Finding Text
Significant deficiency in internal control over compliance related to reporting for the Federal Funding Accountability and Transparency Act Federal Agency: Department of Health and Human Services Program Title: Social Services Research and Demonstration Program Assistance Listing Number: 93.647 Project Number: 90XP0459-01-00 Award Period: August 31, 2022 – August 30, 2023 Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109‐282) (FFATA) that are codified in Title 2 U.S. Code of Federal Regulations, Part 170 ‐ Reporting Subaward and Executive Compensation Information. The prime awardee is required to file a FFATA sub‐award report by the end of the month following the month in which the prime recipient awards any sub‐grant in total greater than or equal to $30,000. The report must be filed in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition The Organization did not complete required FFATA reporting for covered subawards. Cause The Organization’s system of internal control is not designed appropriately due to a lack of formal written policies and procedures governing established a process by which to perform FFATA reporting. Effect The Organization did not comply with the FFATA sub-award reporting requirements that are codified in Title 2 U.S. Code of Federal Regulations for all 2 of the sub-award selections. Questioned Costs None. Recommendation We recommend management develop and implement formal written policies and procedures for allocating shared costs, provide training to staff, periodically review allocations for consistency and compliance with federal requirements, review the FFATA requirements to ensure they are implemented for all applicable sub-awards, and complete all required FFATA reporting for past covered sub-awards.