Finding Text
2022 ? 001 Reporting, Federal Funding Accountability and Transparency Act Federal agency: U.S. Department of State, Professional and Cultural Exchange Programs Federal program title: International Visitor Leadership Program CFDA Number: 19.402 Award Period: January 1, 2020 ? June 30, 2022; February 2, 2022 ? June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: As noted in 2 CFR Part 170, the recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) and report subaward data through FSRS no later than the end of the month following the month in which the obligation was made. Condition: During our testing, we noted Global Ties U.S. did not register all the original and subsequent first tier subawards of $30,000 or more in FSRS within the requirement timeline. Questioned costs: None Context: FFATA reporting was not submitted in FSRS. Cause: During the fiscal year under audit, Global Ties U.S. received several tranches of the direct award and distributed them to all the subrecipients. Due to the volume of the disbursement activity required to fulfil the obligations under this awards, the organization did not have sufficient staffing to comply with FFATA reporting requirements within the specified deadlines throughout the year. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-005. Effect: Global Ties U.S could fail to ensure that subrecipients are in compliance with the federal award requirements. Recommendation: We recommend Global Ties U.S. design controls to ensure all first tier awards in excess of $30,000 are accurately and timely registered with the Federal Funding Accountability and Transparency Act Subaward Reporting System. In addition, Global Ties U.S. should ensure that any subawards are reported within the required time frame. The list of data elements required to be reported for each subaward in excess of $30,000 include the following: ? Subaward date ? Subaward UEI number ? Subaward amount ? Subaward obligation/action date ? Subaward number ? Subaward report submission date. Views of responsible officials: There is no disagreement with the audit finding.