Finding 503177 (2023-005)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2023
Accepted
2024-10-18
Audit: 325232
Organization: Wallowa Resources, Inc. (OR)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Wallowa Resources failed to report federal funds to subrecipients due to a system error with the FSRS portal.
  • Impacted Requirements: This non-compliance violates the OMB and FFATA reporting requirements, putting Wallowa Resources outside USDA's Terms and Conditions.
  • Recommended Follow-Up: Wallowa Resources should resolve the portal issue with FSRS and ensure timely reporting for current and future obligations.

Finding Text

2023-005: U.S. Department of Agriculture Soil and Water Conservation Assistance Listing #10.902 Reporting Material Weakness in Internal Control over Compliance and Material Non-Compliance Grant Award Number: NR230436XXXXC017 Criteria: The OMB requires that, in accordance with the Federal Funding Accountability and Transparency Act (FFATA), prime award recipients must report on federal funds distributed to first-tied subrecipients no later than the end of the month following the month in which the obligation was made. The information is to be reported using the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: Due to an error with the online submission portal, Wallowa Resources was unable to submit the required information to FSRS. Cause: While Wallowa Resources has a formal policy for ensuring reporting is completed timely, the error with the online submission portal prevented the reports from being submitted. Wallowa Resources contacted the designated federal agreements officer, and has not received a response. Effect: Wallowa Resources is outside the USDA Terms and Conditions included in the Notice of Award. Questioned Costs: None Context/Sampling: There were four subrecipients within the scope of this audit, all of which were assessed and were not submitted. Repeat Finding from Prior Year: No Recommendation: We recommend Wallowa Resources work with the FSRS to resolve the system error and submit the report for activity occurred in the year ended December 31, 2023 and for future obligations to first-tier subrecipients in a timely manner. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

2023-005: U.S. Department of Agriculture - Soil and Water Conservation - Assistance Listing #10.902 Reporting: Material Weakness in Internal Control over Compliance and Material Non-Compliance Finding Summary: Due to an error with the online submission portal, Wallowa Resources was unable to submit the required information to FSRS. Corrective Action Pan: USDA fixed the online submission portal in September 2024, and Wallowa Resources immediately submitted the required information to FSRS. Wallowa Resources will ensure that any future obligations to first-tier subrecipients will be reported via FSRS in a timely manner. Responsible Individual(s): Joni Maasdam, Finance Manager. Anticipated Completion Date: Completed September 2024.

Categories

Questioned Costs Subrecipient Monitoring Material Weakness Reporting

Other Findings in this Audit

  • 503175 2023-003
    Significant Deficiency
  • 503176 2023-004
    Significant Deficiency
  • 1079617 2023-003
    Significant Deficiency
  • 1079618 2023-004
    Significant Deficiency
  • 1079619 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.902 Soil and Water Conservation $867,860
10.664 Cooperative Forestry Assistance $307,155
10.699 Partnership Agreements $241,764
10.665 Schools and Roads - Grants to States $104,380
84.425 Education Stabilization Fund $47,500
15.230 Invasive and Noxious Plant Management $39,408
15.657 Endangered Species Recovery Implementation $29,929
15.246 Threatened and Endangered Species $19,099
10.932 Regional Conservation Partnership Program $9,543
10.717 Infrastructure Investment and Jobs Act Restoration/revegetation $2,187
10.715 Infrastructure Investment and Jobs Act Collaborative Forest Landscape Restoration Program $739