Finding Text
Finding No. SA 2025-001 – Noncompliance with FFATA Subaward Reporting Requirements Federal Assistance Listing Number: 14.218 Federal Program Title: Community Development Block Grants/ Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Award Period: Fiscal year 2025 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Per OMB Compliance Supplement and the requirements of the Federal Funding Accountability and Transparency Act (FFATA), direct recipients of grants and cooperative agreements are required to report first-tier subawards of $30,000 or more to the System for Award Management (SAM) within the prescribed reporting timeframe. Condition: The City did not report required first‑tier subawards of $30,000 or more to the System for Award Management (SAM) in accordance with FFATA reporting requirements. Cause: The City did not establish formalized policies and procedures to identify programs subject to FFATA reporting requirements and to ensure timely collection, review, and submission of first‑tier subaward data to SAM. In addition, responsibilities for FFATA compliance were not clearly assigned, and there was no monitoring control in place to verify that required subaward information was reported accurately and within the prescribed reporting timelines. Effect: Failure to timely submit FFATA subaward reports constitutes noncompliance with federal transparency and reporting requirements and may result in sanctions, including fines and penalties, as well as the suspension or termination of federal awards. Questioned Costs: None. Repeat Finding: Yes. See Summary Schedule or Prior Year Audit Findings (SA 2024-001). Recommendation: We recommend that the City establish and implement formal policies and procedures to ensure compliance with FFATA reporting requirements, including timely identification and reporting of first‑tier subawards to the System for Award Management (SAM). Views of responsible officials and planned corrective actions: The Housing Manager and Management Analyst/Grant Writer are collaboratively working to ensure FFATA reports are completed prior to disbursing funds to subawardees. Personnel responsible for implementation Vanessa Sedano, Housing Manager Completion Date: June 30, 2026