FAC Explorer

Audit 379454

FY End
2025-06-30
Total Expended
$1.60M
Findings
4
Programs
15
Organization: City of Hillsboro (OR)
Year: 2025 Accepted: 2026-01-06
Auditor: BAKER TILLY US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1167935 2025-001 Material Weakness Yes L
1167936 2025-001 Material Weakness Yes L
1167937 2025-001 Material Weakness Yes L
1167938 2025-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $550,730 Yes 1
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $134,022 Yes 0
11.302 ECONOMIC DEVELOPMENT SUPPORT FOR PLANNING ORGANIZATIONS $120,076 Yes 0
66.818 BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS $119,399 Yes 0
97.039 HAZARD MITIGATION GRANT $107,211 Yes 0
20.507 FEDERAL TRANSIT FORMULA GRANTS $95,415 Yes 0
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $73,251 Yes 0
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $65,167 Yes 0
97.067 HOMELAND SECURITY GRANT PROGRAM $62,870 Yes 0
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $32,564 Yes 0
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $17,500 Yes 0
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $15,550 Yes 0
20.703 INTERAGENCY HAZARDOUS MATERIALS PUBLIC SECTOR TRAINING AND PLANNING GRANTS $4,489 Yes 0
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $3,896 Yes 0
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $457 Yes 0

Contacts

Name Title Type
KGJ9RMCYNNM3 Arlie Bonto-Kim Auditee
5036816295 Keith Simovic Auditor
No contacts on file

Notes to SEFA

The schedule above is prepared on the modified accrual basis of accounting. Grant revenues are recorded when the City has met the qualifications for the respective grants. Expenditures are recorded when the liability is incurred. The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The City provided subrecipient awards through the Community Development Block Grants/Entitlement Grants, Federal Assistance Listing Number (ALN) 14.218 in the amount of $647,501, Coronavirus State and Local Fiscal Recovery Grant, Federal ALN 21.027 in the amount of $59,064, and Coronavirus State and Local Fiscal Recovery Grant, Federal ALN 21.027 in the amount of $17,500.
Reflects the WIFIA Loan Program, Federal ALN 66.958, Beginning Balance as of July 1, 2024, as $250,523,385, draws received during the year of $0, Repayments made during the year as $0 and balance as of June 30, 2025 as $250,523,385.

Finding Details

Finding 2025-001
Reporting – Control Deficiency in Internal Controls over Compliance and Instance of Noncompliance. Federal Assistance Listing Number: 14.218. Federal Agency/Pass-through Entity - Program Name: Community Development Block Grants Cluster Entitlements/Special Purpose Grants. Award Number: N/A. Award Year: 2025. Questioned Costs: None Reported. Criteria or specific requirement: Prime grant recipients awarded a federal contract greater than or equal to $30,000 are subject to Federal Funding Accountability and Transparency Act (FFATA) subaward reporting requirements. The prime awardee is required to file a FFATA subaward report by the end of the month following the month in which the prime contractor awards any subcontract greater than or equal to $30,000. Condition: During our testing, the City did not file a FFATA report for two of its subrecipients that were granted the sub-award during the prior year with expenditures incurred in the current year. Context: Of the three subrecipients that received funding, two subrecipients did not have the FFATA report filed by the City. Effect: The FFATA report was not filed within 30 days of the sub-award. The failure to have the FFATA reports submitted could result in the submission of inaccurate or incomplete information to federal agencies, potentially leading to non-compliance with federal requirements, mismanagement of funds, and jeopardizing future funding. Cause: The City does not have an effective control in place to monitor reporting timelines and submission. Repeat finding: No. Recommendation: We recommend the City work to establish an internal tracking system to memorialize reporting deadlines and track the submission of required reports under the program. Views of responsible officials: Management agrees with the auditor recommendation. During the first and second quarters of fiscal year 2024-25, the City underwent personnel changes in the Affordable Housing Division, specifically with the key role of CDBG Program Coordinator. The transition created temporary gaps in institutional knowledge and disrupted workflow continuity. This caused the City to miss submissions of Federal Funding Accountability and Transparency Act (FFATA) reports. Upon discovery that the FFATA reports had been delayed, the new CDBG Program Coordinator entered the agreements into the federal reporting system to bring reporting up to date. Future subrecipient agreements will be reported to SAM.gov in a timely manner, and checklists have been updated to ensure this step is included as part of the awarding process.