Finding Text
FEDERAL PROGRAM (ALN 14.218) COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AWARD NUMBER B21MC72001 (Federal Award Year 2021) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CRITERIA In accordance with 2 CFR Appendix A to Part 170, I(a), unless a recipient of grants or cooperative agreements is exempt, they are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION As part of our audit procedures, the Municipality include information from contractors instead of subrecipient in the report submitted June 30, 2022. QUESTIONED COSTS Not Applicable PERSPECTIVE INFORMATION We received from the Municipality the report made for the month of June 30, 2022. We noted that they included all contracts from vendors, instead of Federal awards made to a subrecipient under which the total funding is anticipated to be equal or exceed $30,000 in Federal funding. The total transactions examined were five (5) contracts with vendors in the amount of $271,032. STATEMENT OF CAUSE Municipality staff had the understanding that they must include all contracts or purchase orders greater than $30,0000 in the FFATA report. POSSIBLE ASSERTED EFFECT The Municipality is in non-compliance with the requirements to report through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) platform. This breach does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is not a repeated Finding. RECOMMENDATIONS We recommend that the Municipality provide training and technical assistance to the personnel that prepares and submits the contracts that meet the requirements to be reported on the FSRS portal. In addition, controls should be in place in order to be able to keep track of the type of contract they need to report.