Finding Text
Assistance Listing Number, Federal Agency, and Program Name – 11.307, U.S. Department of Commerce,
Economic Development Cluster
Finding Type – Material weakness and material noncompliance with laws and regulations
Repeat Finding - No
Criteria – According to Public Law 109 Number 109-282, the prime recipient is required to file a
Federal Funding Accountability and Transparency Act (FFATA) sub-award report by the end of the
month following the month in which the prime recipient awards any sub-grant greater than or equal
to $30,000.
Condition - The Organization did not have controls in place to ensure required FFATA reports were
submitted in the period of time required.
Questioned Costs - None
Context – The Organization is a prime recipient and had seven subrecipients in the current year.
However, the Organization did not submit the required FFATA reports in the period of time required.
The following table summarizes the transactions examined and the non-compliance identified: See the Schedule of Findings and Questioned Costs for chart/table
Cause and Effect - There was a lack of appropriate controls to ensure the required FFATA reports
were submitted and this caused a delay in the submission of the reports.
Recommendation - We recommend the Organization implement controls to ensure all of the required
reports are submitted.
Views of Responsible Officials and Corrective Action Plan - The subrecipient organizations and the
amounts of each sub-award were included in the grant application. The subrecipents were listed in
the Organization’s Prime award Specific Terms and Conditions. The organization has implemented an
FFATA policy handbook to ensure awareness of the filing timing requirements. This handbook has been included in the Organization's Grant Award checklist for all federal grant awards.