Finding Text
U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant Assistance Listing Number 14.218 Reporting Significant Deficiency and Nonmaterial Noncompliance Finding 2025-003 Criteria: Section 170 Appendix A of the Uniform Guidance states that unless the direct recipient is exempt, the direct recipient must report each subaward that equals or exceeds $30,000 in Federal funds for a subaward to an entity or Federal agency. The recipient must also report a subaward if a modification increases the Federal funding to an amount that equals or exceeds $30,000. All reported subawards should reflect the total amount of the subaward. According to section 200.303 of the Uniform Grant Guidance, 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. Condition: The City did not report subrecipient awards as required per the Federal Funding Accountability and Transparency Act (FFATA) and the Uniform Grant Guidance. Questioned Costs: None reported. Effect: The City is not in compliance with reporting requirements of the Uniform Grant Guidance. Cause: The City did not have an adequate process in place to ensure subrecipient awards were timely reported to the Federal agency. Recommendation: We recommend the City ensure their subrecipient monitoring policies are followed and include procedures to ensure awards are reported timely to the respective Federal agency. Views of responsible officials: Management agrees with the finding and is implementing procedures to correct this, which is further discussed in the corrective action plan.