Finding 1227753 (2025-001)

Finding 2025-001 Assistance Listing Number 20.823 Federal Program Port Infrastructure Development Program Award Number / Year 693JF72444075 / 2025 Pass-Through Entity Not applicable Criteria: Per the Federal Funding Accountability and Transparency Act (FFATA), as implemented through 2 CFR Part 170 and the terms and conditions of the federal award, non-federal entities are required to report information on first-tier subawards exceeding applicable thresholds in SAM.gov (FSRS) by the end of the month following the month in which the subaward obligation was made. Condition/Context: The City did not prepare or submit the required FFATA report for the first-tier subrecipient. There was one active subrecipient agreement in the year under audit. Our sample was not statistically valid. Cause: The agreement was unique to the City and there was some confusion on whether the entity in question was a subrecipient or contractor. Effect: Information required by the federal government was not reported and ultimately not available for disclosure on the federal website. Questioned Costs: None noted. Recommendation: We recommend the City establish procedures to identify subawards subject to FFATA requirements at the time of award and implement controls to ensure FFATA reports are prepared, reviewed, and submitted timely. The city should consider assigning clear responsibility for preparation and submission as well as providing training to relevant personnel on FFATA requirements. A checklist or tracking mechanism may assist in ensuring all required reports are completed. View of Responsible Officials: The City of Milwaukee Comptroller’s Office, in partnership with the Department of Administration, recognizes the need for procedures to be established related to FFATA reporting for all city departments receiving federal grant funds. FFATA reporting instructions have been distributed to all city departments with directions on how to complete the reports and when the reports are due.