Finding 1055899 (2023-001)

2023-001 CFDA #93.243 Failure to report sub-awardees in accordance with the Federal Funding Accountability and Transparency Act (FFATA) Criteria: Under FFATA, as a prime contract awardee, the Companies are required to report certain subaward information to the federal government using the FFATA Subaward Reporting System (FSRS). The intent of the reporting is to empower every American with the ability to hold the government accountable for each spending decision. The end result is to reduce wasteful spending in the government. Condition: As the prime contract awardee, the Companies entered into a subaward contract and did not report the required subaward information using the FSRS. Context: During the 2023 compliance audit, the auditor attempted to verify the Companies’ compliance with FFATA reporting requirements. It was determined that the Companies, as the prime contract awardee, did not report one subaward. Cause: The Companies do not have processes and procedures in place to identify federal awards that are subject to FFATA reporting. Effect: The Companies did not report one subaward in the FSRS. Recommendation: The Companies should become familiar with the FFATA reporting requirements and the FSRS and establish processes and procedures to identify and report on awards subject to the requirements. Views of Responsible Official: See management’s Corrective Action Plan on page 32.