Finding Text
ASSISTANCE LISTING 11.307 - ECONOMIC ADJUSTMENT ASSISTANCE DIRECT AWARD FROM U.S. DEPARTMENT OF COMMERCE GRANT AWARD NUMBERS: 08-79-05298; 113048 FINDING NO. 2022-002: NON-COMPLIANCE AND SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER NONCOMPLIANCE WITH REPORTING REQUIREMENTS. Condition: SER-Jobs, as a direct recipient of the Economic Adjustment Assistance (EAA) grant, did not comply with the reporting requirements under The Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, (hereafter referred as the ?Transparency Act?) that are codified in 2 CFR Part 170. SER-Jobs did not register with the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and did not report contractual payments of $30,000 or more made from use of federal funds provided under EAA grant. Criteria: Under the Transparency Act codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards and subcontracts of $30,000 or more to the FSRS. Cause: Program compliance manager was not aware of the reporting requirements under the Transparency Act. Perspective Information: SER-Jobs executed the grant agreement with U.S. Department of Commerce in October 2019. Per management, the terms of the grant agreement did not clearly indicate compliance with the reporting requirements under the Transparency Act and came to know about this requirement during the audit. Questioned Costs: None noted. Effect or Potential Effect: SER-Jobs is not in compliance with the requirements of the Transparency Act. Identification of Repeat Finding: Not applicable since this is a new finding. Recommendation: We recommend that SER-Jobs register with FSRS and report subaward data through FSRS to comply with the requirements of the Transparency Act. Views of Responsible Officials: Management does not disagree with this finding. See management?s corrective action plan on page 33.