Colorado Housing and Finance Authority

Federal program: ALN 21.011 - Capital Magnet Fund Federal award grant numbers and years: 211CM058790 - 2021; 201CM055174-2020 Federal agency: Department of Treasury - Community Development Financial Institutions Pass-through entity: None Criteria: The Authority is required to comploy with 2 CFR Subpart D 200.300 (b) which indicates that a non-Federal entity is responsible for complying with Federal Funding Accountability and Transparency Act (FFATA). FFATA requires prime grant recipients to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. Condition: During our testing of the reporting requirements, we noted subawards to subrecipients where the FFATA sub-award report was not filed timely. The amount of subawards required to be reported were $1,985,000. Subsequent to year end, the Authority prepared and submitted the FFATA sub-award reports. Cause: The Authority did not realize the FFATA reporting requirement was in addition to the performance reporting that the Authority was in compliance with and and adhering to. Effect: Potential loss or suspension of grant funding. Questioned costs: None Prevalance: The population of first-tier subawards subject to reporting requirements included in subawards. The sample size of two was determined using guidance in the American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guide - Government Auditing Standards and Single Audits. Our sample was not a statistical sample. Recommendation: We recommend the Authority implement procedures to comply with the requirements of FFATA. View of responsible officials of the auditee: Management agrees with the above finding and our response is included in the corrective action plan.