Finding 38690 (2022-001)

-
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-07-26

AI Summary

  • Core Issue: The Organization failed to submit required FFATA sub-grant reports for sub-awards over $30,000 during 2022.
  • Impacted Requirements: This oversight violates 2 CFR Part 170, which mandates timely reporting for federal sub-grants.
  • Recommended Follow-Up: Ensure timely submission of FFATA reports and establish procedures to identify reporting requirements for future federal awards.

Finding Text

Name of Federal Program: Manufacturing Extension Partnership Federal Assistance Listing Name: 11.611 Federal Award Identification Number: 70NANB21H052 Federal Award Year: 2021-2025 Federal Agency: U.S. Department of Commerce Criteria- In accordance with Title 2 U.S. Code of Federal Regulations Chapter 1, Part 170 Reporting Sub-Award and Executive Compensation Information (?2 CFR Part 170?), prime awardees of federal grants, cooperative agreements, loans, and other forms of Federal financial assistance that award any sub-grants equal to or greater than $30,000 are required to file a Federal Funding Accountability and Transparency Act (?FFATA?) sub-grant report. The FFATA sub-grant report is required to be submitted by the end of the month following the month in which the prime awardee awards a sub-grant in excess of the reporting threshold. Condition- The Organization had sub-awards in excess of $30,000 during year ended December 31, 2022, however, no FFATA sub-grant reports were submitted. Cause= The Organization was not made aware of the applicability of the FFATA reporting requirements. The Organization?s cooperative agreement does not explicitly state the FFATA reporting requirements apply to their federal award. Additionally, in previous years, the Organization?s program had not been listed in the OMB Compliance Supplement which identifies the FFATA reporting requirement. Effect- The Organization not submitting the FFATA sub-grant report in a timely manner violates 2 CFR Part 170. Questioned Costs- None noted. Identification of Repeat Finding- Not a repeat finding. Recommendation- We recommend the Organization submits the reports necessary to comply with the FFATA reporting requirements. Additionally, we recommend the implementation of procedures and controls to identify the applicability of the FFATA reporting requirements to future federal awards and to complete the necessary filings within a timely manner. Management?s Views and Corrective Action Plan- Management is in agreement with the audit finding and has taken necessary steps to file the previous reports that were not submitted timely. Additionally, they have begun developing procedures to identify the applicability of FFATA reporting requirements to their federal awards and to ensure that the related reports are submitted in a timely manner.

Corrective Action Plan

Corrective Action Plan Year Ended December 31 , 2022 Finding: 2022-001 Corrective Action Plan: State Science and Technology Institute did not file sub-grant reports required under the Federal Funding Accountability and Transparency Act ("FFATA") for subgrants that satisfy the applicable requirements. State Science and Technology Institute has developed and established a Corrective Action Plan to submit past due FFATA sub-grant reports and implement procedures to review future federal awards for the applicability of FFATA reporting requirements to ensure that this oversight does not recur. Daniel Berglund President and Chief Executive Officer

Categories

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
11.611 Manufacturing Extension Partnership $790,707
11.307 Economic Adjustment Assistance $61,339