Finding Text
Federal Agency: U.S. Department of Housing & Urban Development (HUD)
Federal Program Name: Community Development Block Grants/Entitlements Grants
Assistance Listing Number: 14.218
Federal Award Identification Number and Year: B-21-MC-06-0003/B-21-UC-06-0005/2021
Award Period: January 1, 2022, to December 31, 2022
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Condition: The Agency did not submit the required Federal Funding Accountably and Transparency Act report for the first-tier subawards from funding received under the program.
Criteria or specific requirement: 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, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, recipients (i.e., 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).
Questioned Costs: None
Effect: Noncompliance with reporting requirements for the federal program.
Context: Federal Funding Accountability and Transparency Act reporting was not submitted related to first-tier subrecipients.
Cause: The program manager did not know that additional reporting was required.
Repeat Finding: Yes
Recommendation: We recommend that the Agency provide additional training to program managers regarding the documentation of program compliance requirements and the development of internal controls to ensure that all compliance requirements are met.
Views of responsible officials: There is no disagreement with the audit finding.