FAC Explorer

Finding 1225668 (2024-012)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-08-04
Audit: 408530
Organization: State of Kosrae (FM)
Auditor: ERNST AND YOUNG LLP

AI Summary

  • Core Issue: FSMNG failed to submit required SF-425 reports on time, leading to noncompliance with reporting requirements.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) and timely submission of quarterly Federal Financial Reports.
  • Recommended Follow-Up: Establish controls to ensure timely monitoring and submission of reports, and continue follow-up with FSM State Governments for timely submissions.

Finding Text

Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D23AF00017, D23AF00019 Area: Reporting Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.303(a), the recipient and subrecipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with the Federal statutes, regulations, and the terms and conditions of the Federal award. Based on the grant award agreements, FSMNG is required to submit quarterly Federal Financial Reports (SF-425) that are accurately presented, comparable and reconcilable. Condition: For two (or 25%) of eight SF-425 reports tested, FSMNG did not provide the copy of SF-425 and the attached accounting records extracted from Fundware reports. Cause: FSMNG did not prepare and failed to submit the required quarterly SF-425 reports to OIA for the identified periods. Effect or potential effect: FSMNG is in noncompliance with applicable reporting requirements. No questioned cost is identified as the nature of noncompliance is nonmonetary. Identification as a Repeated Finding: 2023-011 Recommendation: FSMNG should establish controls to ensure that responsible personnel timely monitor the preparation and submission of the required reports to OIA. Views of Responsible Officials: Management agrees with the finding. For the quarter ended September 30, 2023, the quarterly report could not be submitted by the due date due to delays in the submission of reports from a few of the FSM State Governments. As the SF-425 for these awards is compiled incorporating the reports of the participating states, the report for that quarter was incomplete and could not be submitted until the outstanding state reports were received. The final report, following the liquidation period, was subsequently completed and submitted to DOI, and was accepted. Management notes that no questioned costs arise, as the nature of the noncompliance is nonmonetary. Moving forward, DOFA will continue to follow up with the FSM State Governments on the timely submission of their quarterly reports so that the consolidated SF-425 reports can be prepared, reconciled to the accounting records, and submitted to OIA by the applicable due dates. Summary Schedule — Remarks (2024-012): Repeat 2023-011. Finding agreed. For the quarter ended 9/30/2023, delays in a few states' reports left the consolidated SF-425 incomplete and unable to be submitted by the due date; the final report following the liquidation period was submitted to DOI and accepted. No questioned costs — nonmonetary. Follow-up with the states on timely quarterly submissions to continue.

Corrective Action Plan

Finding Number 2024-012 (Repeat 2023-011) Corrective Action Plan Reporting — AL 15.875 (U.S. Department of the Interior) • Establish a reporting calendar identifying each SF-425 due date, and issue a formal request and follow-up protocol to the FSM State Governments requiring submission of their quarterly reports sufficiently in advance of the consolidated due date. • Designate a responsible officer to compile the consolidated SF-425, reconcile it to the accounting records, and obtain documented supervisory review before submission to OIA by the applicable due date. • Where a state report remains outstanding at the due date, submit the SF-425 on the basis of the best available data by the due date and file a revised report upon receipt of the outstanding submission, documenting the communication with OIA. • Escalate persistent non-submission by a state to the Office of Compact Management and address it through the subrecipient agreement and the subrecipient monitoring framework being established under Finding 2024-013. • Maintain a file of all reports submitted together with the supporting reconciliations for grant oversight and audit purposes. Anticipated Completion Date 9/30/2027 Responsible Person (Contact Details) Ms. Julyn Lawrence Email: julyn.lawrence@gov.fm Ms. Senny Phillip Assistant Secretary, Investment Email: senny.phillip@gov.fm

Categories

Reporting

Other Findings in this Audit

  • 1225621 2024-010
    Material Weakness Repeat
  • 1225622 2024-011
    Material Weakness Repeat
  • 1225623 2024-012
    Material Weakness Repeat
  • 1225624 2024-013
    Material Weakness Repeat
  • 1225625 2024-014
    Material Weakness Repeat
  • 1225626 2024-010
    Material Weakness Repeat
  • 1225627 2024-011
    Material Weakness Repeat
  • 1225628 2024-012
    Material Weakness Repeat
  • 1225629 2024-013
    Material Weakness Repeat
  • 1225630 2024-014
    Material Weakness Repeat
  • 1225631 2024-010
    Material Weakness Repeat
  • 1225632 2024-011
    Material Weakness Repeat
  • 1225633 2024-012
    Material Weakness Repeat
  • 1225634 2024-013
    Material Weakness Repeat
  • 1225635 2024-014
    Material Weakness Repeat
  • 1225636 2024-010
    Material Weakness Repeat
  • 1225637 2024-011
    Material Weakness Repeat
  • 1225638 2024-012
    Material Weakness Repeat
  • 1225639 2024-013
    Material Weakness Repeat
  • 1225640 2024-014
    Material Weakness Repeat
  • 1225641 2024-010
    Material Weakness Repeat
  • 1225642 2024-011
    Material Weakness Repeat
  • 1225643 2024-012
    Material Weakness Repeat
  • 1225644 2024-013
    Material Weakness Repeat
  • 1225645 2024-014
    Material Weakness Repeat
  • 1225646 2024-010
    Material Weakness Repeat
  • 1225647 2024-011
    Material Weakness Repeat
  • 1225648 2024-012
    Material Weakness Repeat
  • 1225649 2024-013
    Material Weakness Repeat
  • 1225650 2024-014
    Material Weakness Repeat
  • 1225651 2024-010
    Material Weakness Repeat
  • 1225652 2024-011
    Material Weakness Repeat
  • 1225653 2024-012
    Material Weakness Repeat
  • 1225654 2024-013
    Material Weakness Repeat
  • 1225655 2024-014
    Material Weakness Repeat
  • 1225656 2024-010
    Material Weakness Repeat
  • 1225657 2024-011
    Material Weakness Repeat
  • 1225658 2024-012
    Material Weakness Repeat
  • 1225659 2024-013
    Material Weakness Repeat
  • 1225660 2024-014
    Material Weakness Repeat
  • 1225661 2024-010
    Material Weakness Repeat
  • 1225662 2024-011
    Material Weakness Repeat
  • 1225663 2024-012
    Material Weakness Repeat
  • 1225664 2024-013
    Material Weakness Repeat
  • 1225665 2024-014
    Material Weakness Repeat
  • 1225666 2024-010
    Material Weakness Repeat
  • 1225667 2024-011
    Material Weakness Repeat
  • 1225669 2024-013
    Material Weakness Repeat
  • 1225670 2024-014
    Material Weakness Repeat
  • 1225671 2024-015
    Material Weakness Repeat
  • 1225672 2024-016
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $10.49M
84.027 SPECIAL EDUCATION GRANTS TO STATES $4.32M
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $2.36M
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $1.85M
11.460 SPECIAL OCEANIC AND ATMOSPHERIC PROJECTS $1.76M
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $841,860
93.116 PROJECT GRANTS AND COOPERATIVE AGREEMENTS FOR TUBERCULOSIS CONTROL PROGRAMS $785,177
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $693,063
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $547,187
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $499,605
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $440,347
93.889 NATIONAL BIOTERRORISM HOSPITAL PREPAREDNESS PROGRAM $391,794
84.325 SPECIAL EDUCATION - PERSONNEL DEVELOPMENT TO IMPROVE SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES $374,133
93.377 PREVENTION AND CONTROL OF CHRONIC DISEASE AND ASSOCIATED RISK FACTORS IN THE U.S. AFFILIATED PACIFIC ISLANDS, U.S. VIRGIN ISLANDS, AND P. R. $373,533
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $301,021
93.217 FAMILY PLANNING SERVICES $265,142
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $256,869
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $245,341
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $238,123
93.251 EARLY HEARING DETECTION AND INTERVENTION $211,363
93.110 SPECIAL PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $188,904
93.092 AFFORDABLE CARE ACT (ACA) PERSONAL RESPONSIBILITY EDUCATION PROGRAM $175,874
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $168,368
10.675 URBAN AND COMMUNITY FORESTRY PROGRAM $136,503
45.310 GRANTS TO STATES $135,599
93.788 OPIOID STR $105,553
10.664 COOPERATIVE FORESTRY ASSISTANCE $103,437
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $78,929
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $50,824
93.336 BEHAVIORAL RISK FACTOR SURVEILLANCE SYSTEM $45,515
17.225 UNEMPLOYMENT INSURANCE $43,064
93.127 EMERGENCY MEDICAL SERVICES FOR CHILDREN $35,838
93.235 TITLE V STATE SEXUAL RISK AVOIDANCE EDUCATION (TITLE V STATE SRAE) PROGRAM $34,846
93.917 HIV CARE FORMULA GRANTS $33,732
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $30,025
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $18,767
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION€™S HEALTH $8,854
93.104 COMPREHENSIVE COMMUNITY MENTAL HEALTH SERVICES FOR CHILDREN WITH SERIOUS EMOTIONAL DISTURBANCES (SED) $2,273