Audit 401280

Finding 2025-001 U.S. Department of Health and Human Services Program Title: Global AIDS Assistance Listing Number: 93.067 Federal Award Year: 2024-2025 Type of Finding: Reporting – Internal Control and Compliance (Material Weakness) Criteria: In accordance with 2 CFR 170.200 and the Federal Funding Accountability and Transparency Act (FFATA) requirements, recipients of federal grants are required to report subawards of $30,000 or more to FSRS no later than the end of the month following the month in which the subaward was obligated. Condition: During the audit of the Organization for the fiscal year ending September 30, 2025, it was noted that the Organization did not timely file the FFATA subaward reports. Specifically, subawards exceeding $30,000 were not reported in the FFATA Subaward Reporting System by the end of the month following the month in which the subaward was obligated or the beginning of the fiscal year for continuing awards. Cause: Management became aware of this requirement midway through the fiscal year. At that point, management implemented a process to ensure the information was reported. As a result, while the information was reported accurately, it was not reported timely. Effect: Failure to comply with FFATA requirements reduces the transparency and accountability of federal spending and may impact future funding or trigger additional monitoring. Questioned Costs: None to report. Identified as a Repeat Finding: This finding was reported as Finding 2024-005. Recommendation: We recommend that the Organization continue to monitor new and existing subrecipients to ensure compliance with FFATA reporting requirements. Views of Responsible Officials: Management concurs with the finding. The Organization acknowledges the oversight in not reporting subawards exceeding $30,000 in the FFATA Subaward Reporting System (FSRS), which was due to a lack of awareness regarding this specific requirement after hand-over transitions to new staff. To address this, the Organization has implemented formal procedures to ensure full compliance with all FFATA reporting. These include clearly defined responsibilities and training of relevant staff and internal reviews to ensure timely submission of required reports. The organization is committed to strengthening internal controls to ensure transparency, maintain compliance with federal grant regulations, and prevent recurrence of this issue. Responsible Person: Director, Ethics & Compliance.