City of Fond du Lac

Special Reporting for Federal Funding Accountability and Transparency Act Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant Assistance Listing Number ? 14.228 Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement: In accordance with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the Federal Funding Accountability and Transparency Act requires compliance with reporting requirements. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our audit testing, we noted that the City did not have adequate internal controls designed to ensure that reporting requirements were completed timely. Questioned Costs: None Context: While performing audit procedures, it was noted that the City did not report subawards to subrecipients in excess of $30,000 as required by the Federal Fund Accountability and Transparency Act. Cause: The City does not have a system of internal controls in place to ensure compliance over reporting requirements. Effect: The City is not in compliance with reporting requirements. The City awarded one subaward in excess of $30,000 and did not complete the special reporting required by the Federal Funding Accountability and Transparency Act timely. Recommendation: We recommend the City design and implement internal controls designed to ensure compliance with reporting requirements under the Federal Funding Accountability and Transparency Act. Views of Responsible Officials: There is no disagreement with the finding. The City will continue to review and enhance policies and procedures to ensure compliance in future years.