Finding 1179549 (2025-002)

2025 002 Reporting Federal Funding Accountability and Transparency Act U.S. Department of State: Bureau of Population and Refugees and Migration: Overseas Refugee Assistance Program for Middle East and North Africa: Provision of lifesaving protection & health response for Syrian refugees and vulnerable Lebanese (ALN 19.519, award number SPRMCO24CA0321) Overseas Refugee Assistance Program for South Asia: Comprehensive, Integrated Multi Sector Response for Rohingya Refugees and Host Communities in Cox’s Bazar (Y2) (ALN 19.523, award number SPRMCO24CA0239) U.S. Agency for International Development: USAID Foreign Assistance for Programs Oversees: Improved (Re)integration Services Activity (ALN 98.001, award number 72052224CA00004) Lifesaving Integrated Humanitarian Services in Underserved Areas of Sudan (ALN 98.001, award number 720BHA22GR00218) Statistically valid sample: No, and it was not intended to be. Repeat finding: Yes (2024 001). Finding Type: Significant deficiency and noncompliance Criteria: Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109 282), as amended by Section 6202 of Public Law 110 252, (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 System for Award Management (SAM.gov). Aspects of the Transparency Act that relate to subaward reporting (1) under grants and cooperative agreements were implemented in OMB in 2 CFR Part 170 and (2) under contracts, by the regulatory agencies responsible for the Federal Acquisition Regulation (FAR at 5 FR 39414 et seq., July 8, 2010). The requirements pertain to recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards and contractors (i.e., prime contractors) that award first tier subcontracts. Title 45 U.S. Code of Federal Regulations Part 75 (45 CFR 75), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards for HHS Awards, section 75.2 defines Subaward as an award provided by a pass through entity to a subrecipient for the subrecipient to carry out part of a federal award received by the pass through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass through entity considers a contract. Further, 45 CFR 75.2 defines Subrecipient as a non federal entity that receives a subaward from a passthrough entity to carry out part of a federal award; but does not include an individual that is a beneficiary of such award. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency. Additionally, per 2 CFR 200.303, non federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The following subaward data elements to be reported include the following: • Subawardee Name • Subawardee Unique Entity Identifier • Amount of Subaward • Subaward Obligation/Action Date • Date of Report Submission • Subaward Number • Subaward Project Description • Subawardee Names and Compensation of Highly Compensated Officers, if applicable The information is required to be reported in SAM.gov no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made. Condition and context: For ALN 19.519, there were 3 new or amended subawardee agreements entered into during fiscal year 2025 that required FFATA reporting. We selected 2 of these agreements for test work and noted that while all the key data elements were accurately submitted, the information for both agreements was not submitted timely. Both of the agreements were entered into on September 30, 2024 and had a submission due date of October 31, 2024. SAM.gov notes the submission date for both agreements to be August 21, 2025. During our testwork over this program, we noted IRC did not establish control procedures to submit FFATA reports for all subawards on a timely basis. We noted the following exceptions:7 Transactions Tested: 2 Subaward not reported: 0 Report not timely: 2 Subaward amount incorrect: 0 Subaward incorrect key elements: 0 Dollar amount of tested transactions: $403,678 Subaward not reported: $0 Report not timely: $403,678 Subaward amount incorrect: $0 Subaward incorrect key elements: $0 For ALN 19.523, there were 4 new or amended subawardee agreements entered into during fiscal year 2025 that required FFATA reporting. We selected 2 of these agreements for test work and noted that while all the key data elements were accurately submitted, the information for both agreements was not submitted timely. Both of the agreements were entered into on September 1, 2024 and had a submission due date of October 31, 2024. SAM.gov notes the submission dates to be December 4, 2025 and December 8, 2025. During our testwork over this program, we noted IRC did not establish control procedures to submit FFATA reports for all subawards on a timely basis. We noted the following exceptions: Transactions Tested: 2 Subaward not reported: 0 Report not timely: 2 Subaward amount incorrect: 0 Subaward incorrect key elements: 0 Dollar amount of tested transactions: $759,550 Subaward not reported: $0 Report not timely: $759,550 Subaward amount incorrect: $0 Subaward incorrect key elements: $0 For ALN 98.001, there were 23 new or amended subawardee agreements entered into during fiscal year 2025 that required FFATA reporting. We selected 5 for test work and noted that while all the key data elements were accurately submitted, the information for 4 of these agreements was not submitted timely. Two of these agreements were entered into on November 1, 2024, one was entered into on November 22, 2024 and the last was entered into on December 1, 2024. The submission due dates for these agreements were December 31, 2024 and January 31, 2025. SAM.gov notes the submission dates for three of these agreements to be December 18, 2025, and for the one agreement entered into on November 22, 2024, the submission date was noted to be January 7, 2025. During our testwork over this program, we noted IRC did not establish control procedures to submit FFATA reports for all subawards on a timely basis. We noted the following exceptions: Transactions Tested: 5 Subaward not reported: 0 Report not timely: 4 Subaward amount incorrect: 0 Subaward incorrect key elements: 0 Dollar amount of tested transactions: $302,280 Subaward not reported: $0 Report not timely: $291,135 Subaward amount incorrect: $0 Subaward incorrect key elements: $0 Cause: Following the federal system migration, the USG FFATA reporting platform within SAM.GOV no longer displayed or made readily retrievable the submission date associated with individual FFATA. Effect: Delayed reporting can lead to reduced transparency, hindering public access to information about how federal funds are being used. Questioned Costs: None. Recommendation: IRC should continue to communicate to all field office personnel responsible for FFATA submissions the importance of timely reporting and maintaining appropriate documentation to evidence timely reporting. We recommend adding another level of review from headquarters to ensure reporting is taking place once a subawardee agreement is finalized and documenting that review in writing. Additionally, we recommend that IRC take screen shots during the submission process and maintain these with the subawardee agreements. This will evidence the submission in SAM.gov, specifically evidencing the submission date. Views of Responsible Officials: While Management maintains it acted in good faith to ensure all FFATA submissions are provided timely, the new FFATA reporting platform issues made it difficult for IRC to substantiate the dates of submission. IRC did contact FSD.gov to confirm what form of evidence would be considered sufficient in the absence of visible system date stamps. FSD.gov was unable to provide specific confirmation and instead directed IRC to published guidance https://www.fsd.gov/gsafsd_sp/en/under the federal funding accountability and transparency act how acknowledging existing “implementation challenges”. This guidance shifts the focus of compliance validation from system generated timestamps to whether the recipient acted in good faith to comply with reporting obligations. Relying on this, IRC’s internal control framework did not include a secondary documentation mechanism to independently evidence submission dates in the event that system functionality limited visibility. However, IRC remains committed to full FFATA compliance and will incorporate additional steps to strengthen the compliance documentation trail.