Finding Text
CRITERIA In accordance with 2 CFR Part 170, establish that 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 non-Federal entity or Federal agency must report each obligating action to http://www.fsrs.gov. For subaward information, report no later than the end of the month following the month in which the obligation was made. STATEMENT OF CONDITION As part of our audit procedures, we interviewed staff responsible for the CDBG program, and we were told that they had not been submitted the required Federal Funding Accountability and Transparency Act (FFATA) reports during the 2021-2022 fiscal year. QUESTIONED COSTS None PERSPECTIVE INFORMATION The PRDH did not provide details of those awards or contracts subject to the FFATA requirements. All government entities in Puerto Rico have to submit all formalized contracts to the "Office of the Comptroller of Puerto Rico". In a search carried out, the total number of transactions that we understand could be subawards and therefore subject to the FFATA requirements, totaled about 241 contracts. STATEMENT OF CAUSE The PRDH staff were unaware of the requirements related to the FFATA applicable to the CDGB funds they manage. POSSIBLE ASSERTED EFFECT The PRDH is in non-compliance with the requirements to report through the FFATA Subaward Reporting System (FSRS) platform. This condition does not allow for the transparency that this report requires. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference No. 2021-002). RECOMMENDATIONS We recommend management to provide training and technical assistance to the personnel they designate to monitor all the funds delegation contracts that meet the requirements to be reported on the FSRS portal, and to be able to keep track of when they had to be reported, the date in which they submitted the information to the portal, and all the elements required to be submitted on the platform.