Finding Text
Questioned Costs
Finding No. 2024 001:
Federal Funding Accountability and Transparency Act Reporting (Material Weakness) $ –
Federal Agency: U.S. Department of Commerce
Assistance Listing Number and Title: 11.307
Economic Development Cluster
Award Number:
07-79-07800
Condition
During our audit, we noted an instance in which the Hawaii Tourism Authority (the “Authority”) did not complete the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the Federal Funding Accountability and Transparency Act (“FFATA”) for a subgrant made during 2024.
Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward
Missing Key Elements
2 2 0 0 0
Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward
Amount Incorrect Subaward
Missing Key Elements
$7,200,000 $7,200,000 $0 $0 $0
Criteria
Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally-awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000.
Cause and View of Responsible Officials
The lack of FFATA reporting may be attributed to general oversight by Authority management. Authority management noted that due to the lack of adequate staffing, the completion of non-routine reporting requirements such as those included in the FFATA were delayed.
Effect
Failure to file required reports reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200.
Context
A sample of one subgrant and one amendment to the subgrant greater than or equal to $30,000 totaling $7,200,000 were selected for audit from a population of $7,200,000 in subgrants greater than or equal to $30,000 from the Economic Development Cluster Program. Our test found two instances in which a FFATA report was not completed in a timely manner. Our sample was a statistically valid sample.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that Authority management understand all requirements for federal awards and ensure that required FFATA reports are completed in a timely and accurate manner.