Finding Text
FINDING REFERENCE NUMBER 2025-010 FEDERAL PROGRAMS (ALN – 10.553) SCHOOL BREAKFAST PROGRAM (SBP) – CHILD NUTRITION CLUSTER (ALN – 10.555) NATIONAL SCHOOL LUNCH PROGRAM (NSLP) – CHILD NUTRITION CLUSTER (ALN – 10.559) SUMMER FOOD SERVICE PROGRAM FOR CHILDREN (SFSP) – CHILD NUTRITION CLUSTER U.S. DEPARTMENT OF AGRICULTURE AWARD NUMBERS 251PR300306B (Fiscal Years: 07/01/2024 – 06/30/2026); 251PR300306N (Fiscal Year: 07/01/2024 – 06/30/2025); 251PR300306S (Fiscal Year: 07/01/2024 – 06/30/2025) COMPLIANCE REQUIREMENT REPORTING – 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 The audit revealed that the Department did not adhere to the FFATA reporting procedures during the fiscal year. We found that 100% (9 out of 9) required reports were submitted after the required due date. QUESTIONED COSTS None PERSPECTIVE INFORMATION During the fiscal year, the PRDE awarded approximately sixty-one (61) awards [thirty-seven (37) under the National School Lunch Program (NSLP) and the School Breakfast Program (SBP), and twenty-four (24) under the Summer Food Service Program for Children (SFSP)] that exceeded the $30,000 reporting threshold subject to the FFATA requirements. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 0 9 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,954,867 $0 $2,954,867 $0 $0 STATEMENT OF CAUSE The PRDE staff have been implementing corrective actions regarding the compliance with this requirement related to the Federal Funding Accountability and Transparency Act (FFATA); however, some reports related primarily to contract amendments were not filled on a timely manner. POSSIBLE ASSERTED EFFECT The PRDE is in non-compliance with the requirements to report through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FFATA) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION AS A REPEAT FINDING This is a repeat finding (Finding Reference Number 2024-011). RECOMMENDATION We recommend that the PRDE continue 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.