Finding 1137701 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-05-22
Audit: 356882
Organization: Irl Council (FL)

AI Summary

  • Core Issue: The Federal Financial Report (SF-425) was submitted late, violating compliance requirements.
  • Impacted Requirements: The Council failed to follow 2 CFR 200.303, which mandates timely submission of reports to the EPA.
  • Recommended Follow-Up: The Chief Operating Officer should secure written clarifications on grant reporting requirements to ensure compliance moving forward.

Finding Text

MW 2024‐001 REPORTING United States Environmental Protection Agency ALN 66.456 – National Estuary Program Federal Award ID Number: CE‐00D90119, 4T‐02D39922, CE‐02D56923 2024 Funding Criteria: Per 2 CFR 200.303, non‐Federal entities must establish and maintain effective internal controls to provide reasonable assurance of compliance with the Uniform Guidance and the terms and conditions outlined by the Environmental Protection Agency. EPA recipients must submit the Federal Financial Report (SF‐425) at least annually. EPA recipients must submit the SF‐425 no later than 90 calendar days for annual reports. Final reports are due no later than 120 calendar days after the end date of the period of performance of the award. Condition: The Federal Financial Report Standard Form 425 was submitted late to the Environmental Protection Agency on March 10, 2025. Cause: The Environmental Protection Agency had informed the Council that these reports were only due at closeout of the grant; therefore, the Council did not submit these reports. However, the Office of Inspector General (OIG) stated that this was not the correct procedure. As a result of the OIG's EPA audit, the Council filed these reports on March 10, 2025 with the EPA to be in compliance. Effect: Potential for unintended errors to occur without being immediately identified and corrected. The Council was not in compliance with the Uniform Guidance and the National Estuary Program. Questioned Costs: None. Perspective: All of the reports identified above were not reviewed. Recommendation: The Chief Operating Officer should obtain in writing any adjustments or clarifications to the grant awards to ensure the requested reports are prepared and reviewed. Management Response: EPA has never requested the SF425 (Federal Financial Reporting Form) from year’s prior and we were told verbally that we were only required to submit them at grant closeout. During a current EPA OIG audit, we were informed that the procedural process we were following was incorrect and that yearly reports were required to be submitted. To bring the IRL Council back into compliance with all federal awards, the Chief Operating Officer completed the FY 2024 forms and submitted them to EPA on March 10, 2025.

Categories

Reporting Period of Performance

Other Findings in this Audit

  • 561258 2024-001
    Material Weakness
  • 561259 2024-001
    Material Weakness
  • 561260 2024-001
    Material Weakness
  • 561261 2024-002
    Significant Deficiency Repeat
  • 561262 2024-002
    Significant Deficiency Repeat
  • 561263 2024-002
    Significant Deficiency Repeat
  • 561264 2024-003
    Significant Deficiency Repeat
  • 561265 2024-003
    Significant Deficiency Repeat
  • 561266 2024-003
    Significant Deficiency Repeat
  • 1137700 2024-001
    Material Weakness
  • 1137702 2024-001
    Material Weakness
  • 1137703 2024-002
    Significant Deficiency Repeat
  • 1137704 2024-002
    Significant Deficiency Repeat
  • 1137705 2024-002
    Significant Deficiency Repeat
  • 1137706 2024-003
    Significant Deficiency Repeat
  • 1137707 2024-003
    Significant Deficiency Repeat
  • 1137708 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
66.456 National Estuary Program $544,076