Finding Text
U.S. Department of the Education Fund for the Improvement of Postsecondary Education, 84,116Z Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Year: FY 2022 Grant Award Number: P116Z220137 Criteria: The Federal Funding Accountability and Transparency Act (FFATA) explains that the grant award term is issued in accordance with 2 CFR Part 170 Reporting Subaward and Executive Compensation Information. This is designed to increase transparency and improve the public’s access to Federal government information. FFATA requires the grant recipients to report first-tier subawards made under Federal grants that are funded at $30,000 or more that meet the reporting conditions as set forth in this grant award term. Condition: The Foundation did not report the first-tier subawards funded at $30,000 or more in accordance with FFATA. Subaward Missing Transactions Subaward Report Amount Key Tested Not Reported Not Timely Incorrect Elements Quantity 15 15 N/A N/A N/A Subaward Missing Transactions Subaward Report Amount Key Tested Not Reported Not Timely Incorrect Elements Dollar Value $731,000 $731,000 N/A N/A N/A N/A – As none of the reports were submitted, these categories were not applicable and/or we were unable to test them. Cause: The Foundation did not have adequate internal controls to ensure that the FFATA reporting requirements were completed in accordance with the grant agreement. Effect: $731,000 of subawards that should have been reported in accordance with FFATA was not completed. Questioned Costs: None reported. Context/Sampling: No sampling was done as the FFATA reporting was not performed, the full population of first-tier subawards is shown above. Repeat Finding from Prior Year: No Recommendation: We recommend the Foundation enhance internal controls to ensure that the FFATA reporting requirements are met. Views of Responsible Officials: Management agrees with the finding.