Finding 505052 (2024-001)

Noncompliance and Significant Deficiency in Internal Controls over Compliance for Reporting Identification data: U.S. Department of Agriculture – Inflation Reduction Act Urban & Community Forestry Program, Assistance Listing No. 10.727, Agreement Identifying No. 24-CA-11132544-D052 & 24-CA-11132544-015. Criteria: Appendix A to Part 170 of Title 2 CFR, Subtitle A, Chapter 1 describes the first-tier subaward reporting requirements under the Federal Funding Accountability and Transparency Act (FFATA), which requires prime recipients to report first-tier subawards to non-Federal entities equal to or exceeding $30,000 no later than the end of the month following the month in which the obligation was made. Condition: The Foundation failed to report its first-tier subawards subject to FFATA requirements by the end of the month following the month in which the obligation was made for five of the seven subawards tested. Additionally, the Foundation reported the incorrect amount of funds awarded in one of the seven subawards tested above. Cause: A breakdown in the Foundation’s internal controls over reporting did not allow the Foundation to meet the reporting requirements of the program. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Foundation from complying with the reporting requirements of the program. Identification of a Repeat Finding: New finding. Recommendation: The Foundation should review its system of internal controls over reporting to determine improvements that can be made to ensure the Foundation actively tracks and adheres to reporting requirements outlined in its award agreements and included in the CFR. Views of Responsible Officials: The Foundation will implement new controls to ensure compliance with the 30 day requirement.