Finding 1054507 (2023-002)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Programs Assistance Listing Number: 14.218 Federal Award Identification Number: B-22-MC-06-0552 Pass-Through Agency: N/A Pass-Through Numbers: N/A Award Period: July 1, 2022 through September 1, 2029 Type of Finding: Other matter and significant deficiency in internal control over compliance Criteria or Specific Requirement: Pursuant to 2 CFR Part 170, under the requirements of the Federal Funding Accountability and Transparency Act (FFATA), recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: The City was unable to provide supporting documentation that the required special reporting was completed and submitted pursuant to FFATA. Questioned Costs: None. Context: Based on a statistically valid sample of two subawards, the City was unable to provide specific supporting documentation that the required special report was completed and submitted. Cause: The City did not retain specific supporting documentation that the required special report was completed. Effect: Noncompliance noted with the provisions of special reporting. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City review and modify internal control procedures over compliance to ensure that specific supporting documentation for reporting is performed and retained. View of Responsible Officials: There is no disagreement with the audit finding.