Finding 1154925 (2024-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-24
Audit: 367244
Organization: Sovereign Equity Fund (ND)

AI Summary

  • Core Issue: The organization failed to submit required reports for subawards under the Federal Funding Accountability and Transparency Act (FFATA).
  • Impacted Requirements: Reporting obligations under 2 CFR 170 were not met due to inadequate controls.
  • Recommended Follow-Up: Implement controls and designate a responsible party to ensure timely FFATA reporting and compliance training.

Finding Text

Federal Program – American Rescue Plan Technical Assistance Investment Program – Assistance Listing No. 10.234 - Award No. 2023-70504-40441 – Program Year 2024 – U.S. Department of Agriculture Criteria or specific requirement – Reporting, 2 CFR 170 Condition – The organization is responsible for completing reports under the Federal Funding Accountability and Transparency Act (FFATA) for all first-tier subawards. Cause – The organization did not have appropriate controls in place to ensure the required reports to be submitted under FFATA were completed and submitted timely. Effect – The organization failed to complete and submit reports for each sub-award that is required under the Federal Funding Accountability and Transparency Act. Questioned costs – N/A Context – Out of a population of 8 subrecipients, 2 subrecipients were selected for testing. No support was able to be provided for the reports required to be submitted under FFATA for each sub-award. Our sample was not, and was not intended to be, statistically valid. Identification as a repeat finding, if applicable – N/A Recommendation – The organization should put controls and policies in place to ensure that the reports for subawards required under the Federal Funding Accountability and Transparency Act are being completed and submitted within the applicable timeframe. Views of Responsible Officials and Planned Corrective Actions – Management agrees with finding. Management plans to designate a responsible party to oversee FFATA compliance. Management will update award tracking system to recognize and implement procedures for all first-tier subawards for FFATA reporting, incorporate FFATA reporting deadlines into grants calendar, and provide FFATA compliance training and ensure timely access to the reporting website.

Corrective Action Plan

August 15, 2025 United States Department of Agriculture National Institute of Food and Agriculture Awards Management Division 805 Pennsylvania Ave Kansas City, MO 64105 Attention: Federal Audit Clearinghouse (FAC) Subject: Corrective Action Plan Submission – Finding #5 – Sovereign Equity Fund – Fiscal Year End 12/31/2024 To Whom It May Concern: FFATA Reporting - Organization failed to report first-tier subawards in the FSRS system as required under the Federal Funding Accountability and Transparency Act. Corrective Actions: • Designate a responsible party to oversee FFATA compliance. • Update award tracking system to recognize and implement procedures for all first-tier subawards ≥$30,000 for FFATA reporting. • Incorporate FFATA reporting deadlines into grants calendar (due by the end of the month following the award date). • Provide FFATA compliance training and ensure timely access to FSRS.gov. Responsible Party: Executive Director Target Completion Date: Within 14 days; calendar tracking system in use for next subaward Sincerely, Courtney Chavis Executive Director

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 1154923 2024-003
    Material Weakness Repeat
  • 1154924 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.234 American Rescue Plan Technical Assistance Investment Program $813,093