CDBG Entitlement FAQ

Why do I see negative balances under Activity #2 on my PR02 report?

Date Published: March 2019

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If there are balances under Activity #2, positive or negative, log into IDIS and search vouchers for Activity #2.

Activity #2 is essentially the repository for CDBG funds adjustments. For example, when a grantee returns funds to its line of credit due to ineligible uses of CDBG grant funds for CDBG activities, those returned funds show up in Activity #2 as a negative draw (collection), and the grantee then transfers those funds to the original activity to repay that activity for the ineligible expenses. Also, when a grantee misses its Section 108 scheduled loan repayment, HUD deducts the repayment from its line of credit and posts it as a draw voucher (Manual Payment) under Activity #2.

When a grantee sees a negative balance under Activity #2 (that is, when the amount of draws is greater than the amount of negative draws), it often indicates that Section 108 Guaranteed Loan repayments have been deducted by HUD. In this case, the Manual Payment vouchers to the actual Section 108 repayment activities require revision. (See Question #1 for instructions on completing this process.)

When you see a positive balance, it often means the grantee has returned funds to its line of credit and needs to transfer all returned funds to their original activities. Chapter 18 of the IDIS Online Training Manual, Grant Repayments, provides instructions for the grantee when returning funds to its line of credit. These instructions include the use of Activity #2.

Tags: CDBG Entitlement Program IDIS

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