Finding 498900 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-27

AI Summary

  • Core Issue: The City missed deadlines for FFATA reporting, submitting two reports late in June 2023.
  • Impacted Requirements: Reports for subawards over $30,000 must be submitted by the end of the month following the obligation date.
  • Recommended Follow-Up: Update policies to ensure timely and accurate reporting to avoid future noncompliance and funding issues.

Finding Text

AL#: 14.241 Housing Opportunities for Persons with AIDS Grant Program Award Year: 2023 Criteria: Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109- 282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred to as “FFATA” that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The subawards are required to be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Applicable subaward obligations/modifications are required to be reported. Condition: FFATA reporting was due no later than March 31, 2023, (for the Charleston County Human Services Commission Subaward) and no later than April 30, 2023, (Pastors Subaward). These two (2) reports were ultimately submitted by the City in June of 2023. The FFATA reporting for the Pastors Subaward did not include a $10,000 contract amendment, this was corrected by amending the report. Context: We addressed the matter with City management who are aware of the reporting requirements. Effect: Failure to properly review and adhere to policies and procedures related to reporting can lead to noncompliance as well as the withholding of future awards and funds drawdowns by the awarding agency. Cause: Management oversight. Recommendation: We recommend the City review and update its policies and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts.

Corrective Action Plan

The City of Charleston will implement internal controls and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 498901 2023-002
    Significant Deficiency
  • 1075342 2023-001
    Significant Deficiency
  • 1075343 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.74M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $5.21M
20.933 National Infrastructure Investments $2.58M
11.307 Economic Adjustment Assistance $1.93M
14.218 Community Development Block Grants/entitlement Grants $1.32M
14.241 Housing Opportunities for Persons with Aids $1.21M
14.239 Home Investment Partnerships Program $374,193
93.889 National Bioterrorism Hospital Preparedness Program $300,044
97.056 Port Security Grant Program $279,785
11.473 Office for Coastal Management $186,261
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $177,486
20.205 Highway Planning and Construction $78,197
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $73,950
97.067 Homeland Security Grant Program $60,336
16.922 Equitable Sharing Program $43,628
97.039 Hazard Mitigation Grant $42,554
16.575 Crime Victim Assistance $41,010
16.738 Edward Byrne Memorial Justice Assistance Grant Program $29,171
10.559 Summer Food Service Program for Children $28,602
94.013 Americorps Volunteers in Service to America 94.013 $6,833
45.025 Promotion of the Arts Partnership Agreements $5,500
93.959 Block Grants for Prevention and Treatment of Substance Abuse $2,700
15.904 Historic Preservation Fund Grants-in-Aid $1,359