CITY OF JURUPA VALLEYState Government

SA2024-001: Lack of preparing and submitting the report based on Federal Funding Accountability and Transparency Act (FFATA) Assistance Listing Numbers: 14.218 Assistance Listing Title: CDBG Entitlement Grants Cluster Name of Federal Agency: U.S. Department of Housing and Urban Development Criteria: Per 2 CFR 200.329(b), reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with program requirements. For direct recipients of grants or cooperative agreements who make first-tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) and report subaward date. Condition: The City failed to prepare and submit the FFATA report through FSRS. Cause: The City’s internal controls did not ensure the FFATA reporting was completed in accordance with governing requirements. Effect: Information was not reported to the federal awarding agency. Recommendation: We recommend the City enhance internal controls to ensure FFATA reporting is prepared in accordance with program requirements. Management Response: The City hired a new senior accountant that would be assigned to ensure that required reports from various agencies filed timely.

Federal Agency: U.S. Department of Housing and Urban Development Federal Financial Assistance Listing: 14.218 Program Name: CDBG Entitlement Grants Cluster Award No. and Year: 2021 B-21-MC-0607 and 2020 B-20-MW-06-0607 Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance, Instance of Non-compliance Criteria: 2 CFR 200.329(b) requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with program requirements. For direct recipients of grants or cooperative agreements who make first-tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) and report subaward date through FSRS. The City must report the following items: ? All subaward obligations/modifications that have been reported ? Subaward date ? Subrecipient DUNS number ? Amount of subaward ? Subaward obligation/action date ? Date of report submission ? Subaward number Condition: FFATA reporting was not completed through FSRS. Cause: The City?s internal controls did not ensure the FFATA reporting was completed in accordance with governing requirements. Effect: Information was not reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: The entire population of one subrecipient who received in excess of $30,000 was selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend the City enhance internal controls to ensure FFATA reporting is prepared in accordance with program requirements. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.

The following findings represent significant deficiencies and/or instances of noncompliance, including questioned costs, required to be reported in accordance with 2 CFR 200, Subpart F. Finding 2020-004 Award No. and Year: B-18-MC-06-0607 & B-19-MC-06-0607, FY 19-20 Compliance Requirements: Reporting ? Performance Reporting (HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income Persons) Type of Finding: Significant Deficiency in Internal Control and Instance of Non-Compliance Criteria: The Uniform Guidance Compliance Supplement requires that each recipient that administers covered public and Indian housing assistance, regardless of the amount expended, and each recipient that administers covered housing and community development assistance in excess of $200,000 in a program year, must submit HUD 60002 information using the automated Section 3 Performance Evaluation and Registry System (SPEARS). Condition: While the City prepared the report, the performance reporting requirement to submit an annual HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income Persons did not occur in a timely manner prior to the audit. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A sample of 1 was selected for testing of Annual Performance Reporting. Repeat Finding from Prior Year: No. Effect: Failure to follow performance reporting requirements results in noncompliance with federal regulations. Cause: The condition was primarily caused by technical issues the City encountered while attempting to submit the performance report through SPEARS. Recommendation: We recommend that the City review its established policies and procedures regarding the reporting process to ensure that required reports are submitted timely, in accordance with Federal requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees. See separately issued Corrective Action Plan.