Finding Text
Type of Finding: (F) Significant Deficiency in Internal Control Over Compliance of Federal Awards (G) Instance of Non-compliance related to Federal Awards NEW SPACE NEXUS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2022 41 Federal Award Information Funding Agency: U.S. Department of Defense, passed through the Air Force Research Laboratory Title: New Space New Mexico Small Satellite Manufacturing and Innovation Hub (iHub) AL #: 12.599 Award #: FA9453-21-3-1001 Compliance Requirement: Reporting Award Period: 06/01/2021-05/31/2026 Questioned Costs: None Noted Condition For the year ended December 31, 2022, we reviewed required reporting for the award. Of 4 required quarterly Federal Financial Reports (FFR, SF-425), 3 were submitted after the required due date (reporting periods: Q1–Q3]; due dates: 30 days after end of quarter; submitted: 1/5/2023). Of 2 quarterly Technical Progress Reports tested, 1 was submitted late (periods: 1; due: 30 days after end of quarter; submitted: 1/5/2023). Required annual reports (Annual Performance Progress Report and SAM.gov annual financial assistance representations/certifications, were not submitted to AFRL as of 12/31/2022. Criteria The terms and conditions of Award No. FA9453-21-3-1001 require submission of specified financial and performance/technical reports by the 30th calendar day after the end of each reporting period, and require specified annual reports. Additionally, Uniform Guidance includes requirements addressing financial and performance reporting as applicable to the award. Effect Late or missing reporting reduces AFRL/DoD’s ability to timely monitor award performance and compliance and increases the risk of delayed identification of performance or financial issues requiring corrective action. Cause Reporting calendar control not established; responsibilities not assigned; supervisory review not performed; staff turnover; unclear interpretation of award terms. NEW SPACE NEXUS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2022 42 Recommendation All status reports should be prepared on time and reviewed before submission to AFRL. Management should implement a documented reporting control that (1) maps each required report to due dates, (2) assigns preparation/review/approval responsibilities (titles), (3) retains evidence of review and submission, and (4) performs periodic supervisory monitoring of on-time submission (e.g., quarterly checklist). Views of Responsible Officials and Planned Corrective Action Management concurs and will implement documented reporting procedures that clearly define required financial, technical, and annual reports, assign preparation and review responsibilities, and establish internal review and approval prior to submission. Reviews of reports and submission will be done by the financial analyst along with the executive director in a timely manner, and management will perform periodic monitoring to ensure reports are submitted timely and in accordance with award requirements. SF- 425s are to be susubmitted to AFRL when the Part 2 invoice of the last month of the quarter are submitted by the financial advisor. Owned by: Financial Analyst By: March 31, 2023.