Finding Text
Finding Number: 2023‐001
Repeat Finding: No
Program Name/Assistance Listing Title: CDBG – Entitlement Grants Cluster
Assistance Listing Number: 14.218
Federal Agency: Department of Housing and Urban Development
Federal Award Number: N/A
Pass‐Through Agency: N/A
Questioned Costs: N/A
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirement: Reporting
Criteria
Under 2 CFR §200.303, the Town is required to establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the Town is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Further, 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, that are codified in 2 CFR Part 170, 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 Town did not report first‐tier subawards of $30,000 or more to the FSRS as required by the Transparency Act.
Cause
The Town was unaware that such subawards were required to be reported through the FSRS.
Effect
The Town was not in full compliance with federal reporting requirements.
Context
During fiscal year 2023, the Town made four first‐tier subawards of over $30,000 to subrecipients. The Town did not report any of the subawards to the FSRS.
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation
The Town should implement controls and procedures to ensure that all federal reporting requirements are tracked and necessary reports submitted.
Views Of Responsible Officials
See Corrective Action Plan.