Finding 575385 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-02
Audit: 365413
Organization: City of El Monte (CA)

AI Summary

  • Core Issue: The City failed to report first-tier subawards of $30,000 or more to the FSRS, violating federal requirements.
  • Impacted Requirements: Non-compliance with OMB guidelines and FFATA could lead to fines, penalties, or loss of federal funding.
  • Recommended Follow-up: Ensure timely FFATA report submissions by implementing new procedures before awarding sub-grants, with a completion target of June 30, 2025.

Finding Text

Finding No. SA 2024-001 – Reporting Federal Assistance Listing Number: 14.218 Federal Program Title: Community Development Block Grants/ Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Award Period: Fiscal year 2024 Criteria: Per OMB Compliance Supplement and Compliance and the requirements of the Federal Funding Accountability and Transparency Act (FFATA), 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 City was unable to report the first-tier subawards of $30,000 or more to the FSRS. Cause: No sufficient internal controls, policies, and procedures were in place to ensure that the timely submission of FFATA reports was completed for the first-tier subawards. Effect: Delayed/late and non-submission of the report is considered non-compliance with the program requirements and may result in fines and penalties as well as suspension or termination of the federal awards. Questioned Costs: None. Repeat Finding: No. Recommendation: We recommend that the City strictly follow the deadline for reporting submission set forth by the U.S. Department of Housing and Urban Development. Views of responsible officials and planned corrective actions: The Department has been informed and will implement a procedure to ensure that the FFATA reporting is completed before the sub-award is given to the subrecipient. The department will complete the corrective action plan by June 30, 2025.

Corrective Action Plan

The Department has been informed and will implement a procedure to ensure that the FFATA reporting is completed before the sub-award is given to the subrecipient. The department will complete the corrective action plan by June 30, 2025.

Categories

Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $14.63M
14.218 Community Development Block Grants/entitlement Grants $7.25M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.77M
16.922 Equitable Sharing Program $1.17M
21.027 Coronavirus State and Local Fiscal Recovery Funds $940,234
14.231 Emergency Solutions Grant Program $183,638
66.202 Congressionally Mandated Projects $179,326
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $160,893
21.016 Equitable Sharing $159,712
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $150,780
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $130,929
20.600 State and Community Highway Safety $97,845
97.067 Homeland Security Grant Program $64,632
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $38,516
93.053 Nutrition Services Incentive Program $17,288