Finding Text
2022-001 ? Internal Control over Compliance and Compliance with Reporting Information on the Major Federal Program: Federal Agency: Department of Interior Program Name: National Park Service Second Century Endowment and Appropriation Assistance Listing Number: 15.U01 Award Number: H.R. 4680/P.L. 114-289 Award Period: October 1, 2021 to September 30, 2022 Criteria ? The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. In accordance with the requirements 2 CFR ?1402.300(b), a non-Federal entity is responsible for complying with all requirements of the Federal award. For all Federal awards, this includes the provisions of the Federal Funding and Accountability Act (FFATA), which includes requirements on executive compensation, and also requirements implementing the Act for the non-Federal entity at 2 CFR part 25, Financial Assistance Use of Universal Identifier and System for Award Management and 2 CFR part 170, Reporting Subaward and Executive Compensation Information. In accordance with 2 CFR Part 170, Appendix A, under FFATA, the Foundation is required to collect and report information on each subaward or amendment of $30,000 or more in federal funds in the FFATA Subaward Reporting System. Condition ? During our testing of reporting, we selected five subrecipient awards. For all samples tested, there were no actions taken by management to perform the mandatory FFATA requirements. Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 5 5 5 Not applicable ? no report was submitted Not applicable ? no report was submitted Dollar Amount of Tested 2022 Subawards Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements $ 1,889,500 $ 1,889,500 $ 1,889,500 Not applicable ? no report was submitted Not applicable ? no report was submitted Cause - The Foundation did not have adequate policies and procedures in place to ensure compliance with the FFATA filing requirements. Effect or Potential Effect - Failure to comply with the reporting requirements of the Uniform Guidance could result in noncompliance and awarding agency taking administrative action. Questioned Costs ? None. Context - This is a condition identified based upon our review of the Foundation?s compliance with specified requirements. The sample was selected based on a non-statistical basis. The prevalence of these finding is detailed in the condition section above. Repeat Finding ? This is not a repeat finding. Recommendation ? BDO recommends that the Foundation immediately establish policies and procedures to ensure FFATA requirements are satisfied for subrecipients meeting the requirements. Views of Responsible Officials ? The Foundation?s management agrees with the finding and recommendation. The planned corrective actions are presented in the Foundation?s management?s corrective action plan attached as Appendix B.