Finding 42569 (2022-001)

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Requirement
LM
Questioned Costs
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Year
2022
Accepted
2023-03-30
Audit: 39729
Organization: City of Watsonville (CA)

AI Summary

  • Core Issue: The City failed to meet reporting requirements and monitor subrecipients as mandated by the grant agreement.
  • Impacted Requirements: Compliance with the Federal Funding Accounting and Transparency Act is essential for all grant activities, regardless of funding duration.
  • Recommended Follow-Up: Ensure adherence to grant requirements and implement monitoring practices for all subrecipients, even for one-time awards.

Finding Text

? Finding reference number: 2022-001 ? Assistance Listing Number: 14.218 ? Assistance Listing Title: Community Block Development Grant Coronavirus (COVID19) ? Name of Federal Agency: Department of Housing and Urban Development. ? Criteria: Part 7 ?Additional CDBG-CV Requirements? of the Funding Approval/ Agreement states the program is subject to various reporting requirements under the Federal Funding Accounting and Transparency Act. In addition, the City should monitor their subrecipients to ensure they are following the direction of the grant. This count be done by on site visitation or reviewing the subrecipients single audit, if applicable. ? Condition: Per review of grant documents and per conversation with the City staff, the City did not comply with the reporting requirements under the Federal Funding Accounting and Transparency Act and subrecipient monitoring has not been performed. ? Effect: The City is not in compliance with the Federal Funding Accounting and Transparency Act as required by the grant application or monitoring subrecipients receiving gran funding ? Cause: The City overlooked these requirements as the subrecipients were only set to receive a one-time award with the grant funds. ? Identification as a repeat finding: No. ? Recommendation: We recommend the City to follow the Grant requirement regardless whether it is just one-time funding or not. ? View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.

Corrective Action Plan

FEDERAL AWARD FINDINGS - CURRENT YEAR ?Finding reference number: 2022-001?Assistance Listing Number: 14.218?Assistance Listing Title: Community Block Development Grant Coronavirus (COVID19)?Name of Federal Agency: Department of Housing and Urban Development.?Fiscal Year of Initial Finding: 2022?Name(s) of the contact person: Marissa Duran?Corrective Action Plan: The City is going to send the monitoring letter to the subrecipient as soon as possible. Also going forward, we have notified the program manager and her supervisor of this requirement for both continuous and one-time subrecipients. ?Anticipated Completion Date: June 30, 2023

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $1.56M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.17M
20.106 Airport Improvement Program $268,520
20.600 State and Community Highway Safety $65,947
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $38,365
93.011 National Organizations of State and Local Officials $24,999
16.034 Coronavirus Emergency Supplemental Funding Program $21,435
97.067 Homeland Security Grant Program $15,129
16.738 Edward Byrne Memorial Justice Assistance Grant Program $11,536
16.726 Juvenile Mentoring Program $7,972
14.239 Home Investment Partnerships Program $6,244