Finding 962539 (2023-001)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant Assistance Listing Number: 14.218 Federal Award Identification Number: B22MC330003 Pass‐Through Agency: N/A Pass‐Through Number(s): N/A Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (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 and Context: We identified the following in our testing: 3 of 3 original subawards were not reported timely 1 of 3 original subawards reported actual expenses as opposed to contract award value 2 of 2 subaward amendments were not reported timely Questioned costs: None Cause: The City’s procedures were not sufficient to ensure full compliance with FFATA reporting requirements. Effect: Subawards were not reported timely or accurately in accordance with FFATA requirements. Repeat Finding: No. Recommendation: We recommend the City enhance internal controls and procedures to comply with all FFATA reporting requirements. Views of responsible officials: Management agrees with the finding.