Finding 479251 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-07-24

AI Summary

  • Core Issue: The Organization failed to report first-tier subawards of $30,000 or more as required by the Transparency Act.
  • Impacted Requirements: Non-compliance with FFATA reporting leads to lack of public access to subaward data.
  • Recommended Follow-Up: Implement new policies and procedures to ensure compliance with FFATA reporting requirements.

Finding Text

Federal Agency: U.S. Department of Health and Human Services (“DHHS”) Program Title: Substance Abuse and Mental Health Services Projects of Regional and National Significance Assistance Listing Number: 93.243 Federal Award Source: Direct Funding Pass-Through Entity: N/A Pass-Through Identifying Number: N/A 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). Condition – During our audit of the reporting requirements for the Organization’s subawards, we noted the Organization did not complete the necessary reporting to be in compliance with FFATA. Cause – The finding appears to be the result of an oversight and lack of understanding of FFATA reporting requirements. Effect and Context – The Organization is not in compliance with the reporting requirements of FFATA for its subrecipient and therefore, data regarding the Organization’s subaward is not publicly available as required. Questioned Costs – None noted. Recommendation –We recommend the Organization implement policies and procedures to ensure its compliance with the reporting requirements of FFATA. View of Responsible Officials - We agree with the finding and are in the process of updating our policies and procedures regarding FFATA reporting requirements. See our Corrective Action Plan for the year ended December 31, 2023 for additional detail.

Corrective Action Plan

2023-001: Reporting (Significant Deficiency) and Compliance During our audit of the reporting requirements for the Organization’s subawards, we noted the Organization did not complete the necessary reporting to be in compliance with FFATA. 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 finding appears to be the result of an oversight and lack of understanding of FFATA reporting requirements. Recommendation: We recommend the Organization implement policies and procedures to ensure its compliance with the reporting requirements of FFATA. View of Responsible Officials: OPCS agrees with the finding and are in the process of up-dating our procedures to mitigate issues in the future. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail. Corrective Action Plan: The finding relates to a sub-recipient in excess of $30,000 which has attached FFATA reporting requirements. Our plan to mitigate the irsk of a repeat finding Old Pueblo will implement a control where all sub-recipients more than $30,000 will undergo an additional layer of review specifically for FFATA requirements. If the associated direct award agreemenet is not clear on the requirement’s applicability management will reach out to the awarding federal agency. Sub-recipients in excess of $30,000 will have documentation that the above review was taken place by Ellyn, Langer, CFO. The new control will be in place by August 2024.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1055693 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
64.024 Va Homeless Providers Grant and Per Diem Program $114,131
14.218 Community Development Block Grants/entitlement Grants $101,510
21.027 Coronavirus State and Local Fiscal Recovery Funds $67,930
16.812 Second Chance Act Reentry Initiative $38,005
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $27,772
97.024 Emergency Food and Shelter National Board Program $7,487
14.267 Continuum of Care Program $7,278