Finding 1179573 (2025-007)

Federal Agency: U.S. Department of Health and Human Services Federal Program Titles: • Emerging Infections Programs • Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Assistance Listing Numbers: • 93.317 • 93.323 Award Periods: • NU50CK000649 (1/1/2024 – 12/31/2028) (93.317) • NU50CK000548 (8/1/2019 – 7/31/2024) (93.323) • NU50CK000346 (8/1/2024 – 7/31/2029) (93.323) Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Post Federal Award Requirements and Cost Principles for Federal Award requires compliance with the grantee to submit reports as required by Federal statutes, regulations, and terms and conditions of the subaward. 2025-007 (2024-004) Reporting (Significant Deficiency, Other Noncompliance) (Continued) Condition: During our testing, we noted the following: • We were unable to verify whether the Department is meeting the Federal Funding Accountability and Transparency Act (FFATA) requirements and reporting subaward activities in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Questioned Costs: None Cause: The Department does not have procedures in place to ensure FFATA reports are submitted timely and in accordance with the terms and conditions of the federal awards. 2025-007 (2024-004) Reporting (Significant Deficiency, Other Noncompliance) (Continued) Effect: The Department was not in compliance with federal award reporting requirements. Continued noncompliance could result in sanctions by the federal awarding agency, including withholding future funding. Repeat Finding: Yes Recommendation: The Department should establish policies and procedures to ensure FFATA reporting activities are performed for all federal awards. Agency Response: The Department acknowledges this finding and provides a corrective action plan to prevent future similar findings. The Department agrees that it did not have procedures in place to ensure reports are submitted timely and in accordance with the terms and conditions of the federal awards. The Department has implemented new policies and procedures to ensure reporting activities are performed for all federal awards. The Program will meet with the Federal Funding Accountability and Transparency Act (FFATA) requirements and reporting subaward activities in SAM.gov no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Grants Management Bureau (GMB) will be oversight in making sure that these requirements are being met and will be verifying the information in SAM.gov. The Department is working on remediation of this finding and anticipates completion before June 30, 2026. This action plan will comply with 2 CFR Part 200 Uniform Administrative Requirements, Post Federal Award Requirements and Cost Principles for Federal Award. Responsible Persons: Federal Grants Director, Division Finance Directors, and Grant Administrators.