Finding Text
Federal agency: Department of State
Federal program title: National Security Language & Student Exchange
Federal Assistance Listing Number: 19.415 & 19.009
Award Period: August 22, 2023 – September 30, 2026 & November 9, 2023 – September 30, 2025
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of reporting, especially regarding special reports for FFATA. The Organization should have internal controls designed to ensure compliance with those provisions and follow applicable procedures that demonstrate the report date on FSRS is no later than the last day of the month following the month in which the subaward amendment obligation was made.
Condition: During our testing, we noted that the Organization submitted the original FFATA reports on time. However, the obligated amounts reported on the FFATA reports did not agree with the final signed subaward agreement with modified final obligation amount. The Organization updated the FFATA reports in the system; however, the Organization was not able to produce evidence as to when the modification to the report was updated in the system.
Questioned costs: None
Context: During our testing, we noted that the Organization submitted the original FFATA reports on time within the required compliance timeline. However, these did not agree to the final subaward obligated amounts. As a result, we were unable to see that these final obligated amounts were updated within the FSRS portal no later than the last day of the month following the month in which the final subaward obligation contract is executed (action date).
Cause: The Organization was not able to produce evidence from the FSRS portal when the final obligation amounts were updated within the system.
Effect: The obligated amounts originally reported on time did not reflect the final obligated amounts per the subaward agreements and evidence did not exist to support when the obligated amounts were updated.
Recommendation: We recommend the Organization to design controls to ensure that there is an internal control designed to validate the timeline where the final FFATA reports were submitted/updated in the FSRS system. If evidence of the timeline is not readily available, we recommend contacting the FSRS portal help desk to obtain appropriate evidence.
Views of responsible officials: There is no disagreement with the audit finding.