Audit 390297

2025-001 - Equipment and Real Property Management Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Real Property and Equipment Management). Program. Community Development Block Grant - Entitlement Grants Cluster; U.S. Department of Housing and Urban Development; Assistance Listing Number 14.218; Award Numbers B22-MC-26-0035 and B20-MW-26-0035. Criteria. The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years. Condition. The City has not conducted a physical inventory of equipment in accordance with the requirements of the Uniform Guidance. Cause. This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management. Effect. As a result of this condition, the City did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance if equipment and real property are disposed in future years as a result of not having completed the physical inventory. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. Recommendation. We recommend that the City take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years. View of Responsible Officials. Management concurs with the finding. The City will perform an inventory of equipment purchased with federal funds.

2025-002 - Timeliness of Federal Funding Accountability and Transparency Act Reporting Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Reporting). Program. Community Development Block Grant - Entitlement Grants Cluster; U.S. Department of Housing and Urban Development; Assistance Listing Number 14.218; Award Numbers B22-MC-26-0035 and B20-MW-26-0035. Criteria. Prime awardees must complete Federal Funding Accountability and Transparency Act Reporting (FFATA) for subawards and sub-contracts equal to or greater than $30,000. Reports must be filed within 30 days of the subaward to the FFATA reporting website SAM.gov. Condition. The City completed its FFATA reporting after the reporting deadline of 30 days. Cause. This condition was caused by a lack of complete understanding of the reporting requirements associated with FFATA. Effect. As a result of this condition, the City did not comply with the requirements of the Uniform Guidance to complete FFATA reporting in a timely manner. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. Recommendation. We recommend that the City complete FFATA reporting requirements in a timely manner. View of Responsible Officials. Management concurs with the finding. The City will complete FFATA reporting requirements in a timely manner going forward.