Finding Text
Part III - Findings and Questioned Costs Relating to Federal Awards (Continued)
2021-003 Performance and Financial Reports Submissions
Compliance Reporting
Category Material weakness in Internal Control and Material Noncompliance
ALN 12.607
Program Community Economic Adjustment of Establishment, Expansion, Realignment, or
Closure of a Military Installation
Federal Agency US Department of Defense
Criteria
Office of Economic Adjustment, Department of Defense, Notice of Award
21. Award Performance Goals
Reporting Type Frequency Due Date
Performance Report Quarterly 2021-04-30
Federal Financial Report Semi-Annual 2021-09-30
Final Performance Report Semi-Annual 2021-09-30
Semi-annual Federal Financial Report (SF-425)
Grantees that received awards on or after October 1, 2009, are required by law to submit semi-annual Federal
Financial Reports (FFR) (also known as Standard Form-425) throughout the grant's entire period of performance.
They are due twice during the calendar year. This Report must be submitted no later than 30 days after its due date,
except the final SF-425, which is due 90 days after the end date of the grant's performance period.
Condition
The Authority did not comply with the submission due dates of the Performance Reports and Federal Financial
Reports established by the OEA in their Notice of Award granted on June 6, 2020. In addition, from five reports
examined to test compliance with due dates, the submission date could not be verified in four instances, including the
Federal Financial Report.
Cause
Lack of control activities to ascertain compliance with OEA Terms and Conditions related to reporting.
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.
(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 partly suspend or terminate the Federal award. Part III - Findings and Questioned Costs Relating to Federal Awards (Continued)
2021-003 Performance and Financial Reports Submissions (Continued)
Compliance Reporting
Category Material weakness in Internal Control and Material Noncompliance
ALN 12.607
Program Community Economic Adjustment of Establishment, Expansion, Realignment, or
Closure of a Military Installation
Federal Agency US Department of Defense
Effect (Continued)
(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
Recommendation
We recommend strengthening monitoring procedures to ensure compliance with the due dates and other provisions
of the required reports by the OEA terms and conditions.
Prior year finding
This finding is similar to a prior year finding identify as 2020-013
Views of Responsible Official (Unaudited)
Refer to Corrective Action Plan