Finding Text
U.S. Department of Health and Human Services Federal Assistance Listing #93.912 Rural Health Network Development Program Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – The Federal Funding Accountability and Transparency Act (FFATA) explains that the grant award term is issued in accordance with 2 CFR Part 170 Reporting Subaward and Executive Compensation Information. This is designed to increase transparency and improve the public’s access to Federal government information. FFATA requires grant recipients to report first-tier subawards made under Federal grants that are funded at $30,000 or more that meet the reporting conditions as set forth in this grant award term, and such reports must be submitted no later than the last day of the month following the month in which the subaward obligation was made. Condition –. The Health Center did not report the first-tier subawards funded at $30,000 or more in accordance with FFATA. SubawardMissingTransactionsSubawardReportAmountKeyTestedNot ReportedNot TimelyIncorrectElementsQuantity11N/AN/AN/ASubawardMissingTransactionsSubawardReportAmountKeyTestedNot ReportedNot TimelyIncorrectElementsDollar Value138,859$ 138,859$ N/AN/AN/A N/A – As none of the reports were submitted, these categories were not applicable and/or we were unable to test them. Cause – The Health Center did not have adequate internal controls to ensure that the FFATA reporting requirements were completed in accordance with the grant agreement, and within the timeframe required. Effect – $138,859 of subawards that should have been reported in accordance with FFATA was not completed timely. Questioned Costs – None reported. Context/Sampling – No sampling was done as the FFATA reporting was not performed. The full population of first-tier subawards is shown above. Report Finding from Prior Year – No Recommendation – We recommend that management strengthen its internal controls over FFATA reporting to ensure all reportable first-tier subawards are identified, reviewed, and reported in SAM.gov accurately and within the reporting timeframe. Controls should include procedures to monitor subaward activity, determine FFATA applicability, and verify timely submission of required information. Views of Responsible Officials – Management agrees with the finding.