Finding 1143462 (2024-001)

Finding: Reporting CDBG – Entitlement Grants Cluster Assistance Listing Number: 14.218 Department of Housing and Urban Development, Award Number B-24-MC-05-0005, Award Year 2024 Criteria: In accordance with 2 CFR Part 170 and FAR 52.204-10(a), a recipient must report subaward data through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) for each first-tier subaward or subaward amendment that results in an obligation of $30,000 or more in federal funds. Condition: We noted the City did not submit the required report in FSRS during the year ended December 31, 2024 for a first-tier subaward resulting in an obligation of $36,000. Questioned Costs: None Context: We identified and tested one first-tier subaward that was required to be reported in FSRS for the year ended December 31, 2024, and noted the report was not submitted as described above. Effect: Failure to report subaward obligations in FSRS could lead to inaccurate reporting information in FSRS. In addition, failure to report subaward obligations in FSRS could result in non-compliance with meeting the transparency requirements outlined in the Coronavirus Aid, Relief, and Economic Security Act. Cause: Controls over reporting were not sufficiently operating during the year primarily due to staffing issues and turnover within the Grants Department. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that the City develop a process for reviewing and tracking the reporting of subaward obligations in FSRS. Views of Responsible Officials: We agree with the finding. See separate report for planned corrective actions.