Finding 499829 (2023-002)

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Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 322684
Organization: Academyhealth (DC)

AI Summary

  • Core Issue: Reports for subawards over $30,000 were not submitted to the FSRS by the deadline.
  • Impacted Requirements: This noncompliance violates the Federal Funding Accountability and Transparency Act of 2006.
  • Recommended Follow-Up: Improve internal controls and create a tracking system to ensure timely reporting for all Federal awards.

Finding Text

Criteria or Specific Requirements: As required by the Federal Funding Accountability and Transparency Act of 2006 (Pub. L. 109–282), as amended by section 6202 of Public Law 110–252, recipients must report information for each subaward of $30,000 or more in Federal funds and executive total compensation, as outlined in Appendix A to 2 CFR Part 170. The information is to be submitted to the FFATA Subaward Reporting System (FSRS) by the end of the month following the month in which the subaward was awarded. Condition: During the review of the reporting compliance requirement related to major programs, it was determined that the information was not submitted to FSRS within the required deadline. Effect: Failure to submit the FSRS by the submission deadline results in noncompliance with the Federal Funding Accountability and Transparency Act of 2006 as outlined in Appendix A to 2 CFR Part 170. Perspective: FSRS reporting for two of two subawards issued was not submitted by the due date. All reporting was tested. Cause: Internal controls over financial reporting were not operating effectively to ensure filing to the FSRS in a timely manner. Questioned Costs: Questioned costs were not identified. Repeat Finding: Not applicable. Recommendation: AcademyHealth should review its internal controls surrounding required reporting for each Federal award and develop an effective reporting tracking system to allow AcademyHealth to monitor and ensure reports are prepared and submitted within the deadline.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: AcademyHealth received its first ever U level grant from the Health Resources and Services Administration and was unaware of the FFATA Subaward Reporting System (FSRS) requirement to file information about the grant by the end of the month following the month in which the subaward was awarded. Now that AcademyHealth is aware of the FFATA requirements, the Chief Financial Officer and Director of Grants and Contracts will seek to understand and demonstrate compliance with its submissions’ requirements and deadlines. AcademyHealth’s written processes and procedures will include deadlines to ascertain compliance, and the finance and OGC professionals will attend HRSA compliance seminars and seek resources to better understand the requirements.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.110 Maternal and Child Health Federal Consolidated Programs $730,424
93.268 Immunization Cooperative Agreements $491,117
93.928 Special Projects of National Significance $353,952
93.226 Research on Healthcare Costs, Quality and Outcomes $120,440
93.279 Drug Abuse and Addiction Research Programs $64,906
93.307 Minority Health and Health Disparities Research $16,788