Finding 1105053 (2024-001)

UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Significant Deficiency in Internal Control over Compliance and Other Matter 2024-001 Community Development Block Grant; ALN # 14.218 Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement: Reporting 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, 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 (FSRS). Condition and Context: For two (2) of five subawards in our audit sample, the required reports were not filed with FSRS. Questioned Costs: None. Cause: Procedures need to be strengthened to ensure all required subaward reports are filed with FSRS. Effect: Noncompliance with federal reporting requirements. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to ensure all required subaward reports are filed with FSRS. Views of Responsible Officials: Management agrees with the finding.