Finding 390521 (2023-002)

Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (“FFATA”), recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (“FSRS”) no later than the last day of the month following the month in which the subaward was made. Condition Mending Hearts did not timely report the $200,000 subaward granted to Meharry Medical College during the year ending June 30, 2023. Cause Mending Hearts was not aware of the FFATA reporting requirement. Effect Mending Hearts did not provide timely reporting of the $200,000 subaward granted to Meharry Medical College. Upon becoming aware of the filing requirements, Mending Hearts completed the required filing. Questioned Costs None. Context The year ended June 30, 2023 represents the first year in which Mending Hearts was subject to the FFATA reporting requirement, and the PPW grant is the only grant received during the year that included a pass-through of funding to a subrecipient. Testing, therefore, included the entire population of grants subject to the reporting requirement. Auditor’s Recommendations Mending Hearts should gain an understanding of when FFATA reporting is required, carefully review awards to identify grants subject to the reporting requirement, identify key data elements required for complete and accurate reporting, and ensure that reporting is completed no later than the last day of the month following the month in which a subaward is made. Views of Responsible Officials Management agrees with the auditor’s recommendation. On March 22, 2024, Mending Hearts registered with the FSRS and filed the required FFATA report associated with PPW subaward granted to Meharry Medical College.