Finding 386097 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-27
Audit: 298471
Organization: City of Portsmouth (NH)

AI Summary

  • Core Issue: The City failed to report subawards on time and accurately as required by FFATA.
  • Impacted Requirements: Compliance with FFATA mandates timely reporting of subawards of $30,000 or more.
  • Recommended Follow-Up: Enhance internal controls and procedures to ensure compliance with FFATA reporting requirements.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant Assistance Listing Number: 14.218 Federal Award Identification Number: B22MC330003 Pass‐Through Agency: N/A Pass‐Through Number(s): N/A Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first‐tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition and Context: We identified the following in our testing: 3 of 3 original subawards were not reported timely 1 of 3 original subawards reported actual expenses as opposed to contract award value 2 of 2 subaward amendments were not reported timely Questioned costs: None Cause: The City’s procedures were not sufficient to ensure full compliance with FFATA reporting requirements. Effect: Subawards were not reported timely or accurately in accordance with FFATA requirements. Repeat Finding: No. Recommendation: We recommend the City enhance internal controls and procedures to comply with all FFATA reporting requirements. Views of responsible officials: Management agrees with the finding.

Corrective Action Plan

The City of Portsmouth, New Hampshire respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 1, 2022 – June 30, 2023 The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDING—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2023-001 Community Development Block Grant - Assistance Listing Number 14.218 Recommendation: We recommend the City enhance internal controls and procedures to comply with all FFATA reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Some FFATA reports were not entered timely into FSRS in FY 23. This was due to an incomplete understanding about the requirement as well as no FFATA reporting requests by the federal granting agency (HUD) to the City. All required FFATA reports were entered into the FSRS after the deadlines, and City staff responsible for FFATA reporting have completed additional training on the requirements. We do not anticipate untimely reports to the FSRS in the future. Name(s) of the contact person(s) responsible for corrective action: Elise Annunziata, Community Development Director Planned completion date for corrective action plan: All required FFATA reports were already entered into the FSRS, and City staff responsible for FFATA reporting have completed additional training on the requirements. We do not anticipate untimely reports to the FSRS in the future.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 962539 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.458 Capitalization Grants for Clean Water State Revolving Funds $3.15M
84.425 Education Stabilization Fund $729,944
84.027 Special Education_grants to States $638,534
21.027 Coronavirus State and Local Fiscal Recovery Funds $450,000
84.010 Title I Grants to Local Educational Agencies $350,010
16.543 Missing Children's Assistance $250,880
14.218 Community Development Block Grants/entitlement Grants $101,914
84.287 Twenty-First Century Community Learning Centers $85,213
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $58,771
84.048 Career and Technical Education -- Basic Grants to States $57,151
10.553 School Breakfast Program $56,186
84.367 Improving Teacher Quality State Grants $28,793
20.205 Highway Planning and Construction $28,608
16.575 Crime Victim Assistance $22,547
16.588 Violence Against Women Formula Grants $21,287
84.424 Student Support and Academic Enrichment Program $20,633
84.173 Special Education_preschool Grants $17,833
84.365 English Language Acquisition State Grants $16,426
97.067 Homeland Security Grant Program $10,206
16.607 Bulletproof Vest Partnership Program $5,693
10.555 National School Lunch Program $2,871
16.922 Equitable Sharing Program $2,088
20.600 State and Community Highway Safety $1,313