Finding 968155 (2023-002)

Federal Program Emergency Rental Assistance Program, AL 21.023 Criteria Per 2CFR200.332, the City is to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition During the audit, we noted the most recent subrecipient monitoring procedures were performed from August 2022 through January 2023 over payments made to recipients from July 2021 through August 2022. Only two payments included in the monitoring sample were within fiscal year 2023. Because the first advance to the subrecipient for fiscal year was made in July 2022, we were unable to determine that the two payments are a result of the City's fiscal year 2023 expenditures. No monitoring procedures were performed over the remainder of the months in the fiscal year, therefore resulting in discrepancies in the submitted quarterly reporting. Cause The City did not have controls in place to subrecipient monitoring was performed in a timely manner. Identification as a Repeat Finding This is not a repeat finding Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs None. Context/Sampling The most recent subrecipient monitoring performed was selected to review. This accounted for $5,057,447 of federal expenditures. Recommendation We recommend the City implement a tracking system to remind staff to perform monitoring procedures in a timely manner. Management’s Response See Corrective Action Plan.