Finding Text
Finding #: 2022-001 Funding Year(s): 10/1/2011 ? 9/29/2027 Federal Agency: USAID Type of Finding: Reporting - Compliance and Internal Control (Significant Deficiency) Criteria: Under the requirements of the Federal Funding Accountability and Transparency Act (?FFATA?) (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 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). The award information must be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition/Context: During fiscal year 2022, Pact Inc. awarded a total of ten (10) sub-awards that exceeded $30,000 to subrecipients. Refer to the table below for results of our testing. "SEE SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR CHART/TABLE" Cause/Effect: While Pact Inc. has established policies and procedures to ensure that the required reports are accurately completed and submitted on a timely basis, we noted the following oversight for the above subawards tested: ? For four of the samples, Pact, Inc. was unable to provide proof of submission as they did not retain documentation of the report submissions. ? For one of the samples, we noted that due to the switch in FSRS system from DUN to UEI identification number in the month of April 2022, Pact, Inc. was unable to report this subaward as they never received a UEI for the pass-through entity. ? For one of the samples, due to oversight Pact missed the filing window and failed to submit a subawards in the FSRS system within the stipulated reporting period. Additionally, when Pact, Inc. became aware of this oversight and attempted to file the FFATA report the FSRS system rejected the submission. Questioned Costs: None identified. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that Pact Inc. strengthen their internal controls over the reporting process to ensure all FFATA reports are submitted within the required timeframe, and they keep a record of report submitted.