Finding 1181549 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-19
Audit: 392752
Organization: SOUTHWESTERN COLLEGE FOUNDATION (CA)
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: The Foundation failed to comply with FFATA reporting requirements, resulting in untimely and incomplete submissions of subaward obligations.
  • Impacted Requirements: Non-federal entities must report subawards of $30,000 or more in the FSRS by the end of the month following the obligation.
  • Recommended Follow-Up: Improve internal controls to ensure timely and complete FFATA reporting, including monitoring deadlines and resolving reporting issues.

Finding Text

Reporting Federal Agency: U.S. Department of Defense (DoD) Pass-Through Entity: Direct Funded by the U.S. Department of Defense (DoD) Program Name: Award of Cooperative Agreement for the establishment of an APEX Accelerator Assistance Listing Number: 12.002 Award Identification Number: W56KGU2420049 Award Year: 2024-2025 Federal Agency: Small Business Administration Pass-Through Entity: Direct Funded by the Small Business Administration Program Name: San Diego & Imperial Women's Business Center Assistance Listing Number: 59.043 Award Identification Number: SBAOEDWB220079 Award Year: 2024-2025 Criteria Under the Federal Funding Accountability and Transparency Act, as implemented by 2 CFR Part 170, non‑federal entities are required to report each first‑tier subaward with a total obligation or face value of $30,000 or more in the Federal Subaward Reporting System (FSRS) through SAM.gov. FFATA reports are required to be submitted no later than the last day of the month following the month in which the subaward obligation was made. Condition Material Weakness in Internal Control over Compliance and Noncompliance – The Foundation did not fully comply with FFATA reporting requirements. During testing over FFATA reporting requirements, the following deficiencies were noted:  For the Award of Cooperative Agreement for the establishment of an APEX Accelerator program, the single subaward obligation was submitted untimely.  For the San Diego & Imperial Women’s Business Center program, of the two subaward obligations tested, one was not submitted and one was submitted untimely. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling All subaward obligations were selected for testing. The quantity and subaward obligation errors were noted as follows: Quantity Dollar Value Total Tested 3 $1,650,000 Not Reported 1 450,000 Not Timely 2 1,200,000 Obligation Incorrect - - Missing Key Elements - - Effect Subaward obligations were not reported in the SAM.gov website and therefore excluded from public information disclosure. Cause The Foundation did not have adequate internal controls to ensure subaward information was submitted in accordance with the FFATA reporting requirements. The FAIN number for San Diego & Imperial Women's Business Center provided by the SBA is reported as “invalid” upon entry into Sam.gov, thus causing the Foundation to be unable to report the subawards under this FAIN number. Repeat Finding (Yes or No) No. Recommendation The Foundation should enhance internal controls to ensure FFATA reporting requirements are met timely and completely, including procedures for monitoring reporting deadlines and addressing unresolved reporting issues.

Corrective Action Plan

Views of Responsible Officials and Corrective Action Plan We concur. Foundation management has implemented new procedures to ensure all required reporting is performed timely and accurately. We will continue outreach to the Small Business Administration to verify and correct the invalid FAIN number.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1181548 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
12.002 PROCUREMENT TECHNICAL ASSISTANCE FOR BUSINESS FIRMS $779,650
59.043 WOMEN'S BUSINESS OWNERSHIP ASSISTANCE $750,000
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $441,277
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $282,269