Finding Text
Finding 2024-005: 10.761 - U.S. Department of Agriculture - Water and Waste Technical Assistance and
Training - Material Weakness
Compliance
Requirement: Reporting
Criteria: Per Federal Funding Accountability and Transparency Act Code of Federal Regulations
(CFR) Part 170, recipients of grants are required to report first-tier subawards of $30,000
or more to the Federal Funding Accountability and Transparency Act Subaward Reporting
System (FSRS).
Condition: During our testing of internal controls over compliance related to reporting, we noted
EWB-USA only had one subaward during the year ended December 31, 2024, in the
amount of$209,589. EWB-USA did not report the subaward information to the FSRS and
accordingly failed to comply with reporting requirements and key data elements.
Questioned Costs: None
Cause: EWB-USA did not have adequate controls in place to ensure compliance with applicable
federal requirements. Effect: EWB-USA was not in compliance with reporting subaward data through FSRS as
prescribed in the Uniform Guidance.
Recommendation: We recommend that EWB-USA implement procedures and controls to ensure that
subawards of $30,000 or more are properly reported to the FSRS in a timely manner.
Response: 1. Develop policies for subaward reporting, and implement reporting procedures
including FFAT A (Federal Funding Accountability and Transparency Act)
subaward reporting requirements for awards exceeding the required threshold.
2. Provide training to relevant staff on the new procedures for subaward reporting
and the importance of compliance with federal regulations.