Criteria
As required by the Uniform Guidance, a non-federal entity may not earn or keep any profit resulting from federal assistance, unless explicitly authorized by terms and conditions of the award.
Condition
Mending Hearts elected to charge the de minimis rate of 10 percent of modified total direct costs (“MTDC”) to the grant but did not calculate the de minimis rate using the appropriate base.
Cause
Rather than calculating 10 percent of MTDC to determine reimbursement requests, Mending Hearts allocated and requested reimbursement of indirect costs based on the total indirect costs included in the grant budget.
Context
The year ended June 30, 2023 represents the first year in which Mending Hearts has received a grant including budgeted indirect costs. Testing of indirect costs was based on the total direct costs requested for reimbursement during the fiscal year and, therefore, 100% of the indirect costs were tested.
Auditor’s Recommendations
Mending Hearts should determine MTDC prior to calculating the amount of indirect costs to include in grant reimbursement requests. The calculation should be reviewed by someone other than the individual preparing the calculation.
Views of Responsible Officials
Management agrees with the auditor’s recommendation and will calculate indirect cost reimbursement requests using the appropriate base going forward, and will implement appropriate review and approval procedures over the process. A future reimbursement request will be adjusted to offset the excess funding that was received during the year ended June 30, 2023.
Effect
Mending Hearts received excess funding of indirect costs of approximately $9,300 during the fiscal year. As correction of the excess funding will be made on a future reimbursement request, this largely represents a timing difference between costs incurred and the reimbursement of the related indirect costs allowed under the terms of the grant.
Questioned Costs
Questioned costs did not meet the $25,000 reporting threshold.
Criteria
Under the requirements of the Federal Funding Accountability and Transparency Act (“FFATA”), 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”) no later than the last day of the month following the month in which the subaward was made.
Condition
Mending Hearts did not timely report the $200,000 subaward granted to Meharry Medical College during the year ending June 30, 2023.
Cause
Mending Hearts was not aware of the FFATA reporting requirement.
Effect
Mending Hearts did not provide timely reporting of the $200,000 subaward granted to Meharry Medical College. Upon becoming aware of the filing requirements, Mending Hearts completed the required filing.
Questioned Costs
None.
Context
The year ended June 30, 2023 represents the first year in which Mending Hearts was subject to the FFATA reporting requirement, and the PPW grant is the only grant received during the year that included a pass-through of funding to a subrecipient. Testing, therefore, included the entire population of grants subject to the reporting requirement.
Auditor’s Recommendations
Mending Hearts should gain an understanding of when FFATA reporting is required, carefully review awards to identify grants subject to the reporting requirement, identify key data elements required for complete and accurate reporting, and ensure that reporting is completed no later than the last day of the month following the month in which a subaward is made.
Views of Responsible Officials
Management agrees with the auditor’s recommendation. On March 22, 2024, Mending Hearts registered with the FSRS and filed the required FFATA report associated with PPW subaward granted to Meharry Medical College.
Criteria
As required by the Uniform Guidance, a non-federal entity may not earn or keep any profit resulting from federal assistance, unless explicitly authorized by terms and conditions of the award.
Condition
Mending Hearts elected to charge the de minimis rate of 10 percent of modified total direct costs (“MTDC”) to the grant but did not calculate the de minimis rate using the appropriate base.
Cause
Rather than calculating 10 percent of MTDC to determine reimbursement requests, Mending Hearts allocated and requested reimbursement of indirect costs based on the total indirect costs included in the grant budget.
Context
The year ended June 30, 2023 represents the first year in which Mending Hearts has received a grant including budgeted indirect costs. Testing of indirect costs was based on the total direct costs requested for reimbursement during the fiscal year and, therefore, 100% of the indirect costs were tested.
Auditor’s Recommendations
Mending Hearts should determine MTDC prior to calculating the amount of indirect costs to include in grant reimbursement requests. The calculation should be reviewed by someone other than the individual preparing the calculation.
Views of Responsible Officials
Management agrees with the auditor’s recommendation and will calculate indirect cost reimbursement requests using the appropriate base going forward, and will implement appropriate review and approval procedures over the process. A future reimbursement request will be adjusted to offset the excess funding that was received during the year ended June 30, 2023.
Effect
Mending Hearts received excess funding of indirect costs of approximately $9,300 during the fiscal year. As correction of the excess funding will be made on a future reimbursement request, this largely represents a timing difference between costs incurred and the reimbursement of the related indirect costs allowed under the terms of the grant.
Questioned Costs
Questioned costs did not meet the $25,000 reporting threshold.
Criteria
Under the requirements of the Federal Funding Accountability and Transparency Act (“FFATA”), 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”) no later than the last day of the month following the month in which the subaward was made.
Condition
Mending Hearts did not timely report the $200,000 subaward granted to Meharry Medical College during the year ending June 30, 2023.
Cause
Mending Hearts was not aware of the FFATA reporting requirement.
Effect
Mending Hearts did not provide timely reporting of the $200,000 subaward granted to Meharry Medical College. Upon becoming aware of the filing requirements, Mending Hearts completed the required filing.
Questioned Costs
None.
Context
The year ended June 30, 2023 represents the first year in which Mending Hearts was subject to the FFATA reporting requirement, and the PPW grant is the only grant received during the year that included a pass-through of funding to a subrecipient. Testing, therefore, included the entire population of grants subject to the reporting requirement.
Auditor’s Recommendations
Mending Hearts should gain an understanding of when FFATA reporting is required, carefully review awards to identify grants subject to the reporting requirement, identify key data elements required for complete and accurate reporting, and ensure that reporting is completed no later than the last day of the month following the month in which a subaward is made.
Views of Responsible Officials
Management agrees with the auditor’s recommendation. On March 22, 2024, Mending Hearts registered with the FSRS and filed the required FFATA report associated with PPW subaward granted to Meharry Medical College.