Finding 50009 (2022-001)

Reference Number: 2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Numbers: 09CH010862-04-02 and 09HE000903-01-00 Category of Finding: Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Instance of Noncompliance Criteria Title 2 ? Grants and Agreements. Subtitle A ? Office of Management and Budget Guidance for Grants and Agreements. Chapter I ? Office of Management and Budget Government-wide Guidance for Grants and Agreements. Part 170 ? Reporting Subaward and Executive Compensation Information, Appendix A to Part 170, Section I(a) (a) Reporting of first-tier subawards. 1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that equals or exceeds $30,000 in Federal funds for a subaward to a non-Federal entity or Federal agency. 2. Where and when to report. i. The non-Federal entity or Federal agency must report each obligating action described in paragraph a.1. of this award term to http://www.fsrs.gov. ii. For subaward information, report no later than the end of the month following the month in which the obligation was made. Condition We examined the Federal Funding Accountability and Transparency Act (FFATA) reporting for the Head Start Cluster for the year ended June 30, 2022. The required FFATA reporting submissions pertaining to subrecipient awards were not made. Cause The County did not submit FFATA reporting because they were not aware of the reporting requirements. Questioned Costs No questioned costs were identified. Context Expenditures for the fiscal year 2021-22 totaled $25,414,728. Pass through payments to subrecipients subject to FFATA reporting were $6,172,353. Effect Failure to report subawards greater than $30,000 under FFATA is considered noncompliance with the transparency requirement established by the federal government. Recommendation We recommend that the County update its current practices for managing subaward reporting under the FFATA to ensure that applicable subawards are identified and the required submissions are made timely. Views of Responsible Officials and Corrective Action Plan Management?s response is reported in ?Corrective Action Plan? included in a separate section at the end of this report.