Finding 1145259 (2024-002)

Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA), prime 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). The prime recipient is required to file a FFATA subaward report by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. Condition and Context AFT failed to file a FFATA subaward report for its subrecipients for the year ended September 30, 2024 after the AFT awarded its subrecipients with grants more than $30,000. Cause AFT was unaware of the compliance requirement. As a result, there were no written policies or procedures directing employees responsible for compliance reporting to file such reports in a timely basis. Effect AFT was not in compliance with the reporting requirements under the Uniform Guidance. Questioned Cost None, as a reporting compliance finding that is no impact on allowable costs associated with the subawards. Recommendation We recommend that AFT implement procedures and enhance internal controls to ensure appropriate and timely compliance with all applicable federal regulations. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.