Finding Text
Finding No. 2022-003: Reporting ? Compliance Finding and Material Weakness in Internal Control Over Compliance ALN 11.307 ? Economic Adjustment Assistance, Grant Period: January 1, 2022 to September 30, 2022, Grant Number ED22HDQ3070070 Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA), prime recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The prime recipient is required to file a FFATA subaward report by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. Condition and Context The League did not file a FFATA subaward report for its three subrecipients timely. All FFATA sub-award reports were filed after September 30, 2022, which was more than a month after the League awarded its subrecipients with grants more than $30,000. Cause The League was unaware of the compliance requirement. Also, there were no written policies or procedures for employee guidance. Effect The League was late in submitting the required FFATA subaward reports, which resulted in a noncompliance with the reporting requirements under the grant agreement. Repeat Finding No. Questioned Cost None Recommendation We recommend that the League implement procedures and enhance internal controls to ensure appropriate and timely compliance with all applicable federal regulations. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.