Finding 375417 (2023-002)

2023-002: U.S. Department of Health and Human Services, Division of Child and Family Services System of Care for Youth with Serious Emotional Disorders, 93.104 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 93.104 on the Schedule of Expenditures of Federal Awards. Criteria: Part of the Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000 (or $25,000 for federal agencies that have not yet adopted amendments effective November 12, 2020). Condition: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). Cause: Community Chest, Inc. (the Organization) did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Effect: Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Questioned Costs: None reported. Context/sampling: The entire population of one subaward was selected for testing. Report Finding from Prior Year(s): No. Recommendation: We recommend the Department implement internal controls to ensure subaward information is submitted in accordance with the FFATA. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.