Finding Text
Finding: 2022-001 Reporting Finding Type: Noncompliance, Significant Deficiency Identification of the Federal Program(s): U.S. Department of Housing and Urban Development: 14.169 ? Housing Counseling Assistance Program U.S. Department of Justice: 16.726 ? Juvenile Mentoring Program U.S. Department of Labor: 17.261 ? WIOA Pilots, Demonstrations, and Research Projects Small Business Administration: 59.077 ? COVID-19 ? Community Navigator Pilot Program U.S. Department of Health and Human Services: 93.011 ? COVID-19 ? National Organizations of State and Local Officials Criteria: Federal Funding Accountability and Transparency Act Aspects of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act), as amended by Section 6202 of Pub. L. No. 110-252, that relate to subaward reporting (1) under grants and cooperative agreements were implemented in OMB in 2 CFR Part 170 and (2) under contracts, by the regulatory agencies responsible for the Federal Acquisition Regulation (FAR at 5 FR 39414 et seq., July 8, 2010). The requirements pertain to recipients (i.e., direct recipients) of grants or cooperative agreements who make first-tier subawards and contractors (i.e., prime contractors) that award first-tier subcontracts. There are limited exceptions as specified in 2 CFR Part 170 and the FAR. The guidance at 2 CFR Part 170 currently applies only to federal financial assistance awards in the form of grants and cooperative agreements (e.g., it does not apply to loans made by a federal agency to a recipient); however, the subaward reporting requirement applies to all types of first-tier subawards under a grant or cooperative agreement. Direct recipients are required to report each first-tier subaward or subaward amendment that results in an obligation of $30,000 or more in federal funds. Prime contractors are required to report each first-tier subcontract award of $30,000 or more in federal funds. Grant and cooperative agreement recipients and contractors are required to register in FSRS and report subaward data through FSRS. To do so, they will first be required to register in the System for Award Management (SAM) (if they have not done so previously for another purpose (e.g., submission of applications through Grants.gov) and actively maintain that registration. Prime contractors have previously been required to register in SAM. Information input to FSRS is available at USASpending.gov as the publicly available website for viewing this information (https://www.usaspending.gov/search). Condition: NUL has an obligation to report subaward data as required under the Federal Funding Accountability and Transparency Act (FFATA). This includes subawardee information, subawardee DUNS or SAM number, and relevant executive compensation, if applicable. Based on our selection of these subawards for testing (five for each major program), the following was noted: See Schedule of Findings and Questioned Costs for charts. Cause: Due to turnover in the Legal department, NUL did not consistently have personnel in place to ensure they submitted subaward information in FFATA reports accurately and timely. Effect: NUL did not submit subaward information in certain FFATA reports accurately or timely. Questioned Costs: None. Repeat Finding: Repeat finding of 2021-001 Recommendation: We recommend that NUL implement procedures to ensure accurate and timely reporting of all required subawards on FFATA reports prior to submission. View of Responsible Officials: See management?s corrective action plan.