Audit 320180

Federal Program: CDBG-Entitlement Grants Cluster, AL 14.218 Criteria: The requirements of 2CFRPart170 Appendix A states that direct recipients of grants or cooperative agreements are required to report first-tier subawards of $50,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Report System (FSRS) by the end of the following month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000. Condition: During the audit, we noted reporting of subaward information to FSRS was not performed within the required timeframe. Cause: The City did not have controls in place to ensure FSRS reporting was completed in the required timeframe. Identification as a Repeat Finding: This is a repeat finding. Listed as 2022-002 in prior year single audit report. Effect: The City could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two subrecipient agreements entered within the fiscal year under audit were selected to review FSRS submissions. This accounted for $32,405 of federal expenditures. Recommendation: We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response: See corrective action plan.

Federal Program: American Rescue Plan Act (ARPA), AL 21.027 Criteria: Per CFR 536.270-4 – Contractors are not to be listed in the System for Award Management Exclusions. Condition: During the audit, we noted that vendor non-suspension and debarment was not verified prior to execution of agreement entered with program funds. Cause: The City did not have controls in place to ensure vendor non-suspension/debarment was verified prior to execution of agreement. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two procurement agreements out of ten agreements were selected for testing. This accounted for $2,109,696 & $290,639 of federal expenditures. Recommendation: We recommend the City implement a tracking system to remind staff of suspension and debarment requirements. Management’s Response: See corrective action plan.

Federal Program: CDBG-Entitlement Grants Cluster, AL 14.218 Criteria: The requirements of 2CFRPart170 Appendix A states that direct recipients of grants or cooperative agreements are required to report first-tier subawards of $50,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Report System (FSRS) by the end of the following month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000. Condition: During the audit, we noted reporting of subaward information to FSRS was not performed within the required timeframe. Cause: The City did not have controls in place to ensure FSRS reporting was completed in the required timeframe. Identification as a Repeat Finding: This is a repeat finding. Listed as 2022-002 in prior year single audit report. Effect: The City could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two subrecipient agreements entered within the fiscal year under audit were selected to review FSRS submissions. This accounted for $32,405 of federal expenditures. Recommendation: We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response: See corrective action plan.

Federal Program: American Rescue Plan Act (ARPA), AL 21.027 Criteria: Per CFR 536.270-4 – Contractors are not to be listed in the System for Award Management Exclusions. Condition: During the audit, we noted that vendor non-suspension and debarment was not verified prior to execution of agreement entered with program funds. Cause: The City did not have controls in place to ensure vendor non-suspension/debarment was verified prior to execution of agreement. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two procurement agreements out of ten agreements were selected for testing. This accounted for $2,109,696 & $290,639 of federal expenditures. Recommendation: We recommend the City implement a tracking system to remind staff of suspension and debarment requirements. Management’s Response: See corrective action plan.