Finding Text
2023 – 002
Federal Agency: U.S. Department of Commerce
Federal Program Name: Economic Adjustment Assistance
Assistance Listing Number: 11.307
Federal Award Identification Number and Year: ED22HDQ3070089; 2022-2023
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Other Matters
Criteria or specific requirement: In accordance with the Federal Funding Accountability and Transparency Act of 2006 (FFATA), prime recipients of a federal grant must report each first-tier subaward or subaward amendment that results in an obligation of $30,000 or more in federal funds on a public-facing, OMB-designated, governmentwide website. The report must be submitted by the end of the following month during which the prime recipient makes the subaward (2 CFR 170). The Code of Federal Regulations 2 CFR 200.303 requires the District to establish and maintain effective internal controls over Federal awards.
Condition: During our testing of FFATA reporting requirements for 5 subrecipients of the Economic Adjustment Assistance program, the District failed to report information required by the FFATA for the subawards granted to each of these subrecipients.
Questioned costs: None
Context: FFATA requires the District to report certain information related to awards made to subrecipients greater than or equal to $30,000.
Amounts passed through to all subrecipients under the Economic Adjustment Assistance program, also the total amount of subrecipient payments selected for testing totaled $226,412 during the year ended June 30, 2023.
Cause: The District’s processes and controls did not ensure that FFATA requirements were met.
Effect: Failure to identify awards subject to FFATA and to report subawards in accordance with FFATA results in noncompliance with federal requirements.
Repeat finding: No
Recommendation: We recommend the District establish procedures to identify awards subject to FFATA reporting requirements and report required subaward information in accordance with FFATA.
Views of responsible officials: A procedure has been established and in place for future awards involving sub-recipients. The College closely monitors grant activity to ensure compliance with underlying grant provisions and notes that there is no financial exposure to the College or the granting agency.