Finding Text
2024-002 – Federal Funding Accountability and Transparency Act (FFATA) Reporting
Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Reporting).
Federal program(s)
U.S. Department of Housing and Urban Development:
Community Development Block Grants/Entitlement Grants (ALN 14.218); Direct award; All project numbers.
Lead Hazard Reduction Grant Program (ALN 14.905); Direct award; All project numbers.
Criteria. Under the requirements of the Federal Funding Accountability and Transparency Act, 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). Direct recipients must report key data elements by registering through the FSRS and reporting subaward data through that system. Direct recipients that are awarded a federal grant are required to file a FFATA sub-award report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
Condition. The City did not submit the required key data elements through the FSRS reporting system as required by the Uniform Guidance.
Cause. The City does not have the proper internal controls in place to ensure that FFATA reporting is completed promptly in accordance with the requirements of the Uniform Guidance.
Effect. The City did not follow federal requirements for FFATA reporting through the FSRS and as a result has not completed the appropriate sub-award reporting that is required for direct recipients.
Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified.
Recommendation. We recommend that the City review its procedures for FFATA reporting through FSRS and ensure that all key data elements are reported timely moving forward.
View of Responsible Officials. The City acknowledges reporting has lapsed in this system. New procedures have been put in place to ensure reporting occurs in a timely manner and there is oversight of the reporting throughout the year. These procedures include additional questions on internal documents regarding potential subrecipients, as well as monitoring Commission agendas, and regular reporting reminders.
Responsible Officials. Revenue Services Director
Estimated Completion Date. June 30, 2025