Finding 1169011 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-01-14
Audit: 381666

AI Summary

  • Core Issue: United Way did not report first-tier subawards over $30,000 to SAM.gov, violating the Transparency Act.
  • Impacted Requirements: Compliance with the Federal Funding Accountability and Transparency Act (FFATA) is mandatory for federal grant recipients.
  • Recommended Follow-Up: Management should establish and document controls to ensure future compliance with reporting requirements.

Finding Text

Finding: 2025-001 Federal Agency: Department of Health and Human Services Federal Program: Cooperative Agreement to Support Navigators in Federally-facilitated Exchanges Federal Award Number: 93.332 Award Year: 2025 Type of Finding: Significant Deficiency and Noncompliance Compliance Requirement: Reporting Criteria: Under the requirements of the Federal Funding Accountability and Transparency Act (“FFATA”) (Pub. L. No. 109-282), as amended, hereafter referred as the “Transparency Act” that are codified in 2 CFR Parts 25 and 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the System for Award Management (SAM.gov). Condition: We noted United Way had first-tier subawards greater than $30,000 and did not report the required information in the SAM.gov system in compliance with the Transparency Act. Questioned Costs: None Context: United Way failed to submit information required under The Transparency Act. Cause: Management did not perform FFATA reporting for first-tier subawards made under the federal program. Effect or potential effect: Failure to comply with the compliance requirements could result in subaward information not being appropriately reported. Repeat Finding: Yes, 2022-003 Recommendations: We recommend management ensure controls are in place to adhere to reporting requirements. Views of responsible officials: Management has acknowledged the FFATA requirement and is implementing a process to ensure reporting for all future eligible subawards. A documented procedure will be incorporated into compliance controls for the 2025 fiscal year onward.

Corrective Action Plan

The grant accounting team will create grant abstracts summarizing compliance requirements and key dates. These will then be added to the accounting department’s comprehensive checklist to ensure proper reporting guidelines are met on time. This will be completed by December 31, 2025 The grant accounting Team will submit information on first-tier subawards to SAM.gov for eligible grants by December 31, 2025.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 1169010 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.332 COOPERATIVE AGREEMENT TO SUPPORT NAVIGATORS IN FEDERALLY-FACILITATED EXCHANGES $1.43M
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $1.01M
21.009 VOLUNTEER INCOME TAX ASSISTANCE (VITA) MATCHING GRANT PROGRAM $330,000
93.434 EVERY STUDENT SUCCEEDS ACT/PRESCHOOL DEVELOPMENT GRANTS $249,638
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $23,649