Audit 403122

Finding 2024-001: Timeliness of Reporting Federal Program: U.S. Department of Health and Human Services Assistance Listing 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance ("SAMHSA") - see below for listing of Federal Award Identification Numbers ("FAIN") Criteria: In accordance with Federal Funding Accountability and Transparency Act ("FFATA") and 2 CFR §170.220, prime recipients of federal grants and cooperative agreements must report first-tier subaward information into Federal Subaward Reporting System ("FSRS") by the end of the month following the month in which the obligation was made. Condition: During our testing of FFATA reporting requirements, we noted that the Organization did not submit required subaward reports to FSRS in a timely manner. Cause: The Organization misunderstood the applicability of FFATA reporting requirements to certain subawards under this program and, as a result, did not submit reports into FSRS until the requirements were clarified and it was determined that FFATA reporting was required. Potential Effect: Untimely reporting of subaward data results in noncompliance with FFATA and may reduce transparency into federal spending. Continued noncompliance could subject the Organization to increased federal or pass-through monitoring, corrective action requirements, or other administrative actions by the federal awarding agency. Questioned Costs: None. This finding relates to reporting compliance and does not result in questioned costs. Context: 2 of 3 total subrecipients were selected for testing. The sample was not statistically valid. Transactions Tested 2 Subaward Not Reported 0 Report Not Timely 2 Subaward Amount Incorrect 0 Subaward Missing Key Elements 0 Dollar amount of Tested Transactions $464,815 Subaward Not Reported $0 Report Not Timely $464,815 Subaward Amount Incorrect $0 Subaward Missing Key Elements $0 Recommendation: We recommend that the Organization establish and document a formal internal control process over FFATA reporting. Such controls should include a month end compliance calendar or tracking mechanism to identify subawards subject to FFATA, clearly assigned reporting responsibilities, and a secondary supervisory review to ensure that all required subaward reports are submitted accurately and timely in FSRS. Views of responsible officials: Management of the Organization agrees with the finding. FAIN included in the above finding: Number Award Period 1H79TI083701-01 May 2021-May 2024 5H79TI080903-03 September 2018-September 2023 H79TI085195-01 September 2022-September 2027 1H79TI084419-01 September 2021-September 2026 6H79SM082420-01 September 2019-September 2024 1H79SM089500-01 September 2023-September 2028 1H79TI086935-01 September 2023-September 2028 1H79TI086419-01 September 2023-September 2028