Finding 1168521 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-01-08

AI Summary

  • Core Issue: Subaward FFATA reporting was not completed on time, violating federal requirements.
  • Impacted Requirements: 2 CFR Part 170 mandates timely reporting for subawards of $30,000 or more.
  • Recommended Follow-Up: Increase awareness of reporting deadlines and improve documentation for review and approval processes.

Finding Text

Finding: 2024-004 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Programs: ALN #10.937 Partnerships for Climate-Smart Commodities Criteria or Specific Requirement (including Statutory, Regulatory, or Other Citation): As noted in 2 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 in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000.Condition: During our audit, we noted that subaward FFATA reporting was not completed within the required timeframe. The reports were ultimately filed during the audit sampling phase. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: N/A Context: Our testwork covered 100% of subaward relationships. Late reporting was noted for all subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with the FFATA reporting requirements. Additionally, we recommend that CIF enhance documentation related to review and approval of such reports prior to submission.

Corrective Action Plan

Views of Responsible Officials: CIF grew substantially in FY 24 following execution of the Federal award. This finding reflects the learning phase as CIF came into compliance with the Uniform Guidance. CIF retrained staff on FFATA reporting deadlines and documentation expectations so that if new subawards are entered into in FY 26, this requirement will be met in a timely fashion. Details relating to FFATA reporting requirements are documented in the CIF Subaward Management & Subrecipient Monitoring Policy and Procedures.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties Procurement, Suspension & Debarment Eligibility HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 1168518 2024-001
    Material Weakness Repeat
  • 1168519 2024-002
    Material Weakness Repeat
  • 1168520 2024-003
    Material Weakness Repeat
  • 1168522 2024-005
    Material Weakness Repeat
  • 1168523 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.937 PARTNERSHIPS FOR CLIMATE-SMART COMMODITIES $2.79M