Finding Text
Finding No.: 2025-005 Identification of the federal program: Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: B19ST660001, B20ST660001, B20SW660001, B21ST660001, B22ST660001, B23ST660001, B24ST660001 Area: Reporting - Federal Funding Accountability and Transparency Act Criteria or specific requirement (including statutory, regulatory or other citation): Per the Federal Funding Accountability and Transparency Act (FFATA), HUD requires PHAs to report each first-tier subaward of $30,000 or more in federal funds to the Federal Subaward Reporting System (FSRS) by the end of the month following the month in which the subaward was issued. Condition: For two (50%) of four subawards tested, aggregating $2,402,176 of $2,769,050, the subawards were not reported in the Federal Subaward Reporting System (FSRS) as follows: Transactions Tested Subaward Not Reported Dollar Amount of Tested Transactions Subaward Not Reported 2 2 $2,769,050 $2,402,176 Cause: GHURA did not establish or consistently implement internal control policies and procedures relating to timely and accurate reporting of all first-tier subawards in the Federal Subaward Reporting System (FSRS). Effect or potential effect: GHURA is in noncompliance with applicable reporting requirements for FFATA reporting. Questioned costs: $0 Identification as a repeat finding: 2024-001 Finding No.: 2025-005, continued Recommendation: Responsible personnel should establish, implement, and maintain effective internal controls over compliance with applicable FFATA reporting requirements. Specifically, such controls should address identifying, documenting, and timely reporting first-tier subawards to the Federal Subaward Reporting System (FSRS). GHURA should also implement monitoring controls for review and reconciliation of subawards to the FSRS. Views of Responsible Officials: Management partially concurs with the finding. Refer to Management’s position as outlined in the Corrective Action Plan. Conclusion: Management submitted additional information on June 28, 2026; however, due to time constraints, we were unable to sufficiently corroborate and evaluate the documentation provided. Accordingly, the finding remains, as there was insufficient evidence to support a determination of compliance as of the audit date.