Finding Text
2024-005 Community Development Block Grants, ALN 14.218
Federal Award Identification Number and Year: B-23-MC-25-0019, 2024
Award Period: July 1, 2023 through June 30, 2024
Compliance Requirement: Reporting
Criteria or Specific Requirement: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (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). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000.
Per 2 CFR section 200.303(a), a non-federal entity must: Establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Such internal control encompasses compliance with reporting requirements of the federal award.
Condition and Context: For one of three subawards tested in our statistically valid sample, the City did not provide documentation supporting the reporting of the subaward to FSRS in accordance with FFATA requirements.
For both of the two PR29 CDBG Cash on Hand Quarterly Reports tested in our statistically valid sample, the City improperly calculated the beginning cash on hand at $0.00.
Questioned Costs: None.
Cause: Procedures were not implemented effectively to ensure the required reports were completed and submitted in accordance with the terms and conditions of the federal award.
Effect: Noncompliance occurred as these reports were not completed and processed in accordance with federal award requirements.
Repeat Finding: No.
Recommendation: We recommend procedures be strengthened to ensure federally required reports are completed and processed in accordance with the requirements of the federal awards.
Views of Responsible Officials: Management agrees with the finding.