Finding 391714 (2023-003)

Federal Program American Rescue Plan Act, AL 21.027 Criteria The requirements of 2CFR Part 200.332 state the various requirements of subrecipient agreements, which include the assistance listing number of the grant funding being passed through, and indication that the subrecipient would be subject to single audit requirements as set forth in 2CFR Part 200, Subpart F (Uniform Guidance). Condition During the audit, we noted the agreement with subrecipient did not include the items noted in the criteria above. Cause The City did not have controls in place to ensure the required information was included in the subrecipient agreement. Identification as a Repeat Finding This is not a repeat finding. Effect The City could jeopardize future grant funding due to program noncompliance and subrecipients could be unaware of the required compliance requirements. Questioned Costs None. Context/Sampling The only new subrecipient agreement entered for the fiscal year under audit was selected for review. There were no federal expenditures related to the agreement for the period under audit as the agreement was entered into in June 2023. Recommendation We recommend the City review 2CFR200 to ensure information required in subrecipient agreements is properly included. Management’s Response See Corrective Action Plan.