Finding Text
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires prime recipients of federal grants or contracts ($30,000 or more) to report first-tier subawards and executive compensation via SAM.gov by the end of the month following the month of the award. Condition: Internal controls should be in place to ensure the City is in compliance with all requirements of the federal award program. The City did not report the first-tier subawards in compliance with the Uniform Guidance. Context/Cause: The City did not have adequate internal controls to ensure compliance with FFATA reporting requirements. It was determined that there were twenty (20), fourteen (14), and eight (8) first-tier subawards subject to FFATA reporting for the CDBG, HOPWA, and EFSP programs, respectively. The City did not monitor any of the first-tier subawards subject to FFATA reporting to ensure FFATA reporting was completed timely for each subaward. Effects: Noncompliance for reporting the first-tier subawards subject to FFATA reporting occurred and was not detected by the City. Questioned Costs: None Recommendation: We recommend the City enhance internal controls to ensure compliance with FFATA reporting requirements. Auditee’s Response: Management will implement a process to ensure compliance with FFATA reporting requirements.