Finding Text
2023-002 Reporting
Federal Agency: U.S. Department of Commerce
Federal Program: 11.307, Economic Development Cluster, Economic Adjustment Assistance
Condition:
Economic Development and Industrial Corporation of Boston (EDIC) could not provide supporting documentation that EDIC reported subaward information to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) timely. EDIC did submit the subaward information into the FSRS system, however, EDIC could not provide support when specific subaward information was submitted.
Criteria:
Subaward information is required to be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made In addition, 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award.
Cause:
EDIC’s internal controls were not adequately designed in order to support the date EDIC submitted subaward information into the FSRS system
Effect:
Subaward information may not have been submitted timely.
Context:
A sample of two subawards, totaling $12,756,667, out of seven subawards were reviewed. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period.
Questioned Costs:
None
Recommendations:
Management should ensure internal controls are designed to support that the entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and condition of the Federal award which should include documenting when subaward data is entered into the FSRS system.
Management Response:
EDIC entered the required subaward data within the FSRS system timely by utilizing the FSRS’s system function of reopening a prior submission however, supporting documentation of specific subaward information input into FSRS was not maintained. EDIC is in the process of updating its internal controls to maintain support of the submission date into the FSRS system.