Audit 314590

Finding # 2023-001 – Reporting Type of Finding Significant Deficiency in Internal Control and Noncompliance ALN Title Economic Development Assistance ALN 11.307 Total Federal Expenditures $761,377 Federal Award Numbers ED22HDQ3070044, 07-79-07888, 07-79-07889, 07-79-07901, 07-79-07903, 07-79-07905 Federal Award Year October 1, 2022 through September 30, 2023 Federal Agency U.S. Department of Commerce – Economic Development Administration Criteria 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart D section 200.300 and section 200.328 set forth requirements for reporting on award amounts by grantees. Southeast Conference (SEC) was awarded a direct federal grant greater than or equal to $30,000 and was therefore subject to Federal Funding Accountability and Transparency Act (FFATA) sub-award reporting requirements as outlined in the Office of Management and Budgets guidance issued August 13, 2020. As such, SEC was required to file a FFATA sub-award report by the end of the month following the month in which SEC awarded any sub-grant greater than or equal to $30,000 (Pub. L. No. 109-282 [FFATA] and Pub. L. No. 113-101 [DATA Act]). Condition and Context SEC did not submit timely or accurate reports to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) for its subawards as required by FFATA guidance. Questions Costs None. Effect SEC did not comply with the reporting requirements of Uniform Guidance and FFATA. Cause SEC’s internal controls over reporting were not sufficiently designed and implemented to ensure that staff were fully knowledgeable on when and how to report subaward amounts under FFATA. Recommendation SEC should provide training to staff for preparation of financial reports and design and implement systems to accurately and timely report subawards.

Finding # 2023-001 – Reporting Type of Finding Significant Deficiency in Internal Control and Noncompliance ALN Title Economic Development Assistance ALN 11.307 Total Federal Expenditures $761,377 Federal Award Numbers ED22HDQ3070044, 07-79-07888, 07-79-07889, 07-79-07901, 07-79-07903, 07-79-07905 Federal Award Year October 1, 2022 through September 30, 2023 Federal Agency U.S. Department of Commerce – Economic Development Administration Criteria 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart D section 200.300 and section 200.328 set forth requirements for reporting on award amounts by grantees. Southeast Conference (SEC) was awarded a direct federal grant greater than or equal to $30,000 and was therefore subject to Federal Funding Accountability and Transparency Act (FFATA) sub-award reporting requirements as outlined in the Office of Management and Budgets guidance issued August 13, 2020. As such, SEC was required to file a FFATA sub-award report by the end of the month following the month in which SEC awarded any sub-grant greater than or equal to $30,000 (Pub. L. No. 109-282 [FFATA] and Pub. L. No. 113-101 [DATA Act]). Condition and Context SEC did not submit timely or accurate reports to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) for its subawards as required by FFATA guidance. Questions Costs None. Effect SEC did not comply with the reporting requirements of Uniform Guidance and FFATA. Cause SEC’s internal controls over reporting were not sufficiently designed and implemented to ensure that staff were fully knowledgeable on when and how to report subaward amounts under FFATA. Recommendation SEC should provide training to staff for preparation of financial reports and design and implement systems to accurately and timely report subawards.