Audit 413311

Federal Funding Accountability and Transparency Act (FFATA) Reporting Finding Type Other matters compliance finding and significant deficiency in internal control over compliance. Agency U.S. Department of Agriculture Assistance Listing Numbers 10.676, Forest Legacy Program Criteria As stated in 2 CFR Part 170, direct recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the System for Award Management (SAM). The reporting in SAM is required no later than the last day of the month following the month in which the subaward obligation was made. Condition and Context During our audit procedures, we noted that Land Trust Alliance (the Alliance) had entered into three subaward obligations with a value of $57,650 each. Expenses recognized during 2025 under these three subawards were $28,861, $14,413, and $11,433, respectively. The Alliance reported each of these subaward obligations on SAM on June 30, 2026, which was after the deadline required under FFATA. Cause The Alliance’s subaward activities are not a significant component of its federally funded activities. Thus, execution of the required reporting was not fully aligned across the relevant teams, resulting in the late filing of the FFATA reporting. Effect Failure to timely report hinders the grantor’s ability to monitor and administer the program. However, the limited nature of the Alliance’s subaward activities served to mitigate the risk of a material noncompliance related to the major program. Repeat Finding No. Recommendation We recommend that the Alliance implement a procedure to allow for the consistent, timely reporting of subaward obligations of $30,000 or more to the SAM system. Views of Responsible Officials and Planned Corrective Action See attached corrective action plan. Questioned Costs None