Finding Text
2025-007. FINDING - Noncompliance with Federal Funding Accountability and Transparency Act Reporting Requirement Federal Agency: Department of Education Assistance Listing Numbers: 84.031 Program Names: Higher Education Institutional Aid, ARCOS - Advancing Research and Career Opportunities in STEM Award Numbers: P031C210111 – 2021 Questioned Costs: None Northeastern Illinois University (University) did not report a first-tier subaward of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) for the Higher Education Institutional Aid grants. CONDITIONS FOUND & CRITERIA: The Higher Education Institutional Aid grants had one first-tier subaward for $217,541 that was not reported to the FSRS. This was the only subaward granted in the Higher Education Institutional Aid program. Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) that are codified in 2 CFR Part 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 FSRS. CAUSE: University officials stated the University did not have a formalized process for FFATA subaward reporting and had not clearly assigned responsibility to a specific office, resulting in the subaward not being reported. EFFECT: FFATA reporting is critical for management of federal funds when first-tier subawards are made. Without controls in place, the University in not in compliance with federal regulations. (Finding Code No. 2025-007) RECOMMENDATION: We recommend the University implements processes and controls to ensure that FFATA reporting requirements are executed when required. UNIVERSITY RESPONSE: The University agrees with the recommendation and acknowledges that the first-tier subaward under the Higher Education Institutional Aid grant was not reported to the FSRS. This occurred because the University did not have an established process for FFATA reporting and had not clearly designated which office was responsible. The University will explore procedures to address this issue.