Finding 1200765 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 395758
Organization: Distinctive Schools (IL)
Auditor: APRIO LLP

AI Summary

  • Core Issue: The Organization failed to submit required FFATA subaward reports for first tier subawards of $30,000 or more.
  • Impacted Requirements: Noncompliance with 2 CFR Part 170 and 2 CFR 200.516(a) due to late or missing reports in FSRS.gov.
  • Recommended Follow-Up: Management needs to create and enforce procedures to ensure timely and accurate reporting of all applicable subawards.

Finding Text

Finding Reference Number: 2025-002 FFATA Reporting Finding. Title and CFDA Number of Federal Program: 84.351A – Assistance for Arts Education - R&D Cluster. Type of Finding: Federal Award Finding. Finding Resolution Status: In Process. Criteria: Recipients of Federal awards are required to report first tier subawards of $30,000 or more into FSRS, including key data elements, in accordance with 2 CFR Part 170 and the reporting requirements incorporated into 2 CFR 200.516(a). Statement of Condition: The Organization did not submit the required Federal Funding Accountability and Transparency Act (FFATA) subaward report in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS.gov) for applicable first tier subawards. This reporting is required no later than the last day of the month following the month in which the subaward obligation was made, per the Transparency Act requirements referenced in 2 CFR Part 200 the Compliance Supplement. Cause: The Organization did not complete or submit the required FFATA report in FSRS.gov for the applicable subaward(s). Effect or Potential Effect: Failure to report subawards in FSRS.gov results in noncompliance with FFATA reporting requirements. As a result, the Federal awarding agency and pass through entities may lack necessary transparency regarding the entity’s subaward activity. Questioned costs - None identified. Reportable Views of Responsible Officials: See Corrective Action Plan. Identification of Repeat Findings - This is not a repeat finding. Recommendation: Management should establish and implement procedures to ensure that all first tier subawards subject to FFATA are reported timely and accurately into FSRS.gov, consistent with Federal requirements.

Corrective Action Plan

The Organization will adopt formal procedures to assess FFATA applicability for every subaward, require FFATA reporting in FSRS.gov by the end of the month following the subaward obligation, and train program and grants staff on FFATA requirements and documentation.

Categories

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Other Findings in this Audit

  • 1200764 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.351 ARTS IN EDUCATION $1.83M