Finding 624936 (2022-004)

Reference Number: 2022-004 Compliance Requirement: Reporting Type of Finding: Internal Control and Compliance Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Assistance Listing Number(s) and Title(s): ALN 97.036 ? Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Federal Awarding Agency: U.S. Department of Homeland Security Federal Award Number: Various Pass-through Entity: Various Pass-through Award Number: Various Questioned Costs: None The Alabama Emergency Management Agency did not have procedures in place to ensure that applicable first-tier subaward information was reported to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Finding The Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred as the "Transparency Act" that are codified in 2 CFR Part 170, requires recipients (i.e., direct 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 Uniform Guidance, 2 CFR Part 200, Appendix XI Compliance Supplement, May 2022, requires the Alabama Emergency Management Agency to report applicable first-tier subawards and contracts information as required in the "Transparency Act". The Alabama Emergency Management Agency (EMA) failed to provide the requested subaward letters and FSRS reports containing key data elements for the sample population of fourteen (14) first-tier subawards. The Alabama Emergency Management Agency did not have procedures in place to ensure that applicable first-tier subaward information was reported to the FSRS, resulting in a failure to provide a full disclosure to the public of all entities or organizations receiving federal funds during fiscal year 2022. Recommendation The Alabama Emergency Management Agency (EMA) should develop, maintain, and implement effective procedures to ensure compliance with the Federal Funding Accountability and Transparency Act (FFATA).