Audit 395981

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 2024-005 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 whether the prior year finding (2024-005) had been corrected. Based on inquiry with City personnel, FFATA subaward reporting had not yet been completed, as responsibility for reporting transitioned following the departure of the prior CDBG Grant Manager. Two subrecipients received CDBG funding in excess of $30,000, for a total of $230,919. These subawards are subject to FFATA reporting requirements.