Finding 1208467 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-22

AI Summary

  • Core Issue: The Department of War failed to report subawards on time due to incomplete policies and procedures regarding FFATA reporting.
  • Impacted Requirements: Subaward information must be reported within one month of issuance, as per 2 CFR 170.
  • Recommended Follow-Up: Review and update FFATA reporting policies and procedures to ensure timely compliance.

Finding Text

2025-001 – Department of War – Congressional Directed Assistance – Assistance Listing No. 11.039 – Federal Award Number HQ00342520004 Material Noncompliance – L. Reporting – Federal Funding Accountability and Transparency Act (FFATA) Criteria: Appendix A. I(a)(2)(ii) to 2 CFR 170 indicates subaward information must be reported no later than one month following the month in which the subaward was issued. Condition and Context: We tested two subaward agreements required to be reported under FFATA. Our testing and the related results are summarized below. Management was aware the reporting requirements including the due date of the FFATA reporting. While attempting to complete the reporting management had questions which management was working to address. Management did not receive the necessary answers to its questions in a timely manner, in part due to the federal government shutdown, and decided to prioritize the accuracy of the reporting over timely completion. This decision resulted in untimely filing of all eight subawards management entered into during 2025. As of the date of our report, all eight filings due in 2025 have been completed. Cause and Effect: The finding was due to incomplete policies and procedures around FFATA reporting which resulted in untimely filing of FFATA reports. Recommendation: We recommend reviewing policies and procedures around FFATA reporting to ensure timely reporting. Views of Responsible Officials and Corrective Action: The Organization agrees with the recommendation and implemented corrective action in December 2025.

Corrective Action Plan

2025-001 – Department of War – Congressional Directed Assistance – Assistance Listing No. 11.039 - Federal Award Number HQ00342520004 Material Noncompliance – L. Reporting – Federal Funding Accountability and Transparency Act (FFATA) Recommendation: The Auditors recommend reviewing policies and procedures around FFATA reporting to ensure timely reporting. Corrective Action Taken: We agree with the recommendation and have implemented the corrective action in December 2025.

Categories

Subrecipient Monitoring Reporting

Programs in Audit

ALN Program Name Expenditures
12.599 CONGRESSIONALLY DIRECTED ASSISTANCE $5.56M
11.039 REGIONAL TECHNOLOGY AND INNOVATION HUBS $2.53M
12.800 AIR FORCE DEFENSE RESEARCH SCIENCES PROGRAM $465,084
81.255 CLEAN ENERGY DEMONSTRATIONS $4,083