Finding 478688 (2023-001)

Federal Agency: U.S. Department of the Interior (ALN 15.931) Award Year: 2023 Type of Finding: Compliance and Internal Control (Significant Deficiency)2023-001 Compliance Requirement: Federal Funding Accountability and Transparency Act (FFATA) Reporting Criteria: In accordance with 2 CFR 170 direct recipients of federal awards must report each subaward that equals or exceeds $30,000 in federal fundsawarded to a non-federal entity or federal agency. The reporting is required to be completed through the FFATA Subaward Reporting System (FSRS) no later than the end of the month following the month in which the award or modification thereof is made. Condition/Context: During the year ending December 31, 2023 Y-USA awarded a total of 15 subawards that exceeded $30,000 to subrecipients. Refer to the table below for the results of our testing: Cause: The processes and control environment were not designed effectively to capture a modification to a subaward that causes the total subaward to equal or exceed $30,000. Effect or potential effect: Failure of the internal controls to capture subawards or modifications to subawards on a monthly basis to permit timely reporting to the FSRS will result in noncompliance with the FFATA reporting guidelines Questioned Costs: None identified. Repeat Finding: No Recommendations: We recommend that management strengthen their internal controls over the reporting process to ensure all FFATA reports are submitted within the required timeframe. Views of responsible officials: Management notes the details of this finding. Management will implement procedures to mitigate the outlined issues in our Corrective Action Plan.