Finding 570043 (2022-001)

Part III - Findings and Questioned Costs Relating to Federal Awards 2022-001 Performance and Financial Reports Submissions Compliance Reporting Category Material weakness in Internal Control and Material Noncompliance ALN 12.607 Program Community Economic Adjustment of Establishment, Expansion, Realignment, or Closure of a Military Installation Federal Agency US Department of Defense Criteria Office of Economic Adjustment, Department of Defense, Notice of Award 21. Award Performance Goals Reporting Type Frequency Due Date Federal Financial Report Semi-Annual 2022-09-30 Semi-annual Federal Financial Report (SF-425) Grantees that received awards on or after October 1, 2009, are required by law to submit semi-annual Federal Financial Reports (FFR) (also known as Standard Form-425) throughout the grant's entire period of performance. They are due twice during the calendar year. This Report must be submitted no later than 30 days after its due date, except the final SF-425, which is due 90 days after the end date of the grant's performance period. Condition The Authority did not comply with the submission due dates of the Federal Financial Reports established by the OEA in their Notice of Award. In addition, from five reports examined to test compliance with due dates, the submission date could not be verified in four instances, including the Federal Financial Report. Cause Lack of control activities to ascertain compliance with OEA Terms and Conditions related to reporting. Effect If the Federal awarding agency or passthrough entity determines that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding agency or passthrough entity may take one or more of the following actions, as appropriate in the circumstances: (a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or more severe enforcement action by the Federal awarding agency or passthrough entity. (b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance. (c) Wholly or partly suspend or terminate the Federal award. Part III - Findings and Questioned Costs Relating to Federal Awards (Continued) 2022-001 Performance and Financial Reports Submissions (Continued) Compliance Reporting Category Material weakness in Internal Control and Material Noncompliance ALN 12.607 Program Community Economic Adjustment of Establishment, Expansion, Realignment, or Closure of a Military Installation Federal Agency US Department of Defense Effect (Continued) (d) Initiate suspension or debarment proceedings as authorized under 2 CFR part 180 and Federal awarding agency regulations (or in the case of a passthrough entity, recommend such a proceeding be initiated by a Federal awarding agency). (e) Withhold further Federal awards for the project or program. (f) Take other remedies that may be legally available. Questioned Costs None Recommendation We recommend strengthening monitoring procedures to ensure compliance with the due dates and other provisions of the required reports by the OEA terms and conditions. Prior year finding This finding is similar to a prior year finding identify as 2021-003 Views of Responsible Official (Unaudited) Refer to Corrective Action Plan