Finding 622867 (2022-003)

Criteria: The U.S. Department of Housing and Urban Development established reporting requirements for local governments. These requirements established methods for reporting Federal Funding Accountability and Transparency Act information. Condition: We performed tests to determine if the City was in compliance with reporting requirements for the federal program. The City is required to report specific data about subrecipients and subawards in the sub-award reporting system. Context: The City did not report any subrecipient (subaward) information during 2022. Cause: There was a misunderstanding by City program management. Program management did not file FFATA reports because HUD did not conduct monitoring of this requirement and program management thought this meant the requirement was not applicable to them. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City enhance its internal controls over the reporting requirements of the CDBG program by reviewing the U.S. Department of Housing and Urban Development?s federal guidance for reporting.