Finding Text
Federal Program
CDBG-Entitlement Grants Cluster, AL 14.218
Criteria
The requirements of 2CFRPart170 Appendix A states that direct recipients of grants or cooperative
agreements are required to report first-tier subawards of $50,000 or more to the Federal Funding
Accountability and Transparency Act (FFATA) Subaward Report System (FSRS) by the end of the following
month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires
this reporting at the $30,000.
Condition
During the audit, we noted reporting of subaward information to FSRS was not performed within the
required timeframe.
Cause
The City did not have controls in place to ensure FSRS reporting was completed in the required timeframe.
Identification as a Repeat Finding
Reported as finding 2023-001 in the prior year.
Effect
The City could jeopardize future grant funding due to program noncompliance.
Questioned Costs
None. Context/Sampling
In fiscal year 2023, a nonstatistical sample of two subrecipient agreements entered within the fiscal year
under audit were selected to review FSRS submissions. This accounted for $77,454 of federal
expenditures. Upon follow-up with the City regarding the correction of finding 2023-001, they were unable
to provide evidence that the City had implemented the necessary corrective action. As a result, this finding
will remain as a repeat finding.
Recommendation
We recommend the City implement a tracking system to remind staff of the various reports due and
respective deadlines.
Management’s Response
See Corrective Action Plan.