Finding Text
Finding No. 2022-004 - Federal Funding Accountability and Transparency Act - Late Submission
Federal Program Workforce Innovation Opportunity Act Cluster:
ALN 17.258, 17.259, and 17.278
Name of Federal Agency U.S. Department of Labor (DOL)
Compliance Requirement Reporting
Type of Finding
Internal control over compliance/non-compliance
Category
Significant deficiency
Criteria
The Federal Funding Accountability and Transparency Act (Pub. L. 109-282, as amended by section 6202(a) of
Pub. L. 110-252), known as FFATA or the Transparency Act requires information disclosure of entities receiving
Federal financial assistance through Federal awards such as Federal contracts, sub-contracts, grants and sub_x0002_grants, FFATA 2(a),(2),(i),(ii).
2 CFR Chapter 1, Part 170, Reporting Sub-Award and Executive Compensation Information
Prime Awardees awarded a federal grant are required to file a FFATA sub-award report by the end of the month
following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
Condition
None of the required Federal Funding Accountability and Transparency Act (FFATA) reports were timely filed.
Puerto Rico Department of Economic Development and Commerce
(An Agency of the Commonwealth of Puerto Rico)
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
- 97 -
Part III - Findings and Questioned Costs Relating to Federal Awards – (continued)
Finding No. 2022-004 Federal Funding Accountability and Transparency Act – Late Submission (continued)
Context
From a sample of ten (10) FFATA reports submitted during the fiscal year ended June 30, 2022, none of the
reports were timely submitted.
Cause
Lack of oversight and awareness over the federal reporting requirements of this Act.
Effect
If the Federal awarding agency or passthrough entity determines that noncompliance cannot be remedied by
imposing additional conditions, the Federal awarding agency or passthrough entity may take one or more of
the following actions, as appropriate in the circumstances:
(a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal
entity or more severe enforcement action by the Federal awarding agency or passthrough entity.
Puerto Rico Department of Economic Development and Commerce
(An Agency of the Commonwealth of Puerto Rico)
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
- 98 -
Part III - Findings and Questioned Costs Relating to Federal Awards – (continued)
Finding No. 2022-004 Federal Funding Accountability and Transparency Act – Late Submission (continued)
Effect - (continued)
(b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the
cost of the activity or action not in compliance.
(c) Wholly or partially suspend or terminate the Federal award.
(d) Initiate suspension or debarment proceedings as authorized under 2 CFR part 180 and Federal
awarding agency regulations (or in the case of a passthrough entity, recommend such a proceeding
be initiated by a Federal awarding agency).
(e) Withhold further Federal awards for the project or program.
(f) Take other remedies that may be legally available.
Questioned Costs
None
Identification as a Repeated Finding
This is a repeat finding from the immediate previous audit, Finding No. 2021-006.
Recommendation
We recommend the Department to correct the technical issues encountered with the Department's
subrecipients' information and work together issue with the local areas to comply with FFATA. In addition, the
implications of noncompliance should be communicated to management and those charged with governance,
who are the individuals responsible for ascertaining those processes and controls are in place and operating
effectively in compliance with federal requirements and enforce stricter compliance policies.
Views of responsible Officials (Unaudited)
Refer to the corrective action plan on pages 110-114