Audit 371177

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 entity 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 2023-005 in prior year single audit report. Effect: The entity could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Context/Sampling: During the audit, we inquired if prior year finding (2023-005) had been corrected. At the time of fieldwork, the City noted that FFATA system platform was still in process of being set up for use. This accounts for $151,675 of federal expenditures. Recommendation We recommend the entity implement a tracking system to remind staff of the various reports due and respective deadlines ahead of time. Managements Response: See corrective action plan.

Federal Program: American Rescue Plan Act (ARPA), AL 21.027. Criteria: Part 4 of the Compliance Supplement requires the submission of a quarterly Performance and Expenditure Report. According to the SLFRF Compliance and Reporting Guidance referenced in the supplement, these reports are due by the last day of the month following the end of each quarter. Condition: During the audit, we found that the Quarter 1 Performance and Expenditure Report was not submitted within the required deadline. Cause: The entity began preparing the report a few days before the deadline; however, when attempting to submit it, they encountered technical issues with the U.S. Department of the Treasury’s website, which prevented timely submission. Identification as a Repeat Finding: This is not a repeat finding. Effect: The entity could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Context/Sampling: A sample of all four quarterly P & E reports applicable under the fiscal year under audit were reviewed. Recommendation: We recommend the entity implement a tracking system to remind staff of the various reports due and respective deadlines ahead of time. Management’s Response: See corrective action plan.