Reporting – FFATA Subawards Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Community Development Block Grants/Entitlements Grants ALN: 14.218 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: B-18-MC-48-0002, B-19-MC-48-0002, B-20-MC-48-0002, B-21-MC-48-0002, B-22-MC-48-0002, B-23-MC-48-0002, B-24-MC-48-0002 October 1, 2018 – September 1, 2025, October 1, 2019 – September 1, 2026, October 1, 2020 – September 1, 2027, October 1, 2021 – September 1, 2028, October 1, 2022 – September 1, 2029, October 1, 2023 – September 1, 2030, October 1, 2024 – September 1, 2031 Type of Finding: Material Weakness in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), the City of Amarillo (the City) must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the Federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (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). As of March 8, 2025, fsrs.gov was retired, and all subaward reporting data and functionality are now on SAM.gov. Condition: During the fiscal year, the City issued multiple first-tier subawards under the Community Development Block Grants/Entitlement Grants program that exceeded the $30,000 reporting threshold. However, the City did not report any of the applicable subawards in the FFATA Subaward Reporting System/SAM.gov as required. Questioned costs: None. Context: See “Condition.” Cause: The City had not established sufficient procedures or oversight controls to identify first-tier subawards subject to FFATA reporting requirements and ensure the required subaward information was submitted timely. Additionally, personnel responsible for grant administration were not sufficiently aware of the applicable FFATA reporting requirements. Effect: Failure to report required subaward information resulted in noncompliance with federal transparency reporting requirements and reduced public visibility into the use of federal funds. The lack of reporting may also subject the City to increased federal monitoring, enforcement actions, or other administrative remedies. Repeat Finding: No. Recommendation: The City should establish and implement formal procedures to identify subawards subject to FFATA reporting, track applicable reporting deadlines, and ensure required submissions are completed timely in SAM.gov. The City should also provide training to grant administration personnel and perform corrective reporting for previously omitted subawards, as applicable. Views of responsible officials: See management response on corrective action plan.