Finding 503189 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-10-21
Audit: 325285
Organization: City of Manhattan, Kansas (KS)
Auditor: Bt&co P A

AI Summary

  • Core Issue: One FFATA report for the Community Development Block Grant Program was not filed on time.
  • Impacted Requirements: Compliance with 2 CFR 200.303 and 2 CFR Part 170 is lacking due to inadequate internal controls and oversight.
  • Recommended Follow-Up: The City should maintain its tracking process for timely FFATA report submissions to ensure compliance.

Finding Text

Federal Program – Community Development Block Grant Program (Assistance Listing No. 14.218), U.S. Department of Housing and Urban Development. Condition – During the testing of the Federal Funding Accountability and Transparency Act (FFATA) compliance requirement under the Community Development Block Grant Program (ALN 14.218), one report tested was not filed timely. Criteria – 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Cause – The untimely filing of the FFATA report was due to an oversight and not having this requirement as part of written procedures. Effect – Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Recommendation – We recommend that the City continue with the process implemented during the fiscal year, that includes tracking the timely submission of the FFATA reports.

Corrective Action Plan

Management’s Response (Unaudited) – The Community Development staff is in the process of preparing all outstanding FFATA reports and is developing a compliance checklist to ensure that these reports are filed timely. Corrective Action Plan (Unaudited) – The Community Development staff will create a checklist to ensure that these reports are filed timely once the agreements with the subrecipients have been approved.

Categories

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 503190 2022-002
    Material Weakness
  • 503191 2022-002
    Material Weakness
  • 503192 2022-002
    Material Weakness
  • 503193 2022-002
    Material Weakness
  • 1079631 2022-002
    Material Weakness
  • 1079632 2022-002
    Material Weakness
  • 1079633 2022-002
    Material Weakness
  • 1079634 2022-002
    Material Weakness
  • 1079635 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $832,109
59.075 Shuttered Venue Operators Grant Program $262,878
93.575 Child Care and Development Block Grant $235,860
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $170,571
14.218 Community Development Block Grants/entitlement Grants $104,203
21.027 Coronavirus State and Local Fiscal Recovery Funds $56,763
12.600 Community Investment $27,952
14.231 Emergency Solutions Grant Program $20,238