Finding Text
FINDING REFERENCE NUMBER 2024-011 FEDERAL PROGRAMS (ALN – 10.553) SCHOOL BREAKFAST PROGRAM (SBP) – CHILD NUTRITION CLUSTER (ALN – 10.555) NATIONAL SCHOOL LUNCH PROGRAM (NSLP) – CHILD NUTRITION CLUSTER (ALN – 10.559) SUMMER FOOD SERVICE PROGRAM FOR CHILDREN (SFSP) – CHILD NUTRITION CLUSTER U.S. DEPARTMENT OF AGRICULTURE AWARD NUMBERS 241PR300306B (07/01/2023 – 06/30/2024); 241PR300306N (07/01/2023 – 06/30/2024); 241PR300306S (07/01/2023 – 06/30/2024) COMPLIANCE REQUIREMENT REPORTING – FFATA TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA In accordance with 2 CFR Part 170, establishes that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION As part of our audit procedures, we interviewed staff responsible for the Child Nutrition Cluster [School Breakfast Program (SBP), National School Lunch Program (NSLP) and Summer Food Service Program for Children (SFSP)] programs, and we were told that they had not submitted the required Federal Funding Accountability and Transparency Act (FFATA) reports during the 2023-2024 fiscal year. QUESTIONED COSTS None PERSPECTIVE INFORMATION During the fiscal year, the PRDE awarded approximately sixty-one (61) awards [thirty-seven (37) under the National School Lunch Program (NSLP) and the School Breakfast Program (SBP), and twenty-four (24) under the Summer Food Service Program for Children (SFSP)] that exceeded the $30,000 reporting threshold subject to the FFATA requirements. STATEMENT OF CAUSE The PRDE staff were unaware of the requirements related to the Federal Funding Accountability and Transparency Act (FFATA) applicable to the Child Nutrition Cluster programs they manage for that fiscal year ended June 2024. POSSIBLE ASSERTED EFFECT The PRDE is in non-compliance with the requirements to report through the FFATA Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION AS A REPEAT FINDING This is a repeat finding (Finding Reference Number 2023-009). RECOMMENDATION We recommend management to provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform. VIEWS OF RESPONSIBLE OFFICIALS In response to the finding regarding the untimely submission of the Federal Funding Accountability and Transparency Act (FFATA) reports, the Puerto Rico Department of Education (PRDE) acknowledges the observation made by the auditors. While the audit notes that program staff were unaware of the FFATA reporting requirement, we would like to clarify that the staff was aware of the requirement; however, the program was in the process of gathering the necessary data and ensuring a full understanding of the report components and submission procedures in order to comply accurately with the federal guidelines. Nevertheless, PRDE recognizes that this does not justify the delay in the submission of the reports. To prevent future occurrences, PRDE is currently developing and scheduling a comprehensive training for all program and fiscal staff involved in the Child Nutrition Cluster. This training will cover the FFATA reporting requirements, data collection procedures, submission timelines, and documentation standards to ensure full and timely compliance with the reporting process moving forward. PRDE will continue strengthening internal controls and monitoring procedures to ensure that all applicable FFATA reports are submitted accurately and on time in the FSRS portal. IMPLEMENTATION DATE December 30, 2025 RESPONSIBLE PERSON Odalis Menard AESAN Director Lourdes García Santiago AESAN Sub-Director