Finding 518889 (2024-001)

Federal Agency - United States Department of the Treasury Federal Program - Coronavirus State and Local Fiscal Recovery Funds (21.027) Federal Award Year - 2021 State Agency - None Reference: 2024-001 Criteria - Code of Federal Regulations §200.332 lists the requirements that must be clearly identified to subrecipients. Condition - The subrecipients may not have a full understanding of the Federal program. Key information, including identifying the assistance listing number, was not identified on the award letters given to the subrecipients. Cause - The award letters to the subrecipients did not include all required information. Effect of Condition - Subrecipients do not have all the relevant information and, therefore, may not comply with Federal program requirements. Questioned Costs - None. Perspective - Noted that award letters given to the tested subrecipients were missing key information, including identifying the assistance listing number. Recommendation - We recommend that the City revise its grant award letters to be in compliance with Code of Federal Regulations §200.332. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Management's  Response - The City recognizes that the requirement of providing the identifying assistance listing number was not provided on certain ARPA contracts awarded through the Department of Recreation and Human Services. It is the City's practice to include this information in all contracts where federal funds are awarded. In November of 2024 when it was identified that there were a number of subrecipients that had not been notified of this required information, the Department of Recreation and Humans Services emailed all subrecipients who had not previously been provided this information. In order to prevent this requirement from being overlooked in the future, the Law Department has also been informed of this requirement. The Law Department is in the approval process for all contracts and will not provide their approval until this requirement is met.