Finding Text
Federal Program: CDBG-Entitlement Grants Cluster, AL 14.218. Criteria: The requirements of 2 CFR Part 170 Appendix A states that direct recipients of grants or cooperative agreements are required to report first-tier subawards of $50,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Report System (FSRS) by the end of the following month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000. Condition: During the audit, we noted reporting of subaward information to FSRS was not performed. Cause: The City did not have controls in place to ensure FSRS reporting was completed in the required timeframe. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Recommendation: We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response: See Corrective Action Plan.