Finding Text
Finding 2023-004
Reporting – Material Weakness in Internal Control Over Compliance and Material Noncompliance
Agency
Department of Health and Human Services
Program
ALN: No. 93.224 / 93.527 Health Center Program Cluster
Award Year
2023
Criteria or
Specific
Requirement
In accordance with 2 CFR part 170, the Borough was required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made.
Condition
The required reports were not submitted during the year. Controls were not in place to evaluate the applicability of the reporting requirement and ensure the reports were submitted timely.
Cause
The Borough received funding related to the American Rescue Plan Act Funding for Health Centers (ARPA). The Borough was not aware that this subaward reporting requirement was applicable for funds received under ARPA.
Effect or potential
effect
The Borough was not in compliance with subrecipient reporting requirements
Questioned Costs
None noted.
Context
The auditor requested the reports for the Borough’s subawards that were required under FSRS. The Borough was unable to provide the requested supports as they had not been filed.
Identification as a Repeat Finding
Yes. 2022-004 Material Weakness in Internal Control over Compliance and Noncompliance
Recommendation
The Borough should implement internal control procedures to evaluate applicability of grant reporting requirements, especially when funding sources or nature of grant awards change.
Views of responsible officials
Management agrees with the finding. The Borough has taken corrective action for the audit finding. New controls are being put into place to ensure that all subawards over $30,000 are properly and timely reported.