Finding Text
Finding 2025-004 Reporting – Material Noncompliance and Material Weakness in Internal Control Over Compliance Agency: Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year: 2024 Criteria or Specific Requirement: In accordance with 2 CFR part 170, the Borough was required to report firsttier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Condition: The required reports were not submitted during the year. Controls were not in place to evaluate the applicability of the reporting requirement and ensure the reports were submitted timely. Cause: Borough was not aware that this subaward reporting requirement was applicable for the new Health Center Program Cluster award. Effect or potential effect: The Borough was not in compliance with subrecipient reporting requirements. Questioned Costs: None noted. Context: The auditor requested the reports for the Borough’s subawards that were required under FSRS. The Borough was unable to provide the requested report as it had not been filed. Identification as a Repeat Finding: Yes. Finding 2024-004 Material Weakness in Internal Control over Compliance and Noncompliance. Recommendation: The Borough should implement internal control procedures to evaluate applicability of grant reporting requirements, especially when funding sources or nature of grant awards change. Views of responsible officials: Management agrees with the finding and will ensure all subawards are properly and timely reported.