Finding 23390 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-20
Audit: 24983
Organization: City of Camarillo (CA)

AI Summary

  • Core Issue: The City failed to file required FFATA sub-award reports for three subrecipients who received over $30,000 in federal funds.
  • Impacted Requirements: Compliance with the Federal Funding Accountability and Transparency Act (FFATA) reporting obligations.
  • Recommended Follow-Up: Establish policies and procedures to ensure timely FFATA reporting for all applicable subawards.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: CDBG ? Community Development Block Grants Federal Award Identification Number and Year: B-21-MC-06-0587 / B-20-MW-06-0587, fiscal year 2021-2022 Assistance Listings Number: 14.218 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: Reporting - Prime recipients awarded a federal grant greater than or equal to $30,000 are subject to Federal Funding Accountability and Transparency Act (FFATA) sub-award reporting requirements as outlined in the Office of Management and Budgets guidance issued August 13, 2020. The prime recipient is required to file a FFATA subaward report by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. Condition: The City is a prime recipient and provided subawards totaling $244,758 to nine recipients, with three subrecipients over the $30,000 reporting threshold. No FFATA report was filed for these recipients. Questioned costs: None Context: The City is a prime recipient and provided subawards totaling $244,758 to nine recipients, with three subrecipients over the $30,000 reporting threshold. No FFATA report was filed for these recipients. Cause: The City was not aware that the FFATA reporting requirements applied to this Federal award. Effect: The City was not in compliance with the FFATA reporting requirements. Repeat Finding: No. Recommendation: We recommend the City implement policies and procedures to ensure that FFATA reporting occurs for all subawards of $30,000 or more for all federal awards. View of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

City of Camarillo respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: CliftonLarsonAllen LLP 2875 Michelle Drive, Suite 300 Irvine, CA 92606 Audit Period: July 1, 2021 ? June 30, 2022 Significant Deficiency in Internal Control over Compliance and Other Matter: 2022-001 Recommendation: We recommend that the City implement policies and procedures to ensure that FFATA reporting occurs for all subawards of $30,000 or more for all federal awards. Action Taken: The City works with a consultant that provides the FFATA reporting for all Department of Housing and Urban Development grants. The City is updating its grant procedures to include a new process to file the FFATA report for all federal grants that have subawards of $30,000 or greater. For any questions regarding this plan, please contact me at (805) 388-5320 or email muribe@cityofcamarillo.org.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 599832 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.504 Title Xvi Water Reclamation and Reuse Program $6.44M
20.507 Federal Transit_formula Grants $2.41M
20.205 Highway Planning and Construction $277,515
14.218 Community Development Block Grants/entitlement Grants $275,842
21.027 Coronavirus State and Local Fiscal Recovery Funds $160,471
97.067 Homeland Security Grant Program $2,866
97.042 Emergency Management Performance Grants $2,199