Audit 410145

2025-001. Reporting AL#: 14.218 and 14.241 Community Development Block Grant and Housing Opportunities for Persons with AIDS Grant Programs Award Year: 2025 Questioned Costs: None Criteria: 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 “FFATA” 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 through the federal subaward reporting system. Effective March 8, 2025, subaward reporting functionality transitioned from FSRS.gov to SAM.gov. The subawards are required to be reported in SAM no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Applicable subaward obligations/modifications are required to be reported. Condition: FFATA reporting was required for seven subawards related to the Community Development Block Grant [CDBG and Housing Opportunities for Persons with AIDS Grant Programs (HOPWA)]. Five of the required reports were ultimately submitted by the City after the applicable due date. The following tables summarize the findings: Transactions tested Dollar amount of tested transactions $ 230,000.00 Community Development Block Grant Program Subaward not reported Subaward not reported $ - Report not timely Report not timely $ 160,000.00 Subaward amount incorrect Subaward amount incorrect $ - $ Subaward missing key elements Subaward missing key elements - Transactions tested Dollar amount of tested transactions $ 1,175,873.00 Housing Opportunities for Persons with AIDS Grant Program Subaward not reported Subaward not reported $ - Report not timely Report not timely $ 479,618.00 Subaward amount incorrect Subaward amount incorrect $ - $ Subaward missing key elements Subaward missing key elements - The total dollar amount of tested transactions includes the full amount of obligations associated with each tested subaward. Accordingly, certain obligations had not yet been disbursed as of December 31, 2025. As a result, the total amount of tested transactions exceeds the expenditures reported on the Schedule of Expenditures of Federal Awards for the HOPWA Program. Questioned Costs: None. Context: We addressed the matter with City management who are aware of the reporting requirements. Effect: Failure to properly review and adhere to policies and procedures related to reporting can lead to noncompliance as well as the withholding of future awards. Cause: Management oversight. Recommendation: We recommend the City review and update its policies and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts. Views of Responsible Officials and Planned Corrective Action: We concur with the finding. The City will implement internal controls and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts.