Finding Text
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.