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.
Repeat finding – Yes, Finding 2022-002
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.
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.