Old Pueblo Community Services

Federal Agency: U.S. Department of Housing and Urban Development (“HUD”) Program Title: Community Development Block Grants Entitlement Grants Assistance Listing Number: 14.218 Federal Award Source: Pass-Through Pass-Through Entity: City of Tucson Pass-Through Identifying Number: 19412 Criteria – Under the requirements of 2 CFR, Part 200, Subpart 305, payment methods must minimize the time elapsing between the transfer of funds from the Federal agency and the disbursement of funds by the recipient. Condition – During our audit of the allowable cost requirements for the Organization’s awards, we noted the Organization incorrectly reported expenditures and revenue for a program expenditure, which resulted in billing occurring before the expenditures were incurred. Cause – The finding appears to be the result of an error in data entry and an internal control breakdown related to the review of the expenditure and related billing. Effect and Context – The Organization is not in compliance with the cash management requirements of its award and therefore, expenditures were billed prior to being incurred for one out of two samples. Our sample was a statistically valid sample. Questioned Costs – None noted. Recommendation –We recommend the Organization implement policies and procedures to ensure its compliance with the cash management requirements.

Federal Agency: U.S. Department of Health and Human Services (“DHHS”) Program Title: Substance Abuse and Mental Health Services Projects of Regional and National Significance Assistance Listing Number: 93.243 Federal Award Source: Direct Funding Pass-Through Entity: N/A Pass-Through Identifying Number: N/A Criteria – Under the requirements of the Federal Funding Accountability and Transparency Act (“FFATA”) (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). Condition – During our audit of the reporting requirements for the Organization’s subawards, we noted the Organization did not complete the necessary reporting to be in compliance with FFATA. Cause – The finding appears to be the result of an oversight and lack of understanding of FFATA reporting requirements. Effect and Context – The Organization is not in compliance with the reporting requirements of FFATA for its subrecipient and therefore, data regarding the Organization’s subaward is not publicly available as required. Questioned Costs – None noted. Recommendation –We recommend the Organization implement policies and procedures to ensure its compliance with the reporting requirements of FFATA. View of Responsible Officials - We agree with the finding and are in the process of updating our policies and procedures regarding FFATA reporting requirements. See our Corrective Action Plan for the year ended December 31, 2023 for additional detail.