Audit 400108

Finding 2025-003: ALN 20.106 ABIA FAA, 3-48-0359-067-2021, 3-48-0359-071-2022, 3-48-0359-074-2024, 3-48-0359-073-2024, 3-48-0359-075-2024, 3-48-0359-077-2025, 3-48-0359-078-2025, 3-48-0359-079-2025, 2025, U.S. Department of Transportation — Significant Deficiency in Internal Control over Reporting and Finding of Non-compliance Criteria: The Grant agreement requires the auditee to submit the following performance reports: • FAA Form 5100-140 – Performance Report for non-construction projects within 30 days of the end of the Federal fiscal year (“Performance Reports”) • FAA Form 5370-1 – Construction Progress and Inspection Report for construction projects within 30 days of the end of each Federal fiscal quarter (“Construction Progress and Inspection Reports”) Condition: • Performance Reports were prepared but not formally submitted to the grantor within the due dates stated in the grant agreements for 4 out of 4 grants subject to this reporting requirement. • Construction Progress and Inspection Reports were prepared but not formally submitted to the grantor within the due date stated in the grant agreements for 3 out of 4 grants subject to this reporting requirement. • Construction Progress and Inspection Reports were neither prepared nor formally submitted to the grantor for 1 out of 4 grants (Grant 3-48-0359-071-2022) subject to this reporting requirement. Cause: Performance reports are prepared by the respective project managers and updates on the projects are discussed during the weekly and monthly meetings with the Federal Aviation Administration Airports District Office – Texas (ADO). Grant management at the Aviation Department considered these meetings with the ADO’s contact as sufficient to meet the performance reporting requirement stated in the grant agreement. Further, for Grant 3-48-0359-071-2022, the Project Manager was not aware of the reporting requirements and as a result, the Construction Progress and Inspection Reports were not prepared for this grant. Effect: Although the City provides regular updates to the ADO, formal performance and progress reports were not consistently prepared and/or submitted. Deloitte & Touche LLP (D&T) inspected agendas for the relevant meetings and noted that the topics that would typically be included in such reports appear to have been covered. However, lack of formal preparation and/or submission of performance and progress reports may increase the risk that performance issues are not identified and corrected on a timely basis. Questioned Costs: None. Context: Repeat Finding from Prior Year: No Recommendations: Grant management at the Aviation Department should ensure all reports are prepared and formally submitted to the grantor according to the due dates stated in the grant agreement. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.

Finding 2025-002: ALN 93.686 Ending the HIV Epidemic: A Plan for America - Ryan White HIV/AIDS Award # 5 UT8HA33918-05-00 and 5 UT8HA33918-06-00, 2025, U.S. Department of Health & Human Services — Significant Deficiency in Internal Control over Reporting and Finding of Non-compliance Criteria: Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA), direct recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the SAM.gov (System for Award Management). Condition: During our testing, D&T inspected 2 grants or Assistance Listing Number (ALNs) with 5 subrecipients for compliance with the FFATA reporting requirements. D&T selected the 5 subrecipients for testing and determined that the Austin Public Health Department did not submit the required FFATA reports within SAM.gov. As such, the control was not properly designed or implemented. Cause: Austin Public Health grant management was not aware of the FFATA reporting requirement. Effect: Failure to report sub-award data does not provide the grantor with the required information related to the Austin Public Health Department's subrecipients. Questioned Costs: None. Context: Of 5 subrecipients related to 1 grant, D&T tested 5 and identified 5 instances of FFATA report not submitted. Repeat Finding from Prior Year: No Recommendation: Austin Public Health grant management should ensure that they have a mechanism for reporting subaward data in Sam.gov. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.

Finding 2025-004: – Finding of Significant Deficiency in Internal Control over Eligibility and Subrecipient Monitoring and Finding of Non-compliance ALN 14.241 Housing Opportunities for Persons with AIDS (HOPWA) Award #TXH22-F004, TXH23-F004 and TXH24-F004, 2025, U.S. Department of Housing and Urban Development ALN 93.686 Ending the HIV Epidemic: A Plan for America - Ryan White HIV/AIDS Award # 5 UT8HA33918-05-00 and 5 UT8HA33918-06-00, 2025, U.S. Department of Health & Human Services Criteria: Pass-through entities have a responsibility to verify that subrecipients are audited as required and ensure the subrecipient takes corrective action on any single audit findings related to the subaward or other audit findings that will impact their ability to meet the objectives of the subaward. Condition: ALN 14.241 Housing Opportunities for Persons with AIDS (HOPWA): • The City utilized 4 subrecipients to determine eligibility for the participants. Neither the City nor the City’s third-party vendor reviewed the respective Single Audit report for 1 of the 4 subrecipients to ensure that the City’s subaward was appropriately included within the subrecipient’s Single Audit Report. ALN 93.686 Ending the HIV Epidemic: A Plan for America - Ryan White HIV/AIDS (Ryan White): • Neither the City nor the City’s third-party vendor reviewed the Single Audit Report for 1 out of 5 subrecipients to ensure the subrecipient is taking corrective action on a single audit finding related to the program. Cause: The City monitors subrecipients under the HOPWA and Ryan White programs by utilizing a third-party vendor. However, the City did not ensure that the scope of work provided by the third-party vendor was sufficient to meet the subrecipient monitoring compliance requirements related to the review of single audits. Effects: Failure to review the Single Audit Reports of subrecipients could result in the City missing identified issues like internal control deficiencies or instances of noncompliance, which may result in the early termination of the grant award, non-reimbursement of grant funding, or cessation of future funding. Questioned Costs: None. Context: While the City has a control in place to ensure Single Audit Reports were submitted, neither the City nor the third-party vendor reviewed the most recently available Single Audit Reports of its subrecipients to ensure the City’s subaward agreements were appropriately included, and whether there were any audit findings requiring corrective action. ALN 14.241 Housing Opportunities for Persons with AIDS (HOPWA): • 1 out of 4 subrecipients’ Single Audit Reports was not reviewed to ensure that the City’s subaward was appropriately included within the Schedule of Expenditures of Federal Awards. Within this subrecipient’s Single Audit Report, the subrecipient did not list the City as a grantor for the HOPWA program under ALN 14.241, despite having expenditures incurred during the fiscal year under audit. ALN 93.686 Ending the HIV Epidemic: A Plan for America - Ryan White HIV/AIDS (Ryan White): • 1 out of 5 subrecipients’ Single Audit Reports were not reviewed to ensure the subrecipient had implemented corrective action on related audit findings. Within this subrecipient’s Single Audit Report, there was a reportable audit finding related to the same ALN as the Ryan White program. While the finding was not related to the City’s subaward under the Ryan White program, the finding could potentially impact the subrecipient’s compliance with the City’s subaward. Repeat Finding from Prior Year: No Recommendations: Austin Public Health grant management should refine their controls to ensure that Single Audit Reports are reviewed for audit findings that have a potential to impact compliance with the City’s subawards, and to ensure the pass-through funds provided to the subrecipient have been appropriately disclosed on the subrecipient’s Schedule of Expenditures of Federal Awards. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.