Finding 568229 (2024-001)

[see Table in Schedule of Finding and Question Costs-Finding 2024-001] Criteria – 2 CFR Part 170 and FAR 52.204-10(a) includes guidance on reporting federal awards in accordance with Federal Funding Accountability and Transparency Act (FFATA). FFATA requires non-federal entities to report each first-tier subaward action that obligates $30,000 or more in most federal funds to the FFATA Subaward Reporting System (FSRS). This subaward reporting is to occur no later than the end of the month following the month in which the obligation was made. Condition – We performed tests to verify if subawards were reported, were reported timely, were reported at the correct amount, and whether all key data elements were reported. We tested a sample of subawards that were required to be reported to the FSRS. In this testing, we identified the following: [see Table in Schedule of Finding and Question Costs-Finding 2024-001] Cause – Management did not initially report the subaward action due to a flaw in the FFATA detail report that informs FFATA reporting. This manual input error resulted in transactions executed on the 30th and 31st of certain months to be excluded from the report of actions to the FSRS. The subaward action (January 31, 2024) was identified by management when a subsequent reportable action occurred in August and was then reported on August 14, 2024. Moreover, a sufficiently precise process to detect errors in the completeness of subaward actions reported to the FSRS in a timely manner has not been implemented. Effect – One of the project’s subaward actions was not reported to the FSRS until the identification of the issue in August 2024 at which time the subaward action was reported to the FSRS. Questioned Costs – $0 Context – For the year ended September 30, 2024, the major program had 17 FFATA reportable subaward actions totaling $2,631,081. Identification of a Repeat Finding – No. Recommendation – Management should refine the identification and review of eligible FFATA subaward actions to ensure the complete, accurate, and timely reporting of actions to the FSRS. View of Responsible Officials – Management agrees with this finding and has prepared a corrective action plan.