Finding 405701 (2023-002)

Finding 2023-002 – Federal Funding Accountability and Transparency Act Reporting (Significant Deficiency) Federal Agency: U. S. Department of Health and Human Services Pass-through Agency: N/A Direct Award Program Name: Head Start Cluster Assistance Listing Number: 93.600 Award Numbers: 05HP000472-02-00; 05HP000472-03-00; 05HE000430-01-C5 (COVID-19); 05HE000430-01-C6 (COVID-19) Category of Finding: Reporting Criteria – Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA), modified in 2 CFR Part 170, direct recipients of grants are required to report first-tier subawards of $30,000 or more to the FFATA Subaward Reporting System (FSRS) no later than the end of the month following the month in which the subaward obligation was made. Condition and Context – During our testing of the reporting compliance requirement related to the Head Start Cluster, it was determined that the FFATA reporting to FSRS was not completed for the subrecipient tested. (See Schedule of Findings and Questioned Costs for table). Cause – Great Lakes Community Action Partnership’s internal controls failed to detect that the FFATA reporting had not been performed. Effect – Failure to submit the required FFATA reports by the end of the month following an award given to a subrecipient results in noncompliance with 2 CFR Part 170 and could impact future funding. Questioned Costs – None Repeat Finding – No Recommendation – Great Lakes Community Action Partnership should evaluate each award for applicability of FFATA reporting and develop processes and internal controls to ensure proper submission of reports in accordance with the requirements of the Federal Funding Accountability and Transparency Act. View of Responsible Officials – Management agrees with this finding. Please see Management’s Corrective Action Plan.