Finding Text
2024-006 REPORTING
Federal Agency: U.S. Department of Homeland Security/FEMA
Federal Program Title & Assistance Listing Number:
Disaster Grants - Public Assistance (Presidentially Declared Disasters) - 97.036
Emergency Management Performance Grants - 97.042
Award Period: Various
Type of Finding: Significant Deficiency in Internal Control over Compliance
Other Non-compliance
Questioned Costs: Unknown
Condition:
We noted the Department was not in compliance with requirements related to the reporting of
grants.
ALN 97.042
The Department did not complete the recipient share section of the federal financial
reports for 4 out of 4 reports tested.
ALN 97.036
We reviewed files for 5 subrecipients, from which there were 16 ongoing projects during
fiscal year 2024. Of these, 4 of the 16 projects did not have evidence of the required
reporting for Federal Funding Accountability and Transparency Act (FFATA).
Criteria
According to §200.302 Financial management of 2 CFR Part 200, the State's, and the other non-
Federal entity's financial management systems, including records documenting compliance with
Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient
to permit the preparation of reports required by general and program-specific terms and conditions.
Further, the financial management system of each non-Federal entity must provide accurate, current,
and complete disclosure of the financial results of each Federal award or program in accordance with
the reporting requirements. According to §200.303 Internal controls of 2 CFR Part 200, the non-
Federal entity must establish and maintain effective internal control over the Federal award that
provides reasonable assurance that the non-Federal entity is managing the Federal award in
compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Effect.
The auditor noted instances of noncompliance. Non-compliance may result in delayed
reimbursement of eligible federal expenditures or the potential loss of federal funding.
Cause
The Department lacks established internal controls and procedures over financial grant management
to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and
properlv maintained in the files of the Department.