Finding 374479 (2023-001)

Improve Controls and Timing of Reporting Federal Program Information Federal Agency: U.S. Department of Labor Cluster/Program: Community Project Funding/Congressionally Directed Spending Award Name: A Pathway to Employment for Every Working Vermonter (PEEWV) AL Number: 17.289 Award Year: 2023 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, 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). Condition and Context BDCC did not comply with the requirements of the Transparency Act related to reporting first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS), as follows: SEE TABLE Cause Weakness in the design and operation of controls over compliance related to Transparency Act requirements. Effect or Potential Effect Due to the weaknesses in internal controls noted above, BDCC did not timely comply with the requirements of the Transparency Act related to reporting first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Questioned Costs No questioned costs are reported as this requirement is procedural in nature. Recommendation BDCC should develop procedures to comply with the Transparency Act related to reporting first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.