Audit 413839

Federal Agency: Department of Agriculture Federal Program Name: Urban and Community Forest Improvement Program-Inflation Reduction Act Assistance Listing Number: 10.727 Award Period: February 15, 2024 – December 31, 2028 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Federal Funding Accountability and Transparency Act (FFATA) and 2 CFR Part 170 require recipients of federal awards to report information regarding first-tier subawards meeting applicable reporting thresholds within the prescribed reporting period through SAM.gov. Condition: During our testing of FFATA reporting requirements, we noted that Sustainable Forestry Initiative did not submit required FFATA reports for all first-tier subawards of $30,000 or more in SAM.gov. Questioned costs: None Context: FFATA reporting was not submitted in SAM.gov. Cause: Management did not maintain adequate internal controls to ensure that all reportable first-tier subawards were identified, monitored, and reported timely in SAM.gov. Specifically, responsibilities for FFATA reporting were not formally assigned, and there was no secondary review process to verify compliance with reporting deadlines. Effect: Failure to submit timely and accurate FFATA reports resulted in noncompliance with federal reporting requirements and reduced transparency regarding the expenditure of federal funds. Required information concerning subaward recipients was not available through the federal reporting system within the timeframe established by FFATA. Repeat Finding: No Recommendation: We recommend that management strengthen internal controls over FFATA compliance by: 1. Establishing written policies and procedures governing FFATA reporting requirements. 2. Assigning responsibility for identifying reportable subawards and submitting reports. 3. Maintaining a tracking log of all subawards subject to FFATA reporting. 4. Implementing a supervisory review process to verify submission of all required reports within prescribed deadlines. 5. Performing periodic reconciliations between subaward records and information reported through SAM.gov. Views of responsible officials: Management concurs with the finding. Management will implement formal procedures for identifying and tracking FFATA-reportable subawards, designate responsible personnel for filing required reports, and establish a supervisory review process to ensure reports are submitted completely and timely. Management has taken corrective action prior to the finalization of the audit.