Finding 60630 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-04
Audit: 52110
Organization: City of Irvine (CA)

AI Summary

  • Core Issue: The City failed to file a required FFATA report for a subaward exceeding $30,000.
  • Impacted Requirements: Compliance with FFATA sub-award reporting requirements for federal grants over $30,000.
  • Recommended Follow-Up: Establish policies to ensure timely FFATA reporting for all applicable subawards.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 ? Emergency Rental Assistance Program Federal Award Identification Number and Year: 20-0150-0-1-604, fiscal year 2021-2022 Assistance Listings Number: 21.023 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: Reporting: Prime recipients awarded a federal grant greater than or equal to $30,000 are subject to Federal Funding Accountability and Transparency Act (FFATA) sub-award reporting requirements as outlined in the Office of Management and Budgets guidance issued August 13, 2020. The prime recipient is required to file a FFATA subaward report 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. Condition: The City is a prime recipient and provided subawards totaling $1,538,641 to one recipient, with one subrecipient over the $30,000 reporting threshold. No FFATA report was filed for this recipient. Questioned costs: None Context: The City is a prime recipient and provided subawards totaling $1,538,641 to one recipient, which is over the $30,000 reporting threshold. No FFATA report was filed for this recipient. Cause: The City was not aware that the FFATA reporting requirements applied to this Federal award. Effect: The City was not in compliance with the FFATA reporting requirements. Repeat Finding: No. Recommendation: We recommend the City implement policies and procedures to ensure that FFATA reporting occurs for all subawards of $30,000 or more for all federal awards. View of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

City of Irvine respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: CliftonLarsonAllen LLP 2875 Michelle Drive, Suite 300 Irvine, CA 92606 Audit Period: July 1, 2021 ? June 30, 2022 Significant Deficiency in Internal Control over Compliance and Other Matter: 2022 ? 001 Recommendation: We recommend that the City implement policies and procedures to ensure that FFATA reporting occurs for all subawards of $30,000 or more for all federal awards. Action Taken: The City works with a consultant that provides the FFATA reporting for all Department of Housing and Urban Development grants. The City is updating its grant procedures to include a new process to file the FFATA report for all federal grants that have subawards of $30,000 or greater. For any questions regarding this plan, please contact me at 949-724-6031 or email twashle@cityofirvine.org.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 637072 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $56.43M
21.023 Emergency Rental Assistance Program $8.25M
14.218 Community Development Block Grants/entitlement Grants $591,284
16.922 Equitable Sharing Program $221,984
14.231 Emergency Solutions Grant Program $205,544
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $172,994
14.239 Home Investment Partnerships Program $102,842
20.600 State and Community Highway Safety $73,708
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $68,385
21.000 Equitable Sharing Program $51,270
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $36,035
93.053 Nutrition Services Incentive Program $35,743
20.205 Highway Planning and Construction $21,120
97.042 Emergency Management Performance Grants $13,771
97.067 Homeland Security Grant Program $1,211
16.738 Edward Byrne Memorial Justice Assistance Grant Program $999