Finding 497896 (2023-002)

Material Weakness
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-09-23

AI Summary

  • Core Issue: HESI failed to file the required FFATA report for a subrecipient receiving over $30,000 in federal awards on time.
  • Impacted Requirements: This non-compliance violates the Federal Funding Accountability and Transparency Act (FFATA) reporting requirements.
  • Recommended Follow-Up: Implement controls to track FFATA reporting needs and ensure timely submissions, possibly by enhancing the existing subrecipient monitoring checklist.

Finding Text

Finding 2023-002: Material Weakness over Subrecipient Reporting Information on the Federal Program: Food and Drug Administration Research, CFDA 93.103 Criteria: Federal Funding Accountability and Transparency Act (FFATA) reports are required to be filed for subrecipients receiving direct awards in excess of $30,000 by the end of the month following the month the award is given. Condition: HESI did not timely file the required FFATA report for a subrecipient receiving direct federal awards in excess of $30,000. Cause: Due to a lack of controls surrounding the monitoring of FFATA reporting for subrecipients. Effect: Failed to comply with compliance supplement requirements related to FFATA filing. Questioned Costs: There were no material questioned costs identified. Context: For 2023, the FFATA report not filed timely represents 100% of the total population of those reports. Repeat Finding: No. Recommendation: We recommend management establish a control to identify when FFATA reporting is needed and to ensure the respective reports are filed on a timely basis. This can be done as a part of their existing subrecipient monitoring checklist. Views of Responsible Officials and Planned Corrective Action: See management's response at the Corrective Action Plan on page 30.

Corrective Action Plan

Finding 2023-002: Material Weakness over Subrecipient Reporting Federal Funding Accountability and Transparency Act (FFATA) reports are required to be filed for subrecipients receiving direct awards in excess of $30,000 by the end of the month following the month the award is given. HESI did not timely file the required FFATA report for a subrecipient receiving direct federal awards in excess of $30,000. Planned Corrective Action: The FFATA report was subsequently filed in April 2024. Procedures have been put in place to ensure that the form will be filed in a timely manner and in accordance with all filing requirements. Name and Person Responsible: Beth-Ellen Berry, Chief Financial Officer Anticipated Completion Date: September 3, 2024

Categories

Subrecipient Monitoring Reporting Material Weakness

Other Findings in this Audit

  • 497895 2023-001
    Material Weakness
  • 1074337 2023-001
    Material Weakness
  • 1074338 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.103 Food and Drug Administration_research $153,660