Audit 410534

Finding 2025-002: Federal Funding Accountability and Transparency Act Subaward Reporting Compliance Requirement: Reporting Type: Significant Deficiency in Internal Control over Compliance and Noncompliance Federal Awarding Agency: U.S. Department of Health and Human Services AL Numbers and Titles: 93.592 - Family Violence Prevention and Services/Discretionary Federal Award Number: 90EV0531 Questioned Costs: None Repeat Finding: No Criteria: The terms and conditions prescribed by 2 CFR Part 170 require a recipient to report each applicable first-tier subaward through the Federal Subaward reporting system no later than the end of the month following the month in which the subaward was issued. Additionally, 2 CFR § 200.303 requires recipients to establish, document, and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient manages the Federal award in compliance with applicable Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Caminar Latino, Inc. issued a subaward on December 3, 2024, with a reporting deadline of January 31, 2025. The subaward was not reported through the applicable FFATA subaward reporting system until June 8, 2026. We tested the complete population of two applicable subawards associated with the program during the audit period and identified one instance of untimely reporting. The other subaward was reported by the applicable deadline. Context: The exception represented one of two applicable subawards associated with the program during the audit period. The late-reported subaward totaled $66,000. No questioned costs resulted from the exception. Cause: Caminar Latino, Inc. had not established a formal control to identify applicable subawards, determine the required reporting deadline, and ensure that the required subaward information was submitted timely. Effect: Caminar Latino, Inc. did not comply with the FFATA reporting requirement, which could result in a lack of transparency and accountability for the use of Federal funds. Recommendation: We recommend that Caminar Latino implement internal controls to ensure compliance with the FSRS reporting deadlines. Specifically, we recommend establishing a process that includes reminders or system alerts to ensure that subaward information is submitted on time.. Views of Responsible Officials Corrective Actions: Caminar Latino, Inc. agrees with this finding. Please refer to the Corrective Action Plan.