Finding Text
FINDING 2022-003 Condition: The Organization did not report sub-awards on the Federal Sub-award Reporting System (FSRS)Website www.FSRS.gov. The reporting was not done for any of the four sub-awards associated with the major program tested. Amounts passed through to these subrecipients include $428,651 of subrecipient expenditures during 2022. Total new sub-awards made during 2022 were $1,749,827 and total cash paid to sub-award recipients was $43,496 during 2022. Criteria: The Uniform Guidance, Federal Funding Accountability and Transparency Act, 2 CFR Part 170, and the Organization?s federal award contract for the major program require federal award recipients to report sub-awards on the Federal Sub-award Reporting System (FSRS)Website www.FSRS.gov. Prime financial assistance awardees receiving funds directly from HUD are required to report sub-awards and executive compensation information both for the award and sub-awards, where both the initial award is $30,000 or greater or the cumulative award will be $30,000 or greater if funding incrementally as directed by HUD in accordance with OMB guidance. The prime awardee will have until the end of the month plus one additional month after a sub-award is obligated to fulfill the reporting requirement. Cause: The Organization inadvertently missed the reporting requirement. Effect: The Organization did not comply with its reporting requirements. This is considered noncompliance with the federal award program that was tested as a major program. It is also considered a significant deficiency in internal control over compliance, particularly compliance related to reporting, for federal awards. No adjustment to the financial statements was required. Recommendation: The Organization should reevaluate its procedures and controls regarding federal sub-award reporting to ensure proper compliance and should also complete the necessary reporting. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and plans to carry out the noted recommendation.