Finding 971127 (2023-003)

Finding 2023-003: Noncompliance with Reporting Requirements under the Federal Funding Accountability and Transparency Act (FFATA) Identification of federal programs: Program Title: Community Economic Adjustment Assistance for Compatible Use and Joint Land Use Studies Assistance Listing Number: 12.610 Award Identification: W9124J2120002 Federal Agency: U.S. Department of Defense, Office of Local Defense Community Cooperation Criteria or Specific Requirement: Under the requirements of the Federal Funding and Transparency Act (FFATA) (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, 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 requirements pertain to recipients (i.e., direct recipients) of grants or cooperative agreements who make first-tier subawards and contractors (i.e., prime contractors) that award first-tier subcontracts. There are limited exceptions as specified in 2 CFR Part 170 and the Federal Acquisition Regulation (FAR). Condition: The Fund works with subrecipients and some of its subawards require compliance with the FFATA requirement. Cause: Historically the Fund has had few subawards and therefore has not developed procedures to ensure subawards are evaluated for reporting requirements under FFATA and if required, the reporting is completed within the required timeframe. Effect: The Fund is not in compliance with FFATA reporting requirements. Questioned Costs: None Context: The Fund did not report its one subaward under this program as required to FSRS system. Repeat finding: No Recommendation: We recommend management implement procedures to ensure subawards are evaluated for reporting requirements under FFATA and if required, the reporting is completed within the required timeframe required. Views of responsible individuals: Management concurs with and will implement the recommendation. See corrective action plan.