Finding 622461 (2022-002)

Questioned Costs $ ? Finding No. 2022 002: Federal Funding Accountability and Transparency Act Reporting Federal Agency: U.S. Department of Agriculture ? Food and Nutrition Service Assistance Listing Number and Title: 10.555 ? National School Lunch Program Condition During our audit, we noted two instances in which the Department did not complete the reporting required by Section 2, Full Disclosure of Entities Receiving Federal Funding, of the Federal Funding Accountability and Transparency Act (?FFATA?) for subgrants made during 2022. We also noted inaccurate information within the FFATA reports submitted for the two subgrants made during 2022. Criteria Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA requires an entity to report subcontracts made under federally-awarded contracts by the end of the month following the month in which the prime recipient awards any subgrant greater than or equal to $30,000. Section 2, Full Disclosure of Entities Receiving Federal Funding, of the FFATA also specifies the data elements to be included by an entity in their reporting submission. Cause The lack of FFATA reporting or the reporting of inaccurate information may be attributed to general oversight by program personnel. Effect Failure to file required reports or the filing of reports which include inaccurate information reduces transparency on the use of program funds and represents an instance of noncompliance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200. Context A sample of 25 subgrants greater than or equal to $30,000 totaling $2,871,727 were selected for audit from a population of $5,013,401 in subgrants greater than or equal to $30,000 from the National School Lunch Program. Our test found two instances in which a FFATA report was not completed in a timely manner and two instances in which the information included in a FFATA report was inaccurate. Our sample was a statistically valid sample. Repeat Finding This is not a repeat finding. Recommendation We recommend that program personnel ensure that required FFATA reports are completed in a timely and accurate manner. Cause and View of Responsible Officials In 2022, the unique entity identifier used by entities when conducting business with the federal government changed from the Data Universal Numbering System to the Unique Entity ID. As a result of this transition, the Federal Funding Accountability and Transparency Act Subaward Reporting System experienced issues reporting awards made to some sub-awardees.