Finding 496315 (2023-003)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-09-10
Audit: 319207
Organization: City of Rialto (CA)

AI Summary

  • Core Issue: The City failed to submit required FFATA reports for subawards over $30,000 for the fiscal year ending June 30, 2023.
  • Impacted Requirements: Noncompliance with FFATA reporting obligations, which mandates timely reporting of subawards.
  • Recommended Follow-Up: Implement procedures to ensure all federal reporting requirements are met, including timely preparation and submission of reports.

Finding Text

FFATA Reporting Significant Deficiency/Noncompliance Federal Award Information Assistance Listing Number: 14.218 Program Title: Community Development Grant Federal Award Number: B-22-MC-06-0571, B-21-MC-06-0571 Federal Award Year: 2021-2022 Name of Federal Agency: U.S. Department of Housing and Urban Development Criteria: The City is required under the FFATA to report subawards greater than or equal to $30,000 using the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) by the end of the month following the month in which the subaward was made. Condition: The City did not prepare the FFATA reports for the fiscal year ended June 30, 2023. Cause of Condition: The City was not aware that the FFATA reporting requirements were applicable. Effect or Potential Effect of Condition: The City did not comply with the reporting requirements of the FFATA. Questioned Costs: No questioned costs were identified ($0). Context: The subrecipient agreements greater than $30,000 were signed and implemented during the fiscal year 2022-23, but the City did not file the necessary FFATA report. Repeat Finding: Yes Recommendation: We recommend that the City continue to implement procedures and controls to identify required reports and reporting deadlines and to verify that all reports required by the federal agencies are prepared, reviewed, approved, and filed with the agency in a timely manner. Management’s Response and Corrective Action: The City acknowledges LSL’s recommendation and will incorporate the recommendation in the next fiscal year.

Corrective Action Plan

FFATA Reporting Federal Award Information Federal Agencies: U.S. Department of Housing and Urban Development Program Title: Community Development Block Grants/Entitlement Grants Award Numbers: B-22-MC-06-0571, B-21-MC-06-0571 Award Years: 2021-2022 Name of Contact Person: Margaret Herrero, Deputy Director of Finance Corrective Action: The City will include the review of the FFATA reports in their preparation of the CDBG reports and ensure that the FAATA reports are prepared and submitted in a timely manner when subcontracts exceed the $30,000 threshold. Proposed Completion Date: Fiscal Year ended June 30, 2024.

Categories

Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 496316 2023-003
    Material Weakness Repeat
  • 1072757 2023-003
    Material Weakness Repeat
  • 1072758 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $374,287
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $147,950
20.616 National Priority Safety Programs $96,847
16.034 Coronavirus Emergency Supplemental Funding Program $95,193
16.710 Public Safety Partnership and Community Policing Grants $81,859
21.027 Coronavirus State and Local Fiscal Recovery Funds $57,470
16.783 Justice Assistance Grant $28,773
97.067 Homeland Security Grant Program $20,849