Finding 1205485 (2025-001)

Material weakness Finding 2025-001: Late Filing of Federal Audit and Financial Transparency Act Reporting (FFAFTA) Federal award agency: U.S. Department of Education Program name and ALN: Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects (Innovative Approaches to Literacy); 84.215 Federal award year: January 1, 2024 to December 31, 2028 Federal Award identification number: 84.215 Criteria: The grant agreement between Metropolitan Family Services (the Agency) and the U.S. Department of Education for the Federal Award Identification Number: 84.215 outlines various financial reporting, performance reporting and special reporting requirements, including reporting requirements under FFATA. Reports are required to be submitted in the SAM.gov portal no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. For the contract number (S215J230147) reports under the FFATA requirements were due on August 31, 2024 and were not submitted until January 28, 2026. Condition: For the Federal Award Identification Number: 84.215, contract number (S215J230147), the reporting requirement for FFATA reporting, due August 31, 2024, was not met. Required reporting was submitted on January 28, 2026, which was after the submission due date. Cause: There was an oversight by the individual at the Agency responsible for report filing. The Agency’s internal controls did not properly identify the FFATA related requirements. Effect: As a result of this oversight, the Agency did not submit these reports by the required due date. Questioned costs: None identified. Context: For this program a population of fifteen reports were subject to sampling. A sample of five reports were tested, and five incidents of late report submission (noncompliance) were identified. Recommendation: We recommend that the Agency implement processes and controls to allow for consistent, timely submission of reports required under FFATA in advance of reporting deadlines, as well as a thorough review of all new grant agreements to identify FFATA related reporting requirements. Views of responsible officials: Management agrees with the finding. See corrective action plan.