Finding Text
2022 ?003- FFATA Reporting Federal agency: U.S. Department of Housing and Urban Development Federal program title: Community Development Block Grant Federal Award Identification Number and Year: B-17-UC-12-0007, B-18-UC-12-0007, B-19-UC-12-0007, B-20-UC-12-0007, B-21-UC-12-0007, and B-20-UW-12-0007 Assistance Listing Number: 14.218 Award Period: October 2017 through September 2028 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The reporting requirements under the CDBG Entitlement Cluster include financial reporting, performance reporting, and special reporting for Federal Funding Accountability and Transparency Act (FFATA). Reports are to be completed and submitted within the prescribed time period noted in each contract agreement term. The requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) are referred 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: There are 27 subrecipient agreements over the FFATA reporting threshold of $30,000 under the CDBG program. The auditors made a sample selection of 7 awards for testing. The 7 selected subaward contracts were tested against data reported in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). As reflected in the chart, there were 4 contract agreements that were not reported in FSRS. Of the remaining 3 contracts that were reported in FSRS, 2 had incorrect contract value amounts and all 3 had additional key element data inputs with errors. Questioned costs: None Context: In a statistically valid sample of 7 subrecipient contracts, the chart below illustrates the results. Transactions Tested Subaward not Reported Report not Timely Subaward Amount Incorrect Subaward Missing Key Elements Count 7 4 3 2 3 Dollar Value $1,626,363 $328,113 $1,298,250 $410,000 $1,298,250 Cause: The full extent of the FFATA reporting requirements under this grant were not properly understood by all applicable members of the grant team. Effect: The intent of FFATA subaward reporting is to provide a single searchable website that contains information on all Federal awards. The reports are submitted through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A failure to report the subawards can cause inaccurate information to be reported on and used by decision makers. In addition, the grantor could hold back payment near the close out if compliance is not satisfied. Repeat Finding: Yes-see 2021-002 Recommendation: We recommend the County's management reviews applicable award agreements or contracts for specific reporting requirements and establishes a reporting calendar for review and approval. We recommend the assigned personnel performing the inputs into FSRS obtain proper training of the system to ensure accuracy of data reported. We recommend knowledgeable supervisors review and approve reports for completeness and accuracy, including comparing to source documentation (general ledger, third party evidence or other reliable records) and any reconciliations between source data to final reporting. Views of responsible officials: There is no disagreement with the audit finding.