Finding 1182526 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-24
Audit: 393947
Organization: City of Seaside (CA)

AI Summary

  • Core Issue: The City failed to report first-tier subawards over $30,000 to SAM.gov, violating FFATA requirements.
  • Impacted Requirements: Non-compliance with FFATA reporting as outlined in 2 CFR Part 25 and 170.
  • Recommended Follow-up: The City should create procedures and update policies to ensure timely FFATA reporting.

Finding Text

Finding Reference Number: SA2025-001 Federal Funding Accountability and Transparency Act (FFATA) Reporting Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant – Entitlement Grant Name of Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-18-MC-06-0006 B-19-MC-06-0006 B-23-MC-06-0006 B-24-MC-06-0006 Criteria: According to the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109-282), as codified in 2 CFR Part 25 and 170, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to System for Award Management (SAM.gov). Subawards entered into the SAM.gov should be maintained so that any amendments to the subawards are also reflected in the system. Condition: We noted that the City did not report the first-tier subawards over $30,000 in SAM.gov in the fiscal year ending June 30, 2025. Cause: The City Staff has attempted to set up a SAM.gov account but has been unsuccessful. Effect: The City is not in compliance with the FFATA reporting requirements. Identification as a Repeat Finding: SA2024-001 – Federal Funding Accountability and Transparency Act (FFATA) Recommendation: The City should develop procedures and update the program policies and procedures manual to ensure the completion of applicable FFATA reporting timely View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.

Corrective Action Plan

The City concurs with the finding. The City determined that FFATA reporting delays were due to administrative and system access limitations within SAM.gov. On March 13, 2026, the City restored and assigned appropriate user roles and permissions to CDBG staff, enabling submission of required reports. The City is currently retroactively reporting all applicable subawards using the original obligation dates and has reviewed subrecipient agreements to identify all reportable awards. To ensure ongoing compliance, the City will: • Notify its HUD CPD representative of corrective actions taken • Update its CDBG Policies and Procedures Manual to incorporate FFATA requirements • Integrate FFATA reporting into the subrecipient agreement workflow • Maintain a tracking log to monitor reporting status and deadlines • Provide staff training and implement periodic supervisory review The City has determined the issue was administrative in nature and did not impact program eligibility or expenditures.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting

Programs in Audit

ALN Program Name Expenditures
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $584,657
12.000 ISSUE OF DEPARTMENT OF DEFENSE EXCESS EQUIPMENT $522,016