FAC Explorer

Finding 39135 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 37910
Organization: Connecticut Fair Housing Center, Inc. (CT)
Auditor: Carney Roy and Gerrol PC

AI Summary

  • Core Issue: The Organization failed to report four sub-awards totaling $428,651 on the FSRS, violating federal requirements.
  • Impacted Requirements: Noncompliance with the Uniform Guidance and federal award contract mandates for reporting sub-awards and executive compensation.
  • Recommended Follow-Up: The Organization should improve its reporting procedures and complete the necessary submissions to ensure compliance.

Finding Text

FINDING 2022-003 Condition: The Organization did not report sub-awards on the Federal Sub-award Reporting System (FSRS)Website www.FSRS.gov. The reporting was not done for any of the four sub-awards associated with the major program tested. Amounts passed through to these subrecipients include $428,651 of subrecipient expenditures during 2022. Total new sub-awards made during 2022 were $1,749,827 and total cash paid to sub-award recipients was $43,496 during 2022. Criteria: The Uniform Guidance, Federal Funding Accountability and Transparency Act, 2 CFR Part 170, and the Organization?s federal award contract for the major program require federal award recipients to report sub-awards on the Federal Sub-award Reporting System (FSRS)Website www.FSRS.gov. Prime financial assistance awardees receiving funds directly from HUD are required to report sub-awards and executive compensation information both for the award and sub-awards, where both the initial award is $30,000 or greater or the cumulative award will be $30,000 or greater if funding incrementally as directed by HUD in accordance with OMB guidance. The prime awardee will have until the end of the month plus one additional month after a sub-award is obligated to fulfill the reporting requirement. Cause: The Organization inadvertently missed the reporting requirement. Effect: The Organization did not comply with its reporting requirements. This is considered noncompliance with the federal award program that was tested as a major program. It is also considered a significant deficiency in internal control over compliance, particularly compliance related to reporting, for federal awards. No adjustment to the financial statements was required. Recommendation: The Organization should reevaluate its procedures and controls regarding federal sub-award reporting to ensure proper compliance and should also complete the necessary reporting. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and plans to carry out the noted recommendation.

Corrective Action Plan

FINDING 2022-003 Condition: The Organization did not report sub-awards on the Federal Sub-award Reporting System (FSRS)Website www.FSRS.gov. The reporting was not done for any of the four sub-awards associated with the major program tested. Amounts passed through to these subrecipients include $428,651 of subrecipient expenditures during 2022. Total new sub-awards made during 2022 were $1,749,827 and total cash paid to sub-award recipients was $43,496 during 2022. Recommendation: The Organization should reevaluate its procedures and controls regarding federal subaward reporting to ensure proper compliance and should also complete the necessary reporting. Planned Corrective Actions: The Organization agrees with the finding and plans to carry out the recommendation noted above by October 31, 2023.

Categories

Subrecipient Monitoring HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 39133 2022-002
    Significant Deficiency
  • 39134 2022-002
    Significant Deficiency
  • 39136 2022-001
    Significant Deficiency
  • 615575 2022-002
    Significant Deficiency
  • 615576 2022-002
    Significant Deficiency
  • 615577 2022-003
    Significant Deficiency
  • 615578 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.537 Eviction Protection Grant Program $561,625
14.417 Fair Housing Organization Initiatives $250,000
14.418 Private Enforcement Initiatives $93,384
14.416 Education and Outreach Initiatives $56,242
14.218 Community Development Block Grants/entitlement Grants $10,858