Finding 391712 (2023-001)

Federal Program CDBG-Entitlement Grants Cluster, AL 14.218 Criteria The requirements of 2CFRPart170 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 within the required timeframe. 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 a repeat finding. Listed as 2022-001 in prior year single audit report. Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs None. Context/Sampling A nonstatistical sample of two subrecipient agreements entered within the fiscal year under audit were selected to review FSRS submissions. This accounted for $77,454 of federal expenditures. 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.