FAC Explorer

Finding 61315 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-04-03
Audit: 54171
Organization: City of Carrollton, Texas (TX)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The City failed to report subawards over $30,000, totaling approximately $429,000, as required by the Transparency Act.
  • Impacted Requirements: Compliance with 2 CFR Part 170, which mandates reporting of first-tier subawards to the Federal Funding Accountability and Transparency Act Subaward Reporting System.
  • Recommended Follow-Up: Management should establish and enforce policies to ensure timely and accurate reporting of all required subawards.

Finding Text

Program: CDBG ? Entitlement Grants Cluster Assistance Listing Number: 14.218 Compliance Requirement: Reporting Federal Agency: Department of Housing and Urban Development Criteria or Specific Requirement: Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred to 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: The City did not report the subaward information for the fiscal year ended September 30, 2022. Questioned Costs: N/A Context: One of the City?s two subawards was initially selected for testing under the program. The City did not report the subaward information for the approximately $419,000 passed through to the sub recipient in fiscal year 2022. The sample was not intended to be, and was not, a statistically valid sample. Upon further discussion and analysis, the City did not report the subaward information for any of the subawards, which totaled approximately $429,000 in fiscal year 2022. Effect: The City did not report the subaward information as required. Cause: The City did not have adequate controls or procedures in place to identify the applicable reporting requirement and ensure the information was filed accurately and timely. Identification as a Repeat Finding: N/A Recommendation: Management should implement policies and procedures to ensure required reports are completed and filed by their respective due dates as required by the grant agreement and Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding. See separate report for planned corrective actions

Corrective Action Plan

Re: Qualified Opinion ? CBDG-Entitlement Grants Cluster Finding No 2022-001 To Whom It May Concern: The City of Carrollton acknowledges the Qualified Opinion on the CBDG-Entitlement Grants Cluster as stated in the Single Audit Report by FORVIS, Ltd., for Fiscal Year 2022. The requirement referred to as the ?Transparency Act? codified in 2 CFR Part 170, states 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). In response to the finding, the city has developed the following action plan: ? This Action Plan is effective immediately, March 29, 2023. ? Staff has identified the Senior Community Development Specialist as the person responsible for the implementation of this action plan. The Community Services Manager and Environmental Service Director will be points of contact for any escalation or back-up needs to the Senior Community Development Specialist. ? The reporting requirements have been added to the City?s CBDG policy and procedures (completed 03/30/2023) and create a standard operating procedure to prevent this loss of knowledge for future staff members. ? Staff has prepared and filed the late report for Carrollton fiscal year 2022 (CBDG program year 2021) as of March 29, 2023. ? Long-term compliance will include completing the report within 30 days of HUD?s approval of the annual Action Plan submission. Further, documentation of how to complete this process is already completed, the required information to complete the reports for the current subrecipient are already obtained, and we will incorporate this report into the current policies, procedures, and checklists where necessary to ensure the report is completed within the required timeframe. The staff has set internal review reminders on a monthly basis on staff calendars to ensure proper filing compliance. ? A copy of the submission will be maintained in the department?s file to ensure proper compliance documentation is kept.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 61316 2022-001
    Material Weakness
  • 637757 2022-001
    Material Weakness
  • 637758 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $11.97M
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $428,691
14.218 Community Development Block Grants/entitlement Grants $408,259
21.016 Equitable Sharing $140,192
97.067 Homeland Security Grant Program $39,404
16.922 Equitable Sharing Program $29,552
16.738 Edward Byrne Memorial Justice Assistance Grant Program $9,107
45.310 Grants to States $8,875