Finding Text
Significant deficiency in internal controls over compliance related to reporting. Federal Agency: Department of Labor Program Titles: Workforce Innovation and Opportunity Act Dislocated Worker Program Assistance Listing Number: 17.278 Award Numbers: 24A60CP000141-01-01 Award Periods: April 1, 2024 through September 30, 2025 Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act) that are codified in 2 Code of Federal Regulations (CFR) Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register the covered subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report the required subaward data no later than the last day of the month following the month the subaward was made. Condition/Context for Evaluation During the year ended December 31, 2024, the Organization lacked a process to report required subaward data in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS for those subrecipients receiving over $30,000. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 1 1 1 N/A 1 Dollar Amount of Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements N/A $682,395 $682,395 N/A N/A Effect or Potential Effect The Organization did not comply with the subaward reporting requirements as specified in 2 CFR 170. Questioned Costs None noted. Cause Internal controls were not designed adequately to ensure required reporting in FSRS was made. Repeat Finding No Recommendation We recommend that the Organization implement the necessary internal controls to ensure required reporting is made in the FSRS. In addition, we recommend the Organization make efforts to complete the required reporting for the subaward noted above. Views of Responsible Officials Management agrees that the required FSRS report was not made.