Finding 396243 (2021-006)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-05-09
Audit: 305892
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: CFSC failed to submit three out of four required reports on time to the National Fish and Wildlife Foundation.
  • Impacted Requirements: Non-compliance with 2 CFR 200.328 and 2 CFR 200.329(c)(1) regarding timely reporting.
  • Recommended Follow-Up: CFSC should enhance its policies and procedures to ensure timely submission of all required reports.

Finding Text

Finding 2021-006 Program: Office for Coastal Management Federal Financial Assistance Listing: 11.473 Federal Grantor: U.S. Department of Commerce Passed-through: National Fish and Wildlife Foundation Award No. and Year: 0318.19.070225 (2020) Compliance Requirements: Reporting Type of Finding: Material Non-Compliance/Material Weakness Criteria: 2 CFR 200.328 - Unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. 2 CFR 200.329(c)(1) -Requirements state that the non-Federal entity must submit performance reports at the interval required by the Federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity. Condition: For three of the four reports selected for testing, CFSC did not submit the reports to the National Fish and Wildlife Foundation by the required date. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: Sampling was not used. We selected all four reports filed during year. The condition noted above was identified during our procedures over the CFSC’s reporting provisions. Repeat Finding from Prior Year: No Effect: CFSC did not submit required reports in a timely manner, increasing the risk of noncompliance. Cause: CFSC’s procedures did not consistently ensure that the required reports were submitted on a timely basis. Recommendation: We recommend that CFSC modify and strengthen its current policies and procedures to ensure that all required reports are submitted on a timely basis to the appropriate Federal Agency or Pass-Through Entity. Views of Responsible Officials and Planned Corrective Actions: See Separate Corrective Action Plan.

Corrective Action Plan

Finding 2021-006 Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jessica Martinez, Program Director Joel Rusco, Chief Financial and Administrative Officer Jacy Hyde, Executive Director Contact Person: Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Program Director Corrective Action Plan: • CFSC retained Clark Nuber to review current reporting policy and procedures. Clark Nuber’s recommendations will be reviewed and approved by CFSC management and thereafter implemented by all CFSC staff. • CFSC will implement the updated policy, procedures, and tracking mechanisms to ensure all grant progress reports are submitted to managers prior to the due date for review, approval, and timely submission to the funding agency. • CFSC is conducting a full review of policies and procedures to ensure they are compliant with GAAP and Uniform guidance requirements. Anticipated Completion Date: CFSC will establish and implement the new policies and procedures by the end of Q2 2024.

Categories

Subrecipient Monitoring Reporting Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 396242 2021-005
    Significant Deficiency
  • 396244 2021-007
    Material Weakness
  • 396245 2021-008
    Material Weakness
  • 396246 2021-009
    Material Weakness Repeat
  • 396247 2021-010
    Material Weakness Repeat
  • 972684 2021-005
    Significant Deficiency
  • 972685 2021-006
    Material Weakness
  • 972686 2021-007
    Material Weakness
  • 972687 2021-008
    Material Weakness
  • 972688 2021-009
    Material Weakness Repeat
  • 972689 2021-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
11.473 Office for Coastal Management $936,822
10.664 Cooperative Forestry Assistance $30,709
15.228 Blm Fuels Management and Community Fire Assistance Program Activities $22,109