Finding Text
2025-001 Reporting Federal Agency: U.S. Department of Labor Federal Program: 17.289, Community Project Funding/ Congressionally Directed Spending Condition: During our testing of Economic Development and Industrial Corporation of Boston’s (EDIC) compliance with the Federal Funding Accountability and Transparency Act (FFATA), EDIC did not report subaward information within the required timeframe. Criteria: FFATA requires that non-Federal entities report information on subawards in the FFATA system no later than the end of the month following the month in which the subaward or modification was made. In addition, 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Cause: EDIC’s internal controls were not adequately designed in order for EDIC to submit the subaward information into the SAM system in a timely manner. Specifically, there is no formalized monitoring or review process to verify that subaward data is submitted within the required deadlines. Effect: Noncompliance with compliance requirements. Context: A sample of three subawards, totaling $374,125, out of twenty subawards were reviewed. Two of the three subawards totaling $60,000 were not timely. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should implement and document internal controls to ensure compliance with FFATA reporting requirements, which may include establishing formal procedures for identifying reportable subawards, implementing a tracking mechanism for required reporting and performing a periodic supervisory review to ensure compliance with reporting deadlines. Management Response: Management indicated that the untimely FFATA reporting was due to staffing changes, specifically the onboarding of newly hired personnel who were not yet fully familiar with FFATA reporting requirements. Management stated that additional training and oversight will be implemented to ensure timely reporting going forward.