Finding 1240181 (2025-002)

Finding 2025-002 – Significant Deficiency/Reporting Noncompliance CDBG – Entitlement Grants Cluster – ALN 14.218 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Criteria: The U.S. Department of Housing and Urban Development (HUD) established reporting requirements for local governments. These requirements established methods for reporting Federal Funding Accountability and Transparency Act (FFATA) information. Condition: We performed tests to determine if the City was in compliance with reporting requirements for the federal program. The City is required to report specific data about subrecipients and subawards in the subaward reporting system. Context: The City did not report any subrecipients (subaward) information during 2025.Cause: There was a misunderstanding by the City’s program management. Program management did not file FFATA reports because HUD did not conduct monitoring of this requirement and program management thought this meant the requirement was not applicable to the City. Effect: The City was not in compliance with reporting requirements in 2025. Recommendation: We recommend the City enhance its internal control over the reporting requirements of the CDBG program by reviewing the U.S. Department of Housing and Urban Development’s federal guidance for reporting. Views of Responsible Officials: Management concurs. See corrective action plan.