Finding 567125 (2024-001)

Finding 2024-001 – Federal Funding Accountability and Transparency Act Reporting (Significant Deficiency) Federal Agency: U. S. Department of Health and Human Services Pass-through Agency: N/A Direct Award Program Name: Head Start Cluster Assistance Listing Number: 93.600 Award Numbers: 05HP000472-03 and 05HP000472-04-00 Category of Finding: Reporting Criteria – Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA), modified in 2 CFR Part 170, direct recipients of grants are required to report first-tier subawards of $30,000 or more to the FFATA Subaward Reporting System (FSRS) no later than the end of the month following the month in which the subaward obligation was made. Condition and Context – During our testing of the reporting compliance requirement related to the Head Start Cluster, it was determined that the FFATA reporting to FSRS was not completed in a timely manner for the subrecipient tested. Cause – Great Lakes Community Action Partnership’s internal controls failed to detect that the FFATA reporting had not been performed in a timely manner. Effect – Failure to submit the required FFATA reports by the end of the month following an award given to a subrecipient results in noncompliance with 2 CFR Part 170 and could impact future funding. Questioned Costs – None Repeat Finding – Yes Recommendation – In the prior year, the subaward was not properly reported and due to the timing of the finding, the current fiscal year reporting requirements were already missed. However, once the FFATA reporting error was identified during the prior year audit, the current fiscal year reporting was submitted. Recommendations from the prior year to establish controls and processes to ensure proper submission of reports in accordance with the requirements of the Federal Funding Accountability and Transparency Act where established but as noted, the reporting deadline to meet fiscal year 2024 reporting requirements had already passed. We recommend that going forward, GLCAP reporting policies and procedures be monitored to ensure future compliance. View of Responsible Officials – Management agrees with this finding. Please see Management’s Corrective Action Plan.