Finding Text
2025-001 – Internal Controls and Compliance Over Reporting Identification of the Federal Program Program: Wildlife Crisis Strategy Landscapes Federal Financial Assistance Listing Number: 10.724 Federal Grantor: U.S. Department of Agriculture (USDA) – Forest Service Award No. and Year: 24-SA-11041200-018 Compliance Requirement: Reporting Type of Finding: Material weakness, noncompliance Criteria: Management of the Federation is responsible for submitting accurate, current and complete quarterly Federal Financial Reports (“FFR”) within 30 days after the end of the quarter. Condition: The Federation filled out the FFR with the reporting period end date of September 30, 2025 incorrectly. The Total Federal funds authorized was overstated due to an error in the Federation’s calculation. Cause: The total federal funds authorized on the September 30, 2025 reporting period end date FFR was listed as $7,590,236. Per the grant agreement, the federal funds authorized were $2,549,350. The Federation keeps excel budget spreadsheets for internal control purposes. The excel budget spreadsheet includes the federal funds authorized and this spreadsheet is used to fill out the quarterly FFRs. There was a formula error in the Federation's budget calculation when filling out the September 30, 2025 reporting period end date FFR. The budget line item amounts for thinning were counted twice by mistake. Additionally, line items that were optional should have been excluded from the budget on the FFR. Effect: The Federation was not in compliance with Federal requirements for the Reporting attribute as inaccurate information was reported to the Federal awarding agency. Recommendation: We recommend the Federation's management to review reports more closely for accuracy and completeness of data and information included in the reports. We note the Federation identified the calculation error and correctly reported the authorized federal funds amount in the subsequent reporting period ending December 31, 2025.