Finding Text
Federal Agency: U.S. Department of Commerce
Federal Program: Economic Development Cluster
Assistance Listing 11.307 COVID-19–Economic Adjustment Assistance
EDA Award No. 08-79-05412
Criteria or specific requirement: Subrecipient Monitoring (2 CFR 200.331 - 200.333) and Reporting
(2 CFR Part 170). Under the requirements of the Federal Funding Accountability and
Transparency Act (FFATA) (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No.
110-252, hereafter referred to as the “Transparency Act” that are codified in 2 CFR Part
170, recipients (i.e., direct recipients) of grants or cooperative agreements are required
to report first-tier subawards of $30,000 or more to the Federal Funding Accountability
and Transparency Act Subaward Reporting System (FSRS).
Condition: The Organization subawarded a portion of this award with out written approval
from the Economic Development Administration. The Organization also failed to file the
FFATA reporting submission for the fiscal year ended June 30, 2023.
Questioned Costs: $215,000
Context: The Organization did not obtain approval or report the subaward information for the
one subrecipient that received $215,000 in fiscal year 2023.
Effect: The noncompliance could have a direct and material effect on the financial
statements.
Cause: The Organization did not have adequate controls or procedures in place to identify the
applicable subrecipient monitoring and reporting requirements and ensure the information was
filed accurately and timely.
Identification as a Repeat Finding, if Applicable: Not applicable.
Recommendation: We recommend implementing procedures and controls to ensure subrecipient
monitoring and reporting requirements are monitored and required reports are filed by their
respective due dates as required by the grant agreement and Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with
the finding and recommendation. See separate report for planned corrective actions.