Finding Text
Finding 2022-003 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 1801SDRSOC, 10/01/2017 ? 9/30/2019 Federal Assistance Listing/CFDA #93.566, 2101SDRSSS, 10/01/2020 ? 9/30/2023 Federal Assistance Listing/CFDA #93.566, 2102SDRCMA, 10/01/2020 ? 9/30/2022 Federal Assistance Listing/CFDA #93.566, 2201SDRSSS, 10/01/2021 ? 9/30/2024 Federal Assistance Listing/CFDA #93.566, 2202SDRCMA, 10/01/2021 ? 9/30/2023 Refugee and Entrant Assistance ? State Administered Programs Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR Part 170 establishes requirements for recipients? reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA). Condition: We noted the following during testing: a) FFATA report was filed outside the 30-day reporting requirement. Further, FFATA was submitted under the incorrect FAIN and no subaward ID was identified within the FFATA report. Additionally, no support to substantiate a secondary review was completed prior to submission of FFATA report. b) No support could be provided to substantiate a secondary review of two Federal Financial Reports (ORR2s). c) Two amounts reported within a programmatic report (ORR6) did not agree to supporting documentation. Cause: The USAspending.gov website did not provide the correct FAIN as an option when filing FFATA report. The Organization failed to attempt to troubleshoot the error, resulting in untimely submission of the report. In addition, the subrecipient agreement does not identify a subaward ID. Organization could not provide support to substantiate a secondary review of the Federal Financial Reports was completed prior to submission. Documentation used to prepare the programmatic report was not retained by management. Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that the Organization would not be in compliance with the federal award as it relates to reporting. Questioned Costs: None reported Context/Sampling: Included under seven award letters of the federal program, four quarterly federal financial reports (SF-425s) and two quarterly federal financial reports (ORR2s) were reviewed in the Organization?s fiscal year. In addition, one final federal financial report and one semi-annual programmatic report was reviewed in the Organization?s fiscal year. A total of 20 reports were filed during the Organization?s fiscal year. The FFATA report for the only subrecipient who received funds through this program was tested. The quantity and subaward obligation errors were noted as follows: (see table in report) A nonstatistical sample of 8 reports were selected for testing out of a population of 21 reports required to be filed in the fiscal year. Repeat Finding from Prior Years: Yes, prior year finding 2021-004 Recommendation: We recommend that management review internal control procedures over reporting to ensure reports are submitted timely and ensure a documented secondary review and approval is completed prior to report submission. Views of Responsible Officials: Management is in agreement.