Finding Text
Finding 2022-004
Reporting – Material Weakness in Internal Control Over Compliance and
Material Noncompliance
Agency Department of Health and Human Services
Program ALN: No. 93.224 / 93.527 Health Center Program Cluster
Award Year 2022
Criteria or
Specific
Requirement
In accordance with 2 CFR part 170, the Borough was required to report firsttier
subawards of $30,000 or more to the Federal Funding Accountability and
Transparency Act Subaward Reporting System (FSRS) no later than the end of
the month following the month in which the obligation was made.
Condition The required reports were not submitted during the year. A control was not
in place to evaluate the applicability of the reporting requirement and ensure
the reports were submitted timely.
Cause In prior years, subawards were determined not to be subject to this reporting
requirement. However, in 2022 the Borough received funding related to the
American Rescue Plan Act Funding for Health Centers (ARPA). The Borough
was not aware that this requirement appears to be applicable for funds
received under ARPA.
Effect or potential
effect
The Borough did not submit the reports before the last day of the month
following the month in which the subaward/subaward amendment obligation
was made, resulting in the submission related to one applicable subrecipients
and initial noncompliance with program reporting requirements.
Questioned Costs None noted.
Context
The auditor performed inquiries with the Borough personnel surrounding
controls and procedures related to compliance requirements outlines in the
OMB Compliance Supplement. This requirement was noted in the Supplement
and was determined not to have been done.
Identification as a
Repeat Finding Not applicable, not a repeat finding.
Recommendation The Borough should implement internal control procedures to evaluate
applicability of grant reporting requirements, especially when funding sources
or nature of grant awards change. Views of responsible
officials
Management agrees with the finding. The Borough has taken corrective action
for the audit finding. New controls are being put into place to ensure that all
subawards over $30,000 are properly and timely reported.