Finding 519848 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-01-21
Audit: 339091
Organization: City of Council Bluffs (IA)

AI Summary

  • Core Issue: Subaward information was not reported in the FSRS on time, violating federal reporting requirements.
  • Impacted Requirements: Timely reporting of subawards and amendments is crucial for transparency and accountability in government spending.
  • Recommended Follow-up: Improve procedures to ensure subaward reporting is completed within 30 days of execution to meet federal standards.

Finding Text

Assistance Listing Number 14.218 CDBG Entitlement/Special Purpose Grants Cluster Department of Housing and Urban Development, Award Number B-22-MC-19-0005 Department of Housing and Urban Development, Award Number B-23-MC-19-0005 Criteria or specific requirement – Subaward agreements, amendments, and modifications that are at or above the subaward reporting requirement under Title 2 of the Code of Federal Regulations must be reported in in the Subaward Reporting System (FSRS) no later than the last day of the month following the month is which the subaward or subaward amendment obligation was made. Condition – Subaward information was not reported in FSRS within the required time frame. Questioned costs – None. Context – Subaward agreements and modifications were obligated during fiscal year 2024 to which the FFATA requirements applied. Of the one subaward and modification tested, none were submitted in a timely manner. Sampling was not a statistically valid sample. Effect – Reporting provides information to the public to hold the government accountable for each spending decision and assist with reducing wasteful spending. Untimely reporting does not provide an accurate detail of government spending. Cause – Federal awards are awarded by the federal agency late in the calendar year with effective dates of January 1 of the same year. This results in subawards being obligated late in the calendar year after the grant has been awarded to the City. The City reported subaward information in FSRS before the calendar year ended. Recommendation – We recommend that procedures related to the reporting of subaward information in FSRS be improved to provide timely reporting. View of responsible officials – Housing and Economic Development Staff will update its internal policy to submit FFATA with 30 days of the final execution of the CDBG annual budget, Annual Action Plan, and subaward agreements, along with any amendments to these listed agreements. The original agreements typically happen in October and will be completed by November to meet the standard of submitting within 30 days of allocation. We will also review amendments to ensure they are also filed within 30 days of execution.

Categories

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles

Other Findings in this Audit

  • 519847 2024-001
    Material Weakness
  • 1096289 2024-001
    Material Weakness
  • 1096290 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.32M
20.205 Highway Planning and Construction $1.00M
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $220,441
21.026 Homeowner Assistance Fund $84,775
16.738 Edward Byrne Memorial Justice Assistance Grant Program $57,895
20.600 State and Community Highway Safety $26,119
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $23,388
14.905 Lead Hazard Reduction Demonstration Grant Program $21,837
14.218 Community Development Block Grants/entitlement Grants $17,247
95.001 High Intensity Drug Trafficking Areas Program $7,886
16.607 Bulletproof Vest Partnership Program $4,800