Finding 523467 (2024-002)

2024-002 Housing Opportunities for Persons with AIDS Assistance Listing Number 14.241 U.S. Department of Housing and Urban Development Criteria or Specific Requirement – Reporting – Under the requirement 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 the “Transparency Act” 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) Condition – The Corporation did not report the subaward information for the fiscal year ended June 30, 2024. Questioned Costs – N/A Context – One of the Corporation’s ten subawards was initially selected for testing under the program. The Corporation did not report the subaward information for the approximately $779,000 passed through to sub recipient in fiscal year 2024. The sample was not intended to be, and was not, a statistically valid sample. Upon further discussion and analysis, the Corporation did not report the subaward information for any of the subawards, which totaled approximately $2,380,000 in fiscal year 2024. Effect – The Corporation did not report the subaward information as required. Prior Year Auditing Finding – N/A Cause – The Corporation did not have adequate controls or procedures in place to identify the applicable reporting requirements and ensure the information was filed accurately and timely. Recommendation – We recommend the Corporation implement policies and procedures to ensure required reports are completed and filed by their respective due dates as required by the grant agreement and Uniform Guidance.