Audit 406620

Program: CDBG - Entitlement Grants Cluster Assistance Listing Number: 14.218 Compliance Requirement: Reporting Federal Agency: Department of Housing and Urban Development Program: CDBG – Entitlement Grants Cluster Assistance Listing Number: 14.218 Compliance Requirement: Reporting Federal Agency: Department of Housing and Urban Development Criteria or Specific Requirement: Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred to as the “Transparency Act,” that are codified in 2 CFR Part 170, recipients (i.e., direct 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 in SAM.gov. Condition: The City did not report the subaward information for the fiscal year ended September 30, 2025. Questioned Costs: N/A Context: One of the City's two applicable subawards was initially selected for testing under the program. The City did not report the subaward information. The sample was not intended to be, and was not, a statistically valid sample. Upon further discussion and analysis, the City did not report the subaward information for all of the CDBG subawards. Effect: The City did not report the subaward information as required. Cause: The City did not have adequate controls or procedures in place to identify the applicable reporting requirement and ensure the information was filed accurately and timely. Identification as a Repeat Finding: N/A Recommendation: Management should implement policies and procedures to ensure required reports are completed and filed by their respective due dates as required by the grant agreement and Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding. See separate report for planned corrective actions.