Finding 6225 (2023-002)

2023‐002: U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grant, Assistance Listing #14.218 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under Assistance Listing 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000. Condition: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). Cause: The City of Sparks did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Effect: Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Questioned Costs: None Context/Sampling: The entire population of one subaward, entered into during the year was subject to FFATA reporting requirements and selected for testing. The quantity and subaward obligation errors were noted as follows: Subawards Obligations Total Tested 1 $231,252 Not Reported 1 $231,252 Not Timely 1 $231,252 Obligation Incorrect 1 $231,252 Missing Key Elements 1 $231,252 Repeat Finding from Prior Year: No Recommendation: Views of Responsible Officials: We recommend the City implement internal controls to ensure subaward information is submitted in accordance with the FFATA. The City of Sparks agrees with this finding.