Finding 1205003 (2024-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-03-30
Audit: 396662
Organization: The City of Frederick, Maryland (MD)
Auditor: SB & COMPANY LLC

AI Summary

  • Core Issue: The City failed to report first-tier subawards over $30,000 as required by the Transparency Act.
  • Impacted Requirements: Noncompliance with FFATA reporting obligations, specifically regarding the submission of subawards to the FSRS.
  • Recommended Follow-Up: Implement controls to ensure all subrecipients are reported accurately and timely in the FSRS portal.

Finding Text

Finding 2024-006 U.S. Department of Health and Human Services Assistance Listing Number 93.137 – Community Programs to Improve Minority Health Grant Program Material Weakness and Noncompliance over Reporting - FFATA Repeat Finding: No Criteria: Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, recipients (i.e., 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). Condition and Context: The City is a direct recipient of Community Programs to Improve Minority Health Grant Program funds from the Department of Health and Human Services and provided first-tier subawards greater than $30,000. The City did not provide support showing submission of their FFATA reporting. Cause: Management does not have procedures in place to ensure subrecipients meeting the reporting requirement are entered into the FSRS portal. Effect or Potential Effect: The City did not report its first-tier subawards in accordance with the Transparency Act requirements. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements None None N/A N/A N/A Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $761,358 $761,358 N/A N/A N/A Questioned Costs: None. Recommendation: We recommend the City establish and implement controls to maintain compliance with reporting requirements. Views of Responsible Officials: Management agrees with the finding. Refer to the Corrective Action Plan Section of this report.

Corrective Action Plan

Finding reference: 2024-006 - 93.137 – Community Programs to Improve Minority Health Grant Program Material Weakness and Noncompliance over Reporting - FFATA Recommendation: We recommend the City establish and implement controls to maintain compliance with reporting requirements. Action taken: In addition to hiring a grant manager to oversee compliance, the City has purchased OpenGov grant software to ensure compliance, monitoring and the insurance of timely submissions in accordance with the grant. This system is designed to send notifications of reporting requirements prior to the due date.

Categories

Subrecipient Monitoring Reporting Material Weakness

Other Findings in this Audit

  • 1204983 2024-003
    Material Weakness Repeat
  • 1204984 2024-003
    Material Weakness Repeat
  • 1204985 2024-003
    Material Weakness Repeat
  • 1204986 2024-003
    Material Weakness Repeat
  • 1204987 2024-003
    Material Weakness Repeat
  • 1204988 2024-003
    Material Weakness Repeat
  • 1204989 2024-008
    Material Weakness Repeat
  • 1204990 2024-009
    Material Weakness Repeat
  • 1204991 2024-010
    Material Weakness Repeat
  • 1204992 2024-008
    Material Weakness Repeat
  • 1204993 2024-009
    Material Weakness Repeat
  • 1204994 2024-010
    Material Weakness Repeat
  • 1204995 2024-008
    Material Weakness Repeat
  • 1204996 2024-009
    Material Weakness Repeat
  • 1204997 2024-010
    Material Weakness Repeat
  • 1204998 2024-008
    Material Weakness Repeat
  • 1204999 2024-009
    Material Weakness Repeat
  • 1205000 2024-010
    Material Weakness Repeat
  • 1205001 2024-004
    Material Weakness Repeat
  • 1205002 2024-005
    Material Weakness Repeat
  • 1205004 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.27M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE $1.67M
93.137 COMMUNITY PROGRAMS TO IMPROVE MINORITY HEALTH $815,135
10.558 CHILD AND ADULT CARE FOOD PROGRAM $786,906
93.224 COVID-19 - HEALTH CENTER PROGRAM $448,049
93.569 COMMUNITY SERVICES BLOCK GRANT $304,444
93.224 HEALTH CENTER PROGRAM $218,425
14.218 COVID-19 - COMMUNITY DEVELOPMENT BLOCK GRANTS/EMTITLEMENT GRANTS $167,294
10.935 URBAN AGRICULTURE AND INNOVATIVE PRODUCTION $152,301
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $151,662
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $114,445
20.106 AIRPORT IMPROVEMENT PROGRAM $107,000
16.745 CRIMINAL AND JUVENILE JUSTICE AND MENTAL HEALTH COLLABORATION PROGRAM $94,283
16.738 TRAINING AND TECHNOLOGY IMPROVEMENT PROJECT $89,837
16.738 BRYNE DISCRETIONARY COMMUNITY PROJECT FUNDING/BYRNE DISCRETIONARY GRANTS PROGRAM $83,450
93.150 PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS (PATH) $76,265
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $70,125
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $62,686
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $42,538
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $35,917
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $22,020
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $19,548
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $18,097
97.067 STATE HOMELAND SECURITY GRANT PROGRAM $15,800
93.499 LOW INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM $10,156
21.026 HOMEOWNER ASSISTANCE FUND $8,503
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $8,086
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $7,677
14.267 CONTINUUM OF CARE PROGRAM $6,610
84.425 EDUCATION STABILIZATION FUND $5,010