Finding Text
FINDING REFERENCE NUMBER 2024-038 FEDERAL PROGRAMS (ALN – 93.489; 93.575 AND 93.596) CHILD CARE AND DEVELOPMENT FUND CLUSTER (ALN – 93.575) COVID-19 – CHILD CARE AND DEVELOPMENT FUND CLUSTER U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES AWARD NUMBERS G1901PRCCDD; G2001PRCCC3, G2001PRCCDD, G2001PRCCDX, G2101PRCCC5, G2101PRCCDD, G2101PRCDC6, G2101PRCSC6, G2201PRCCDD, G2201PRCCDD-SUB, G2201PRCCDT, G2301PRCCDD, G2301PRCCDD-SUB, G2301PRCCDT, G2301PRCCDX, G2401PRCCDD and G2401PRCCDT (Federal Award Years: 2019 through 2024) ADMINISTRATION ADMINISTRATION FOR THE CARE AND COMPREHENSIVE DEVELOPMENT OF CHILDREN (ACUDEN, BY ITS SPANISH ACRONYM) COMPLIANCE REQUIREMENT REPORTING – SPECIAL REPORTS FOR FFATA TYPE OF FINDING INTERNAL CONTROL AND COMPLIANCE – MATERIAL WEAKNESS AND MATERIAL NONCOMPLIANCE CRITERIA In accordance with 2 CFR Part 170, establishes that recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION As part of our audit procedures over the reporting requirements, we interviewed staff responsible for the Child Care Cluster Program, and we were told that they did not submit the required Federal Funding Accountability and Transparency Act (FFATA) reports during the 2023-2024 fiscal year. Transactions Tested Subaward Not Reported Dollar Amount of Tested Transactions Subaward Not Reported 127 127 $100,523,797.00 $100,523,797.00 QUESTIONED COSTS None. PERSPECTIVE INFORMATION During an interview with the ACUDEN’s Management about the internal control and compliance with this FFATA requirement, they indicated to us that ACUDEN did not have the person assigned to assure the compliance with this requirement. STATEMENT OF CAUSE The ACUDEN’s Management does not have human resources assigned to perform duties related to the compliance with the requirements FFATA applicable to the Child Care Cluster Program’s funds they manage. POSSIBLE ASSERTED EFFECT The ACUDEN‘s non-compliance with the requirements to report through the FFATA Subaward Reporting System (FSRS) platform did not allow the transparency that this report requires for these funds. IDENTIFICATION OF REPEAT FINDING This is a repeat of a finding reported in the prior audit as Finding Numbers is 2023-050. RECOMMENDATIONS We recommend management to assign the necessary human resources and to provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.