FAC Explorer

Finding 544424 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351108
Organization: City of Portsmouth (OH)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The City of Portsmouth failed to report any subawards to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) during FY 2024.
  • Impacted Requirements: This noncompliance violates the reporting requirements set by the Federal Funding Accountability and Transparency Act (FFATA).
  • Recommended Follow-Up: The City should implement stronger procedures and internal controls to ensure timely and accurate reporting of all subawards to FSRS.

Finding Text

Prior Year Finding: 2023-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Entity: City of Portsmouth (the City) Federal Program: Community Development Block Grants/Entitlement Grants Assistance Listing: 14.218 Federal Award Identification Number and Year: 2018,2019,2020,2023 Pass-Through Entity: N/A Award Number and Period: B-18-MC-51-0018 (7/1/18-9/1/26) B-19-MC-51-0018 (7/1/19-9/1/27) B-20-MC-51-0018 (7/1/20-9/1/28) B-23-MC-51-0018 (7/1/23-9/1/30) Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance - Per the Federal Funding Accountability and Transparency Act (FFATA), prime (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). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control - Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The City of Portsmouth did not report subaward information to FSRS during FY 2024. Context: None of the ten subawards selected for testing were reported to FSRS during FY 2024. Total subawards selected were $50,000.00, and $-0- was reported as required by FFATA requirements. Transactions Subaward Report not Subaward Subaward Tested not reported timely amount missing key incorrect elements 1 1 0 0 0 Dollar Amount Subaward Report not Subaward Subaward of Tested not reported timely amount missing key Transactions incorrect elements $50,000.00 $50,000.00 $0 $0 $0 Cause: The City's procedures and controls were not sufficient to ensure that subawards were reported to FSRS during FY 2024. Effect: Subawards were not reported to FSRS in accordance with FFATA requirements. Questioned costs: None noted. Recommendation: We recommend the City establish procedures and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each subaward. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

FFATA Reporting Prior Year Finding: 2023-004 Recommendation: We recommend the City establish procedures and internal controls to ensure that all required sub awards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each sub award. Explanation of disagreement with audit finding: NO Action taken in response to finding: Review City’s policy, procedures, and internal controls to ensure the required sub awards and reported timely and accurately to FSRS. Name(s) of the contact person(s) responsible for corrective action: Jeffrey Crimer, Patrick Fletcher, & Kyera Pope. Planned completion date for corrective action plan: 06/30/25

Categories

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties HUD Housing Programs Material Weakness Reporting

Other Findings in this Audit

  • 544425 2024-002
    Material Weakness Repeat
  • 544426 2024-002
    Material Weakness Repeat
  • 544427 2024-002
    Material Weakness Repeat
  • 544428 2024-002
    Material Weakness Repeat
  • 544429 2024-003
    Significant Deficiency
  • 544430 2024-003
    Significant Deficiency
  • 544431 2024-003
    Significant Deficiency
  • 544432 2024-003
    Significant Deficiency
  • 544433 2024-004
    Significant Deficiency
  • 544434 2024-004
    Significant Deficiency
  • 544435 2024-004
    Significant Deficiency
  • 544436 2024-004
    Significant Deficiency
  • 544437 2024-005
    Significant Deficiency
  • 544438 2024-005
    Significant Deficiency
  • 544439 2024-005
    Significant Deficiency
  • 544440 2024-005
    Significant Deficiency
  • 544441 2024-005
    Significant Deficiency
  • 1120866 2024-002
    Material Weakness Repeat
  • 1120867 2024-002
    Material Weakness Repeat
  • 1120868 2024-002
    Material Weakness Repeat
  • 1120869 2024-002
    Material Weakness Repeat
  • 1120870 2024-002
    Material Weakness Repeat
  • 1120871 2024-003
    Significant Deficiency
  • 1120872 2024-003
    Significant Deficiency
  • 1120873 2024-003
    Significant Deficiency
  • 1120874 2024-003
    Significant Deficiency
  • 1120875 2024-004
    Significant Deficiency
  • 1120876 2024-004
    Significant Deficiency
  • 1120877 2024-004
    Significant Deficiency
  • 1120878 2024-004
    Significant Deficiency
  • 1120879 2024-005
    Significant Deficiency
  • 1120880 2024-005
    Significant Deficiency
  • 1120881 2024-005
    Significant Deficiency
  • 1120882 2024-005
    Significant Deficiency
  • 1120883 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $7.77M
10.555 National School Lunch Program $7.46M
84.027 Special Education Grants to States $4.16M
10.553 School Breakfast Program $3.21M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $2.59M
93.778 Medical Assistance Program $2.08M
93.558 Temporary Assistance for Needy Families $1.48M
93.667 Social Services Block Grant $1.36M
84.041 Impact Aid $964,119
93.659 Adoption Assistance $870,413
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $859,514
93.658 Foster Care Title IV-E $716,765
97.067 Homeland Security Grant Program $616,365
84.048 Career and Technical Education -- Basic Grants to States $524,526
16.575 Crime Victim Assistance $480,643
21.027 Coronavirus State and Local Fiscal Recovery Funds $412,603
14.218 Community Development Block Grants/entitlement Grants $411,278
14.267 Continuum of Care Program $399,910
84.424 Student Support and Academic Enrichment Program $366,727
93.568 Low-Income Home Energy Assistance $359,052
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $331,465
20.205 Highway Planning and Construction $314,256
84.047 Trio Upward Bound $295,425
10.558 Child and Adult Care Food Program $293,404
14.239 Home Investment Partnerships Program $259,785
84.173 Special Education Preschool Grants $222,891
84.002 Adult Education - Basic Grants to States $212,328
16.523 Juvenile Accountability Block Grants $198,748
93.959 Block Grants for Prevention and Treatment of Substance Abuse $173,427
93.958 Block Grants for Community Mental Health Services $151,066
97.044 Assistance to Firefighters Grant $133,045
84.425 Education Stabilization Fund $119,726
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $112,799
97.029 Flood Mitigation Assistance $110,769
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $98,627
97.042 Emergency Management Performance Grants $85,025
84.377 School Improvement Grants $81,541
93.556 Marylee Allen Promoting Safe and Stable Families Program $72,559
10.559 Summer Food Service Program for Children $62,194
93.788 Opioid Str $40,000
84.184 School Safely National Activities $29,326
93.472 Title IV-E Prevention Program $29,216
93.767 Children's Health Insurance Program $24,356
16.123 Community-Based Violence Prevention Program $23,896
93.150 Projects for Assistance in Transition From Homelessness (path) $23,589
16.738 Edward Byrne Memorial Justice Assistance Grant Program $17,791
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $15,123
84.365 English Language Acquisition State Grants $12,425
93.747 Elder Abuse Prevention Interventions Program $8,318
20.600 State and Community Highway Safety $8,124
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $7,094
93.603 Adoption and Legal Guardianship Incentive Payments Program $4,497
93.090 Guardianship Assistance $1,943
93.599 Chafee Education and Training Vouchers Program (etv) $1,408
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1,299