Finding Text
Finding 2024-005
U.S. Department of Health and Human Services
Program Title: Global AIDS
Assistance Listing Number: 93.067
Federal Award Year: 2023-2024
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, 2024, it was noted that the Organization did not comply with the FFATA subaward reporting requirements. Specifically, subawards exceeding $30,000 were not reported in the FFATA Subaward Reporting System (FSRS).
Cause:
The noncompliance was due to a lack of internal controls and procedures to ensure timely FFATA reporting. Staff responsible for grant reporting were unaware of the requirements.
Effect:
Failure to comply with FFATA requirements reduces the transparency and accountability of federal spending and may impact future funding or trigger additional monitoring.
Recommendation:
We recommend that the Organization establish formal written policies and procedures to ensure compliance with FFATA reporting requirements. This should include training for responsible personnel, monitoring of subaward obligations, and a calendar or automated reminders to ensure timely reporting.