FAC Explorer

Audit 38790

FY End
2022-09-30
Total Expended
$3.15M
Findings
2
Programs
4
Organization: National League of Cities (DC)
Year: 2022 Accepted: 2023-04-11
Auditor: Marcum LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42613 2022-003 Material Weakness - L
619055 2022-003 Material Weakness - L

Programs

ALN Program Spent Major Findings
11.307 Economic Adjustment Assistance $2.89M Yes 1
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $125,224 - 0
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nations Health $71,752 - 0
93.011 National Organizations of State and Local Officials $59,263 - 0

Contacts

Name Title Type
HBJ6GR29M5K9 Michael Terseck Auditee
2023296358 Eric Glantz Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The League has elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of the National League of Cities and Affiliates (collectively referred to as the League) under programs of the federal government for the year ended September 30, 2022. The information on the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the League, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the League.

Finding Details

Finding 2022-003
Finding No. 2022-003: Reporting ? Compliance Finding and Material Weakness in Internal Control Over Compliance ALN 11.307 ? Economic Adjustment Assistance, Grant Period: January 1, 2022 to September 30, 2022, Grant Number ED22HDQ3070070 Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA), prime recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The prime recipient is required to file a FFATA subaward report by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. Condition and Context The League did not file a FFATA subaward report for its three subrecipients timely. All FFATA sub-award reports were filed after September 30, 2022, which was more than a month after the League awarded its subrecipients with grants more than $30,000. Cause The League was unaware of the compliance requirement. Also, there were no written policies or procedures for employee guidance. Effect The League was late in submitting the required FFATA subaward reports, which resulted in a noncompliance with the reporting requirements under the grant agreement. Repeat Finding No. Questioned Cost None Recommendation We recommend that the League implement procedures and enhance internal controls to ensure appropriate and timely compliance with all applicable federal regulations. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2022-003
Finding No. 2022-003: Reporting ? Compliance Finding and Material Weakness in Internal Control Over Compliance ALN 11.307 ? Economic Adjustment Assistance, Grant Period: January 1, 2022 to September 30, 2022, Grant Number ED22HDQ3070070 Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA), prime recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The prime recipient is required to file a FFATA subaward report by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. Condition and Context The League did not file a FFATA subaward report for its three subrecipients timely. All FFATA sub-award reports were filed after September 30, 2022, which was more than a month after the League awarded its subrecipients with grants more than $30,000. Cause The League was unaware of the compliance requirement. Also, there were no written policies or procedures for employee guidance. Effect The League was late in submitting the required FFATA subaward reports, which resulted in a noncompliance with the reporting requirements under the grant agreement. Repeat Finding No. Questioned Cost None Recommendation We recommend that the League implement procedures and enhance internal controls to ensure appropriate and timely compliance with all applicable federal regulations. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.