
Community Development Fund, not later than September 30, 2017. Concurrently, section 904(c)
of the Appropriations Act requires that all funds be expended within two years of the date HUD
obligates funds. Therefore, each grantee must expend all funds within two years of the date
HUD signs the grant agreement with the grantee. Note that if a grantee amends its Action Plan
to program additional funds that the Department has allocated to it, the grant agreement must
also be revised. As stated in paragraph 1.a, under section VI of this Notice, the requirement for
each grantee to expend funds within two years is triggered by each amendment to the grant
agreement. That is, each grant amendment has its own expenditure deadline…

78 FR 69104, Issued November 18, 2013
III. Timely Expenditure of Funds
The Appropriations Act requires that funds be expended within two years of the date HUD
obligates funds to a grantee and funds are obligated to a grantee upon HUD’s signing of a
grantee’s CDBG-DR grant agreement. In its Action Plan, a grantee must demonstrate how funds
will be fully expended within two years of obligation and HUD must obligate all funds not later
than September 30, 2017. For any funds that the grantee believes will not be expended by the
deadline and that it desires to retain, the grantee must submit a letter to HUD not less than 30
days in advance justifying why it is necessary to extend the deadline for a specific portion of
funds. The letter must detail the compelling legal, policy, or operational challenges for any such
waiver, and must also identify the date by when the specified portion of funds will be expended.
The Office of Management and Budget has provided HUD with authority to act on grantee
waiver requests but grantees are cautioned that such waivers may not be approved. Approved
waivers will be published in the Federal Register… 28

IV. Grant Amendment Process
To access funds allocated by this Notice grantees must submit a substantial Action Plan
Amendment to their approved Action Plan. Any substantial Action Plan Amendment submitted
after the effective date of this Notice is subject to the following requirements:…
    • Grantee signs and returns the grant agreement;
    • HUD signs the grant agreement and revises the grantee’s line of credit amount (this
        triggers the two year expenditure deadline for any funds obligated by this grant
        agreement);

VI. Applicable Rules, Statutes, Waivers, and Alternative Requirements
 3. Action Plan for Disaster Recovery waiver and alternative requirement— Housing, Business
 Assistance, and General Requirements. The Prior Notices are modified as follows:…
   e. Amending the Action Plan. Paragraph 1(k) at 78 FR 14337 of the March 5, 2013 Notice is
   amended, as necessary, to require each grantee to submit a substantial Action Plan
   Amendment to HUD within 120 days of the effective date of this Notice. All Action Plan

28
      Section III was replaced by section III in 80 FR 26942, issued on May 11, 2015.



                                                          17
     Amendments submitted after the effective date of this Notice must be prepared in accordance
     with the Prior Notices, as modified by this Notice. In addition, they must budget all, or a
     portion, of the funds allocated under this Notice. Grantees are reminded that an Action Plan
     may be amended one or more times until it describes uses for 100 percent of the grantee’s
     CDBG-DR award. The last date that grantees may submit an Action Plan Amendment is
     June 1, 2017 given that HUD must obligate all CDBG-DR funds not later than September 30,
     2017. The requirement to expend funds within two years of the date of obligation will be
     enforced relative to the activities funded under each obligation, as applicable... 29

79 FR 62182, Issued October 16, 2014
III. Timely Expenditure of Funds
To ensure the timely expenditure of funds the Appropriations Act requires that funds be
expended within two years of the date HUD obligates funds to a grantee. Funds are obligated to
a grantee upon HUD’s signing of a grantee’s CDBG-DR grant agreement. In its Action Plan, a
grantee must demonstrate how funds will be fully expended within two years of obligation and
HUD must obligate all funds not later than September 30, 2017. For any funds that the grantee
believes will not be expended by the deadline and that it desires to retain, the grantee must
submit a letter to HUD not less than 30 days in advance of the deadline justifying why it is
necessary to extend the deadline for a specific portion of funds. The letter must detail the
compelling legal, policy, or operational challenges necessitating any such waiver, and must also
identify the date by when the specified portion of funds will be expended. The Office of
Management and Budget (OMB) has provided HUD with authority to act on grantee waiver
requests but grantees are cautioned that such waivers may not be approved. If granted, waivers
will be published in the Federal Register. Funds remaining in the grantee’s line of credit at the
time of its expenditure deadlines will be recaptured by HUD… 30

IV. Grant Amendment Process
To access funds allocated by this Notice grantees must submit a substantial Action Plan
Amendment to their approved Action Plan. Submission to and review by HUD must follow the
process outlined below. HUD approves the Amendment according to criteria identified in the
Prior Notices and this Notice…
  • HUD sends an amended unsigned grant agreement with revised grant conditions to the
      grantee; and the grantee signs and returns the amended grant agreement;
  • HUD signs the grant agreement amendment and revises the grantee’s line of credit amount
      (this triggers the two year expenditure deadline for any funds obligated by this amended
      grant agreement) and provides a copy of the executed grant agreement to the grantee;
  • If it has not already done so, grantee enters the activities from its published Action Plan
      Amendment into the Disaster Recovery Grant Reporting (DRGR) system and submits it to
      HUD within the system;…




29
     Section VI.3.e, issued November 18, 2013, was revised by section II.4 of 81 FR 54114, issued August 15, 2016.
30
     Section III was replaced by section III in 80 FR 26942, issued on May 11, 2015.



                                                        18
VII. Applicable Rules, Statutes, Waivers, and Alternative Requirements…
 2. Action Plan for Disaster Recovery Waiver and Alternative Requirements…
     d. Amending the Action Plan.
     Except as otherwise provided for in this Notice, Section VI.A.1.k at 78 FR 14337 of the
     March 5, 2013 Notice is amended, as necessary, to require each grantee to submit a
     substantial Action Plan Amendment to HUD within 120 days of the effective date of this
     Notice. All Action Plan Amendments submitted after the effective date of this Notice must
     be prepared in accordance with the Prior Notices, as modified by this Notice. In addition,
     they must budget all, or a portion, of the funds allocated under this Notice. Grantees are
     reminded that an Action Plan may be amended one or more times until it describes uses for
     100 percent of the grantee’s CDBG-DR award. The last date that grantees may submit an
     Action Plan Amendment is June 1, 2017 given that HUD must obligate all CDBG-DR funds
     not later than September 30, 2017. The requirement to expend funds within two years of the
     date of obligation will be enforced relative to the activities funded under each obligation, as
     applicable… 31

80 FR 26942, Issued May 11, 2015
II. Background
…The Appropriations Act requires HUD to obligate all funds provided under the Appropriations
Act by September 30, 2017. The Appropriations Act also requires that grantees expend funds
within 24 months of the date on which HUD obligates funds to a grantee. Funds are obligated to
a grantee on the date that HUD signs a grantee’s CDBG-DR grant agreement or grant agreement
amendment obligating additional funds. Each obligation carries its own expenditure deadline.
For each obligation to a grantee, any funds remaining in the grantee’s line of credit from that
obligation at the time of the expenditure deadline for that obligation will be returned to the U.S.
Treasury, or if before September 30, 2017, will be recaptured by HUD. In all instances, grantees
must continue to meet the requirements for Federal cash management at 24 CFR 85.20(a)(7), as
may be amended, and therefore may not draw down funds in advance of need to attempt to
comply with the expenditure deadline in accordance with HUD’s long-standing implementation
of this requirement.
Section 904(c) of the Appropriations Act authorizes the Office of Management and Budget
(OMB) to grant waivers of the 24-month expenditure deadline. To implement this provision of
the Appropriations Act, OMB requested Federal agencies receiving an appropriation under the
Appropriations Act to identify categories of activities that could be subject to a waiver of the 24-
month expenditure deadline. OMB also requested that agencies estimate, for each category of
activity, the total amount of funds provided under the Appropriations Act that would likely
require a waiver. HUD submitted an analysis of different categories of CDBG-DR activities that
would likely necessitate a waiver of the expenditure deadline to OMB. OMB authorized HUD to
provide CDBG-DR grantees with expenditure deadline extensions for activities that are
inherently long-term and where it would be impracticable to expend funds within the 24-month
period and still achieve program missions.
Although HUD has authority to grant extensions of the 24-month expenditure deadline up to
amounts approved by OMB for each of the activity categories described in Section III of this
Notice, grantees are advised that 31 U.S.C. 1552(a) continues to apply to funds appropriated
under the Appropriations Act. Specifically, CDBG-DR funds are to remain available for

31
     Section VII.2.d was revised by 81 FR 54114, issued August 15, 2016.



                                                       19
expenditure for five years following the period of availability for obligation. All funds under the
Appropriations Act, including those subject to a waiver of the expenditure deadline, must be
expended by September 30, 2022. Any grant funds that have not been disbursed by September
30, 2022, will be canceled and will no longer be available for disbursement to the grantee for
obligation or expenditure for any purpose…

IV. Timeline for Submission
The process for any funds that the grantee believes will not be expended by the 24-month
expenditure deadline, as outlined in Section III of each of the prior Federal Register Notices
published by HUD on March 5, 2013 (78 FR 14329), May 29, 2013 (78 FR 32262), November
18, 2013 (78 FR 69104), December 16, 2013 (78 FR 76154), June 3, 2014 (79 FR 31964), and
October 16, 2014 (79 FR 62185), is hereby revised as follows:
“The Appropriations Act requires that funds be expended within two years of the date HUD
obligates funds to a grantee; and funds are obligated to a grantee upon HUD’s signing of a
grantee’s CDBG-DR grant agreement. In its Action Plan, a grantee must demonstrate how funds
will be fully expended within two years of obligation and HUD must obligate all funds not later
than September 30, 2017. For any funds that the grantee believes will not be expended by the
24-month deadline and that it desires to retain, the grantee must submit an extension request in a
form acceptable to HUD not less than 120 calendar days in advance of the date of the
expenditure deadline on those funds justifying why it is necessary to extend the deadline for a
specific portion of the funds. In consideration of the timeline for funds with expenditure
deadlines in 2015, extension requests for those funds must be submitted to HUD not less than 60
calendar days in advance of the date of the expenditure deadline on those funds. OMB has
provided HUD with authority to act on grantee extension requests but grantees are cautioned that
such extensions may not be approved. If granted, extensions will be published in the Federal
Register. Funds remaining in the grantee’s line of credit at the time of its expenditure deadlines
will be recaptured by HUD.”

V. Requirements for Submission
Grantees seeking an extension of the 24-month deadline for a project or program must provide
HUD with detailed information on the compelling legal, policy, or operational challenges that
prevent the grantee from meeting the expenditure deadline as well as identify the proposed date
for the full expenditure of the specified portion of funds.
To expedite the review process, HUD has developed a CDBG-DR Expenditure Deadline
Extension Request template. Grantees must submit one template per program or project for
which a revised expenditure deadline is being requested. In certain cases, HUD may request that
a grantee resubmit this template at a project-level if information provided at the programmatic
level is insufficient for HUD to assess whether the request meets HUD’s criteria for approving
an extension, as outlined in Section VII below. This template will ensure that each request
captures all of the requirements outlined in this Notice. The template will be posted at:
https://www.hudexchange.info/cdbg-dr/. Each grantee must include the following elements, as
delineated within the CDBG-DR Expenditure Deadline Extension Request template, as part of its
submission:
    (1) A description of the individual program or project for which an extension is being
    requested, including information on relevant Disaster Recovery Grant Reporting System
    (DRGR) activity(ies).



                                                20
   (2) An explanation for why an extension is being requested, including all relevant and
   compelling statutory, regulatory, policy, or operational challenges, and how the extension
   will promote a more effective and efficient recovery effort.
   (3) Description of how the provision of an extension would reduce the likelihood of waste,
   fraud, and abuse, if applicable.
   (4) An identification of all community stakeholders (including state or local entities, sub-
   recipients, nonprofits, and civic organizations) to be affected by the expenditure deadline
   extension, their role in program or project implementation, and the impact, if any, of the
   extension on these stakeholders.
   (5) A revised expenditure deadline for the CDBG-DR funds budgeted for the program or
   project (i.e. the DRGR ‘end date’) as well as a projection of quarterly expenditures for the
   program or project for which the waiver is requested, including incremental dollar amounts
   and percentage of funds budgeted for each DRGR activity. This information is required in
   order for HUD to ensure grantee compliance with revised expenditure deadlines in the DRGR
   system.
   (6) A description of the risks associated with not receiving the requested extension, such as
   the estimated percentage of funds which would be at risk of recapture or specific recovery
   needs that would not be met if the particular program or project cannot be completed or
   undertaken.
   (7) A description of the monitoring process and internal controls that the grantee and any sub-
   recipients will implement to ensure compliance with the revised expenditure deadline.

VI. Submission Process
The submission of any grantee expenditure deadline extension request is subject to the following
requirements:
    • Grantee submits the completed CDBG-DR Expenditure Deadline Extension Request
    template and any attachments to HUD in order to request consideration of the extension
    request not less than 120 calendar days in advance of the expenditure deadline on the funds
    (or 60 days for funds expiring in calendar year 2015).
    • HUD reviews the extension request within 45 (or sooner for funds expiring in calendar year
    2015) calendar days from date of receipt and approves the request based on the parameters
    outlined in Section VII of this Notice.
    • HUD sends an extension request approval letter to the grantee. HUD may disapprove the
    request if it is determined that it does not meet the requirements of this Notice. If the request
    is not approved, a letter will be sent identifying its deficiencies; the grantee must then re-
    submit the request within 30 calendar days (or 10 days for funds expiring in the calendar year
    2015) of the notification letter;
    • Within 30 calendar days of HUD’s approval, the grantee amends its Action Plan for disaster
    recovery to reflect the approval of the revised expenditure deadline. HUD considers any
    Action Plan amendments to reflect revised activity expenditure timelines to be non-
    substantial amendments.
    • Immediately following this amendment, the grantee updates its DRGR Action Plan to
    reflect the revised ‘end date’ for each DRGR activity covered by the approved waiver.
    • If approved, HUD will publish the extension approval in the Federal Register. HUD will
    consolidate grantee extension approvals for publication. Therefore, extension approval is




                                                 21
   effective as of the date of the extension request approval letter, rather than as of the effective
   date of the published Federal Register notice.

VII. Criteria for Approval
Under the authority provided to HUD by OMB, HUD will consider expenditure deadline
extension requests for projects or programs based on the Secretary’s determination that the
extension is necessary and that the request meets the conditions set forth by OMB. HUD will
assess extension requests using the following criteria:
   (1) The program or project must be approved in the grantee’s Action Plan for disaster
   recovery prior to the grantee’s submission of an expenditure deadline extension request to
   HUD.
   (2) The CDBG-DR funds associated with the program or project must have been obligated by
   HUD through a grant agreement, and, therefore, be subject to an established expenditure
   deadline.
   (3) The information submitted on the CDBG-DR Expenditure Deadline Extension Request
   template is comprehensive and complete to the satisfaction of HUD, as outlined in Section V
   of this Notice.
   (4) The revised expenditure deadline for the CDBG-DR funds budgeted for the program or
   project (i.e. the DRGR ‘end date’) as well as the projection of quarterly expenditures are
   determined to be achievable based on the grantee’s past performance and expenditure rate.
   (5) The grantee’s capacity to implement monitoring processes and internal controls as
   outlined by the grantee in the template are sufficient to ensure compliance with the revised
   expenditure deadline.
   (6) The grantee has demonstrated that it has evaluated all reasonable alternatives prior to
   determining that an extension is the only remaining viable alternative.
   (7) HUD can determine, based on the grantee’s submission, that the program or project
   covered by the request satisfies the OMB criteria for activities that are long-term by design,
   where it is impracticable to expend funds within the 24-month period and achieve program
   missions, and any other criteria imposed by OMB.
Regardless of the criteria outlined in this section, HUD retains the authority to deny requested
extensions or to provide alternative expenditure deadlines to those proposed by grantees.

VIII. Applicable Rules and Considerations…
   2. Expenditure deadline extensions are program- and project-specific. Any revised
   expenditure deadline is specific to the program or project as identified in the approval letter
   from HUD. Grantees may not reallocate funds with a revised expenditure deadline to other
   recovery programs or projects without HUD authorization. In order to reallocate such funds,
   the grantee must request an additional extension through the process described in Section VI
   of this Notice. Grant balances not used for a program or project that receives an expenditure
   deadline waiver will be canceled if the expenditure deadline on those funds has passed.




                                                 22
81 FR 7567, Issued February 12, 2016
II. Applicable Rules (Including Clarifying Guidance), Statutes, Waivers, and Alternative
Requirements
…1. Timeline for the submission of expenditure deadline extension requests. The
Appropriations Act requires the Department to obligate all funds provided under the
Appropriations Act by September 30, 2017, and requires grantees to expend funds within 24-
months of the date on which the Department obligates funds to a grantee. The Appropriations
Act also authorizes the Office of Management and Budget (OMB) to grant waivers of the 24-
month expenditure deadline. OMB authorized the Department to provide CDBG-DR grantees
with expenditure deadline extensions for activities that are inherently long-term and where it
would be impracticable to expend funds within the 24-month period and still achieve program
missions, up to amounts approved by OMB. In the Federal Register notice published on May
11, 2015, (80 FR 26942), the Department established the process and criteria for the submission
of expenditure deadline extension requests for CDBG-DR grantees in receipt of funds under the
Appropriations Act. The May 11, 2015, notice requires these grantees to submit requests for the
extension of an expenditure deadline at least 120 calendar days in advance of the expenditure
deadline (80 FR 26944). Since the May 11, 2015, notice was published, the Department
subsequently received, reviewed, and acted upon expenditure deadline extension requests from a
number of CDBG-DR grantees in receipt of funds under the Appropriations Act. In some
instances, the Department observed that events and circumstances beyond the control of the
grantee may require grantees to request an extension of an expenditure deadline after the 120-
calendar-day deadline has passed. The Department is therefore amending this requirement of the
May 11, 2015, notice to provide that a grantee “submits the completed CDBG-DR Expenditure
Deadline Extension Request template and any attachments to HUD in order to request
consideration of the extension request at least 120 calendar days in advance of the expenditure
deadline on the funds (or 60 days for funds expiring in calendar year 2015). HUD may,
however, also accept requests from CDBG-DR grantees for the extension of an expenditure
deadline less than 120 calendar days in advance of the deadline upon receipt of a letter from the
chief executive officer of the grantee requesting the extension and a demonstration by the grantee
that the request is required in order to achieve program missions. Grantees are advised however,
that time constraints may not permit HUD to act upon requests that are received in close
proximity to an expenditure deadline.”
2. Urgent need national objective certification requirements. The March 5, 2013, notice (78 FR
14329) provided grantees receiving funds under the Appropriations Act with a waiver of the
certification requirements for the documentation of the urgent need national objective, located at
§§ 570.208(c) and 570.483(d), until 2 years after the date the Department obligates funds to a
grantee. The May 11, 2015, notice allowed grantees seeking a waiver of an expenditure deadline
to simultaneously seek an extension of the urgent need certification waiver. The extension of the
urgent need certification waiver, however, is currently only effective after its publication in the
Federal Register. This approach presents challenges for CDBG-DR grantees who receive an
extension of an expenditure deadline for an activity associated with the urgent need certification,
with the extended expenditure deadline in effect but with the urgent need certification waiver
still requiring publication in the Federal Register.
To accommodate the timely expenditure of funds, HUD is modifying the temporary, streamlined
urgent need waiver and alternative requirement in paragraph VI.A.1.f. of the March 5, 2013,
notice (78 FR 14336). This waiver and alternative requirement supersedes the information



                                                23
published in the May 11, 2015, notice and will allow grantees to more effectively implement
urgent recovery activities by aligning the applicable urgent need national objective criteria with
the expenditure deadline on the use of funds. The March 5, 2013, notice is modified to add the
following alternative requirement for grantees that receive an extension of the expenditure
deadline: For activities designed to respond to a disaster-related impact that poses a serious and
immediate threat to the health or welfare of the community, the grantee may continue to use the
urgent need national objective until the end of the new expenditure deadline if the grantee meets
the following requirements from the March 5, 2013, notice: (1) Before seeking the expenditure
deadline extension, the grantee must reference in its Action Plan the type, scale, and location of
the disaster-related impacts addressed by each program and/or activity that will meet the urgent
need national objective; (2) before seeking the expenditure deadline extension, the grantee must
identify these disaster related impacts in its Action Plan needs assessment; (3) the needs
assessment must be updated as new or more detailed/accurate disaster-related impacts are
known; and (4) the grantee must document how all programs and/or activities funded under the
urgent need national objective respond to a disaster-related impact identified by the grantee…

81 FR 54114, Issued August 15, 2016
II. Applicable Rules, Statutes, Waivers, and Alternative Requirements
    4. Submission of a Final Action Plan Amendment for Disaster Recovery. HUD is modifying
    the language in paragraph VI.A.1.a of the March 5, 2013, Federal Register notice regarding
    the submission of Action Plan amendments after June 1, 2017. The March 5, 2013, notice
    does not currently allow grantees to submit Action Plan amendments after June 1, 2017.
    While grantees must program the use of 100 percent of their allocated funds by June 1 in an
    approved Action Plan, HUD realizes that grantees will continue to need the flexibility of
    making both substantial and non-substantial Action Plan amendments as their programs
    continue to move forward and evolve after the June 1 deadline.
    Accordingly, HUD is amending this language to allow grantees to submit Action Plan
    amendments after June 1, 2017. Subparagraph a of section VI.A.1 of the March 5, 2013,
    notice, as amended by the April 19, 2013, notice, is amended further to read:
    Although a grantee may submit a partial Action Plan, the partial Action Plan must be
    amended one or more times until it describes uses for 100 percent of the grantee’s CDBG-
    DR award. Due to the statutory requirement that HUD may not obligate Appropriations Act
    funds after September 30, 2017, grantees must submit an Action Plan amendment to HUD
    that provides for the allocation of 100 percent of its CDBG-DR funds for its recovery
    programs no later than June 1, 2017.
    Grantees may continue to submit Action Plan amendments after that date. The requirement,
    however, to expend funds within 2 years of the date of obligation will continue to be enforced
    relative to each partial obligation made by HUD, as applicable.
    HUD is also similarly modifying paragraph VI.3.e of the November 18, 2013, Federal
    Register notice (78 FR 69109) to read:
       e. Amending the Action Plan. Paragraph 1(k) at 78 FR 14337 of the March 5, 2013, notice
       is amended, as necessary, to require each grantee to submit a substantial Action Plan
       amendment to HUD within 120 days of the effective date of this notice. All Action Plan
       amendments submitted after the effective date of this notice must be prepared in
       accordance with the prior notices, as modified by this notice. In addition, they must budget
       all, or a portion, of the funds allocated under this notice. Grantees are reminded that an



                                                24
     Action Plan may be amended one or more times until it describes uses for 100 percent of
     the grantee’s CDBG-DR award. The last date by which grantees must submit the Action
     Plan amendment that provides for the allocation of 100 percent of its funds for its recovery
     programs is June 1, 2017, given that HUD must obligate all CDBG-DR funds no later than
     September 30, 2017. Grantees may continue to submit Action Plan amendments after that
     date. The requirement, however, to expend funds within 2 years of the date of obligation
     will continue to be enforced relative to each partial obligation made by HUD.
     Paragraph V.4(d) of the June 3, 2014, Federal Register notice (79 FR 31969), is also
     modified to read:
     d. Amending the Action Plan. The prior notices are amended, as necessary, to require
     each grantee to submit a substantial Action Plan amendment to HUD within 120 days of
     the effective date of this notice. All Action Plan amendments submitted after the effective
     date of this notice must be prepared in accordance with the prior notices, as modified by
     this notice. In addition, they must budget all, or a portion, of the funds allocated under this
     notice. Grantees are reminded that an Action Plan may be amended one or more times
     until it describes uses for 100 percent of the grantee’s CDBG-DR award. The last date by
     which grantees must submit the Action Plan amendment that provides for the allocation of
     100 percent of its funds for its recovery programs is June 1, 2017, given that HUD must
     obligate all CDBG-DR funds not later than September 30, 2017. Grantees may continue to
     submit Action Plan amendments after that date. The requirement, however, to expend
     funds within 2 years of the date of obligation will continue to be enforced relative to each
     partial obligation made by HUD.
   Finally, paragraph VII.2.d of the October 16, 2014, Federal Register notice (79 FR 62191) is
   modified to read:
     d. Amending the Action Plan. Except as otherwise provided for in this notice, paragraph
     VI.A.1.k of the March 5, 2013 notice (at 78 FR 14337) is amended, as necessary, to require
     each grantee to submit a substantial Action Plan amendment to HUD within 120 days of
     the effective date of this notice. All Action Plan amendments submitted after the effective
     date of this notice must be prepared in accordance with the prior notices, as modified by
     this notice. In addition, they must budget all, or a portion, of the funds allocated under this
     notice. Grantees are reminded that an Action Plan may be amended one or more times
     until it describes uses for 100 percent of the grantee’s CDBG-DR award. The last date for
     grantees to submit the Action Plan amendment that provides for the allocation of 100
     percent of its funds for its recovery programs is June 1, 2017, given that HUD must
     obligate all CDBG-DR funds not later than September 30, 2017. Grantees may continue to
     submit Action Plan amendments after that date. The requirement, however, to expend
     funds within 2 years of the date of obligation will continue to be enforced relative to each
     partial obligation made by HUD.

Language From CPD’s Funding Approval/Agreement
HUD Form 7082
Grant Agreement: This Grant Agreement between the Department of Housing and Urban
Development (HUD) and the above named Grantee is made pursuant to the authority of Title I
of the Housing and Community Development Act of 1974, as amended, (42 USC 5301 et seq.).
The Grantee’s submissions for Title l assistance, the HUD regulations at 24 CFR Part 570 (as
now in effect and as may be amended from time to time), and this Funding Approval,



                                                25
including any special conditions/addendums, constitute part of the Agreement. Subject to the
provisions of this Grant Agreement, HUD will make the funding assistance specified here
available to the Grantee upon execution of the Agreement by the parties. The funding
assistance specified in the Funding Approval may be used to pay costs incurred after the date
specified in item 4 above provided the activities to which such costs are related are carried out
in compliance with all applicable requirements. Pre-agreement costs may not be paid with
funding assistance specified here unless they are authorized in HUD regulations or approved
by waiver and listed in the special conditions to the Funding Approval. The Grantee agrees to
assume all of the responsibilities for environmental review, decision making, and actions, as
specified and required in regulations issued by the Secretary pursuant to Section 104(g) of
Title 1 and published in 24 CFR Part 58. The Grantee further acknowledges its responsibility
for adherence to the Agreement by sub-recipient entities to which it makes funding assistance
hereunder available.

2013 Addendum:…
2. The grantee is required to expend the funds obligated in the grant agreement within two years
   of the date of the obligation. If the grantee’s two year expenditure deadline occurs prior to
   September 30, 2017, unexpended funds will be returned to the Department and may be
   reallocated. After September 30, 2017, any unexpended funds will be returned to the U.S.
   Treasury.
   …
7. This grant agreement covers a total amount $[amount awarded]. The funds may be used for
   the activities described in the attached table and as provided in the Action Plan. Subsequent
   amendments to this grant agreement will obligate additional funds towards the State’s full
   grant amount of $[total amount awarded]. The grantee may request additional funds by
   submitting its amended action plan to the Department.

2014 Addendum:…
2. The grantee is required to expend the funds obligated in the grant agreement within two
   years of the date of the obligation. If the grantee’s two year expenditure deadline occurs
   prior to September 30, 2017, unexpended funds will be returned to the Department and may
   be reallocated. After September 30, 2017, any unexpended funds will be returned to the
   U.S. Treasury. Funds previously obligated under this Grant Agreement and additional
   funds now obligated under this Grant Agreement must be expended by two-years from the
   date on which the Department signed the agreement to obligate the respective funds.
   …
8. This grant agreement covers a total amount of $[amount awarded]. The funds may be used in
   the amounts listed and activities described in the attached table below and as provided in the
   Action Plan, as amended. The grant terms and conditions have been amended to adjust
   funding levels and activities described in the table below. The grantee may request that the
   Department amend the grant terms and conditions to adjust funding levels and activities
   described in the table below and may not adjust those levels or activities until receiving
   amended grant terms and conditions. Substantial amendments are subject to the additional
   requirements of the applicable CDBG-DR Notices. Subsequent amendments to this grant
   agreement will obligate additional funds towards the State’s full grant amount of $[total




                                                 26
   amount awarded]. The grantee may request additional funds by submitting its amended
   action plan to the Department

2015 Addendum:…
2. The grantee is required to expend the funds obligated in the grant agreement within two
   years of the date of the obligation. If the grantee’s two year expenditure deadline occurs
   prior to September 30, 2017, unexpended funds will be returned to the Department and may
   be reallocated. After September 30, 2017, any unexpended funds will be returned to the
   U.S. Treasury. Funds previously obligated under this Grant Agreement and additional
   funds now obligated under this Grant Agreement must be expended by two-years from the
   date on which the Department signed the agreement to obligate the respective funds.
   …
8. This grant agreement covers a total amount of $[amount awarded]. The funds may be used
   in the amounts listed and activities described in the attached table and as provided in the
   Action Plan, as amended. The grant terms and conditions have been amended to adjust
   funding levels and activities described in the table below. The grantee may request that the
   Department amend the grant terms and conditions to adjust funding levels and activities
   described in the table below and may not adjust those levels or activities until receiving
   amended grant terms and conditions. Substantial amendments are subject to the additional
   requirements of the applicable CDBG-DR Notices. Subsequent amendments to this grant
   agreement will obligate additional funds towards the State’s full grant amount of $[total
   amount awarded]. The grantee may request additional funds by submitting its amended
   action plan to the Department.

2016 Addendum:…
2. The grantee is required to expend the funds obligated in the grant agreement within two
   years of the date of the obligation. If the grantee’s two year expenditure deadline occurs
   prior to September 30, 2017, unexpended funds will be returned to the Department and may
   be reallocated. After September 30, 2017, any unexpended funds will be returned to the
   U.S. Treasury. Funds previously obligated under this Grant Agreement and additional
   funds now obligated under this Grant Agreement must be expended by within years from
   the date on which the Department signed the agreement to obligate the respective funds.
   …
8. This grant agreement covers a total of [grant amount]. The funds may be used in the
   amounts listed and activities described in the table below and as provided in the Action Plan,
   as amended. The grant terms and conditions have been amended to adjust funding levels
   and activities described in the table below. The grantee may request that the Department
   amend the grant terms and conditions to adjust funding levels and activities described in the
   table below and may not adjust those levels or activities until receiving amended grant terms
   and conditions. Substantial amendments are subject to the additional requirements of the
   applicable CDBG-DR Notices. Subsequent amendments to this grant agreement will
   obligate additional funds towards the State full grant amount of [total grant amount]. The
   grantee may request additional funds by submitting its amended action plan to the
   Department.




                                                27
HUD HANDBOOK 1830.2, REV-6, Administrative Control of Funds Policies
Chapter 12, RESPONDING TO ANTIDEFICIENCY ACT VIOLATIONS…

12-3 REPORTING REQUIREMENTS OF THE ACT.
HUD’s Fiscal Year (FY) 2003 Appropriations Act provided that, notwithstanding any other
provision of law, hereafter, HUD’s CFO [Chief Financial Officer] shall, in consultation with the
OCFO Budget Officer, have sole authority to investigate potential or actual violations of the
Antideficiency Act and all other statutes and regulations related to the obligation and expenditure
of funds in this or any other Acts; shall determine whether violations exist; and shall submit final
reports on violations to the Secretary, the President, the OMB [Office of Management and
Budget], and the Congress [and the Comptroller General] in accordance with applicable statutes
and OMB circulars.

12-5 ADA INVESTIGATIVE PROCESS.
HUD’s process for the disclosure, review, reporting, and action on potential and actual violations
is as follows:…
               Notification to OCFO of Possible Violations. Early reporting of any potential
               violation of the Antideficiency Act can help avoid or curtail an actual violation
               and is, therefore, an important element of the administrative control of funds.
               Any HUD employee having knowledge of a possible Antideficiency Act violation
               must immediately notify the ALS [Appropriations Law staff] in the OCFO about
               the activity in question. The employee should provide information and
               documentation that supports the belief that a possible Antideficiency Act violation
               exists. …
               Review to Determine Whether an Antideficiency Act Violation Occurred. ALS
               will review, gather additional information, and make an assessment regarding if
               an Antideficiency Act occurred.
               Assessment of No Violation. If the assessment determines that no violation
               occurred, ALS will document in the file that an Antideficiency Act violation was
               alleged but not found, along with the basis for the determination. However, when
               opportunities for improvements in funds control and internal control processes are
               identified, if appropriate, recommendations will be forwarded to applicable
               program areas for review and approval. Once approved, the necessary control
               improvements shall be implemented.
               Assessment that a Violation Occurred. If the review determines that a violation
               did occur, ALS will prepare a draft report from the CFO, based on the
               requirements of OMB Circular A-11, Section 145.7. In addition, and in
               consultation and coordination with the CFO, ALS will take the following actions:
               a. The named offices and officials viewed as responsible for the violation will
                    be provided with an opportunity to review the draft report and provide
                    comments that may impact the final report of the investigation.
               b. The allotment holder, program leadership, and supervisors of those viewed as
                    responsible for the violation will recommend appropriate disciplinary actions,
                    if any, and provide such recommendation to ALS for inclusion in the report.
                    This recommendation will be considered by the OCFO in preparing the final
                    report. If the review determines that a violation did occur and that possible



                                                28
                   criminal activity is suspected, the OCFO will refer such activity to the Office
                   of the Inspector General (OIG) for investigation. ALS will carefully proceed
                   with the actions described above, as appropriate and in coordination with the
                   OIG.
              c. A copy of the draft report will be provided to the offices of the Secretary,
                   Deputy Secretary, and General Counsel, with a courtesy copy to the affected
                   allotment holder(s), to allow them an opportunity to review and provide
                   comments.
              d. The draft report will be sent to OMB for review.
              e. After OMB review, the report will be submitted to Departmental leadership
                   for final review.
              Final Report. As provided in the FY 2003 Appropriations Act, the CFO will
              submit a final report on an Antideficiency Act violation to the Secretary, the
              President, the OMB, and the Congress in accordance with applicable statutes and
              OMB circulars. On the same date, OCFO will provide GAO, the allotment
              holder, the Deputy Secretary, the General Counsel, and any other appropriate
              officials with a copy of the final report.

12-6 PENALTIES AND CORRECTIVE ACTIONS.
Based on the final report provided to the Secretary, the President, the OMB, and the Congress
[and the GAO], the Department will impose any recommended penalties and implement all
corrective actions identified to prevent the recurrence of this type of violation.




                                               29
Appendix D

                                       Grantee Voucher 246330


     Grantee     LOCCS         LOCCS
     approval    submit      transaction
       date       date          date        Project number         Activity number      Revised      Completed
                                                    Original voucher
     1/22/2014   1/27/2014     1/28/2014   R1-Single Family      R1-HSG-UN
                                           Housing                                                   $ 7,226,388
     1/22/2014   1/27/2014     1/28/2014   R2-Single Family      R2-HSG-LMI
                                           Housing                                                    38,377,388
     1/22/2014   1/27/2014     1/28/2014   R2-Single Family      R2-HSG-UN
                                           Housing                                                    30,312,059
                                                      First revision
      3/3/2014   1/27/2014     1/28/2014   R2-Single Family        R2-HSG-LMI
                                           Housing                                     $38,377,388
      3/3/2014   1/27/2014     1/28/2014   R2-Single Family        R2-HSG-LMI
                                           Housing                                                    30,180,962
      3/3/2014   1/27/2014     1/28/2014   R2-Buyout               R2-BOH-AQU-UN-A                       198,577
      3/3/2014   1/27/2014     1/28/2014   R1-SmBusiness           R1-SBJ-UN-A                          385,567
      3/3/2014   1/27/2014     1/28/2014   R1-SmBusiness           R1-SBR-PLANNING A                    385,567
      3/3/2014   1/27/2014     1/28/2014   R2-ComRecon             R2-CR-Plan                          2,068,506
      3/3/2014   1/27/2014     1/28/2014   R2-Buyout               R2-BOH-AQU-UN-B                      198,577
      3/3/2014   1/27/2014     1/28/2014   R1-SmBusiness           R1-SBJ-UN-B                          385,567
      3/3/2014   1/27/2014     1/28/2014   R1-SmBusiness           R1-SBR-PLANNING B                    385,567
      3/3/2014   1/27/2014     1/28/2014   R1-Admin                R1-Admin                          4,188,499 32
      3/3/2014   1/27/2014     1/28/2014   R1-Admin                R1-Admin              4,188,499
      3/3/2014   1/27/2014     1/28/2014   R2-Single Family        R2-HSG-LMI
                                           Housing                                                     4,188,499
      3/3/2014   1/27/2014     1/28/2014   R2-Single Family        R2-HSG-UN
                                           Housing                                      30,312,059
      3/3/2014   1/27/2014     1/28/2014   R2-Single Family        R2-HSG-UN
                                           Housing                                                    26,123,560
      3/3/2014   1/27/2014     1/28/2014   R1-Admin                R1-Admin                            4,188,499
      3/3/2014   1/27/2014     1/28/2014   R2-Single Family        R2-HSG-LMI           30,180,962
                                           Housing
      3/3/2014   1/27/2014     1/28/2014   R2-Single Family        R2-HSG-LMI
                                           Housing                                                    29,128,058
      3/3/2014   1/27/2014     1/28/2014   R2-Buyout               R2-HSG-UN                           1,052,904
                                                    Second revision
 09/23/2014      1/27/2014    01/28/2014   R1-Admin                R1-Admin              4,188,499
 09/23/2014      1/27/2014    01/28/2014   R2-Admin                R2-Admin                            4,188,499


32
       Total of revised versus completed was $1 different due to rounding.



                                                              30
     Grantee     LOCCS         LOCCS
     approval    submit      transaction
       date       date          date        Project number         Activity number   Revised     Completed
                                                     Third revision
     5/13/2015   1/27/2014     1/28/2014   R1-SmBusiness         R1-SBJ-UN-B           385,567
     5/13/2015   1/27/2014     1/28/2014   R1-SmBusiness         R1-SBJ-UN-B                        215,917
     5/13/2015   1/27/2014     1/28/2014   R2-SmBusiness         R2-SBJ-UN-A                       169,649 33
                                                    Fourth revision
     5/14/2015   1/27/2014     1/28/2014   R1-SmBusiness         R1-SBR-PLANNING A     385,567
     5/14/2015   1/27/2014     1/28/2014   R2-SmBusiness         R2-SBJ-UN-A                        385,567
     5/14/2015   1/27/2014     1/28/2014   R1-SmBusiness         R1-SBR-PLANNING B     385,567
     5/14/2015   1/27/2014     1/28/2014   R2-SmBusiness         R2-SBJ-UN-A                        385,567
     5/14/2015   1/27/2014     1/28/2014   R2-SmBusiness         R2-SBJ-UN-A           169,649
     5/14/2015   1/27/2014     1/28/2014   R1-SmBusiness         R1-SBJ-UN-A                        169,649
     5/14/2015   1/27/2014     1/28/2014   R2-SmBusiness         R2-SBJ-UN-A           385,567
     5/14/2015   1/27/2014     1/28/2014   R1-SmBusiness         R1-SBJ-UN-A                        385,567
     5/14/2015   1/27/2014     1/28/2014   R2-SmBusiness         R2-SBJ-UN-A           385,567
     5/14/2015   1/27/2014     1/28/2014   R1-SmBusiness         R1-SBJ-UN-A                        385,567
                                                      Fifth revision
 12/21/2015      1/27/2014    12/21/2015   R2-Admin              R2-Admin            4,188,499
 12/21/2015      1/27/2014    12/21/2015   R2-Admin              R2-Admin                          1,968,909
 12/21/2015      1/27/2014    12/21/2015   R3-INFRA              R3-INFRA-Plan                     2,219,590
                                                      Sixth revision
     9/27/2016   1/27/2014     9/27/2016   R1-SmBusiness         R1-SBJ-UN-A           385,567
     9/27/2016   1/27/2014     9/27/2016   R1-SmBusiness         R1-SBJ-MICRO-LMI                   385,567
     9/27/2016   1/27/2014     9/27/2016   R1-SmBusiness         R1-SBJ-UN-A           385,567
     9/27/2016   1/27/2014     9/27/2016   R1-SmBusiness         R1-SBJ-MICRO-LMI                   385,567
     9/27/2016   1/27/2014     9/27/2016   R1-SmBusiness         R1-SBJ-UN-A           385,567
     9/27/2016   1/27/2014     9/27/2016   R1-SmBusiness         R1-SBJ-MICRO-LMI                   385,567
     9/27/2016   1/27/2014     9/27/2016   R1-SmBusiness         R1-SBJ-UN-A           169,649
     9/27/2016   1/27/2014     9/27/2016   R1-SmBusiness         R1-SBJ-MICRO-LMI                   169,649
     9/27/2016   1/27/2014     9/27/2016   R1-SmBusiness         R1-SBJ-UN-B           215,917
     9/27/2016   1/27/2014     9/27/2016   R1-SmBusiness         R1-SBJ-MICRO-LMI                   215,917




33
       Ibid.



                                                            31