Finding 515705 (2003-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-12-18
Audit: 333569
Organization: Biostl (MO)
Auditor: Rubinbrown LLP

AI Summary

  • Core Issue: FFATA reports for subawards over $30,000 were not submitted on time or properly reviewed.
  • Impacted Requirements: Compliance with 2 CFR Part 170 and FFATA reporting standards was not met, leading to noncompliance.
  • Recommended Follow-Up: Implement timely compilation and submission of FFATA reports with proper review; utilize the new compliance reminder system for proactive notifications.

Finding Text

Finding 2023-001 Significant Deficiency: Reporting - Compliance and Control Finding ALN 11.307 – Economic Development Cluster Federal Agency: U.S. Department of Commerce Pass-Through Entity: N/A Criteria Or Specific Requirement: 2 CFR Part 170 requires direct recipients of grants to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the agreement was made. Additionally, proper controls must be in place surrounding review and approval of the report prior to submission to FSRS. Condition: Audit procedures revealed that the FFATA reports were not properly or timely submitted. Cause: Management was not aware FFATA reports were an applicable requirement of the federal program. Additionally, controls over compliance were not designed effectively to ensure compliance with such grant requirements. Effect: Instances of noncompliance were not detected by management. Context: Reports for subrecipients who were awarded over $30,000 in federal funding were not compiled, reviewed or submitted by last day of the month following the month in which the agreement was made. Questioned Costs: None. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management compile and submit FFATA report timely for all subrecipient agreements for greater than $30,000 in federal funding with proper review and approval prior to submission. Views Of Responsible Officials: BioSTL has implemented an Airtable-based compliance reminder system to automate notifications related to FFATA form submissions. Automated reminders will be sent to both pass-through partners and relevant program staff, reminding them to complete the annual FFATA form submission. Notifications will be issued on September 1st as a 30-day advance notice and again on September 15th, with a final submission deadline to BioSTL set for September 30th of each year. These reminders ensure proactive follow-up and help maintain annual compliance.

Corrective Action Plan

Personnel Responsible For Corrective Action: Mike Higgins, Vice President of Development, Taylor McCabe, Director of Grants Management, and Finance Lead, Tia Newcom Anticipated Completion Date: Expected completion by December 31, 2024Corrective Action Plan: The audit identified that FFATA (Federal Funding Accountability and Transparency Act) subaward reports were not submitted properly or on time for first-tier subawards of $30,000 or more. The deficiency was attributed to a lack of awareness of this requirement and the absence of specific internal controls to ensure timely reporting to the Federal Subaward Reporting System (FSRS). To address this finding and establish compliance with 2 CFR Part 170, BioSTL has implemented additional measures and expanded policies and procedures to ensure timely reporting to the FSRS. To ensure the highest compliance, BioSTL has incorporated the standard federal FFATA form as an exhibit within the subawardee contracts, ensuring timely collection of necessary data. This incorporation not only enables the direct gathering of general information within the contract but also includes the requirement for subawardees to complete and sign the standard FFATA form. This approach is paired with additional training and education for both BioSTL’s Grant Management personnel, Program Directors, and the leadership team within subawardee organizations, ensuring that all parties are fully aware of the initial and any ongoing reporting requirements. Through the formalized contractual process, BioSTL has implemented enhanced internal controls by requiring supervisory review and approval at multiple levels. Submitted FFATA documentation will undergo review by the Program Director managing the grant, the Director of Grants Management, and the Vice President of Development, ensuring thorough oversight and compliance at each step. To support this process, BioSTL has implemented an Airtable-based compliance reminder system to automate notifications related to FFATA form submissions. Automated reminders will be sent to both pass-through partners and relevant program staff, reminding them to complete the annual FFATA form submission. Notifications will be issued on September 1st as a 30-day advance notice and again on September 15th, with a final submission deadline to BioSTL set for September 30th of each year. These reminders ensure proactive follow-up and help maintain annual compliance. BioSTL will also ensure that both Program Directors and the Grants Department thoroughly review all submitted FFATA documents, reinforcing accuracy and adherence to reporting timelines.

Categories

Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 515706 2003-001
    Significant Deficiency
  • 1092147 2003-001
    Significant Deficiency
  • 1092148 2003-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance $1.07M
11.020 Economic Development Administration - Center for Defensive Medicine $528,092
21.027 Coronavirus State and Local Fiscal Recovery Funds $272,255
11.024 Build to Scale $120,380
17.285 Registered Apprenticeship $118,754
47.084 Nsf Technology, Innovation, and Partnerships $68,102