Finding 572632 (2024-002)

Material Weakness
Requirement
M
Questioned Costs
-
Year
2024
Accepted
2025-08-05

AI Summary

  • Core Issue: Subrecipients were not informed of the federal nature of their awards, missing key federal award information in documentation.
  • Impacted Requirements: This violates 2 CFR section 200.332(a), which mandates clear communication of federal award details to subrecipients.
  • Recommended Follow-Up: Implement procedures to ensure all federal award information is included in subaward agreements and communicated at the time of the award.

Finding Text

Federal Program Name: Research and Development Cluster: Uniformed Services University Medical Research Projects Federal Agency: U.S. Department of Defense Federal Assistance Listing Number: 12.750 Criteria or Specific Requirement: Subrecipient Monitoring Condition: During testing of subrecipient monitoring, it was noted that the Organization awarded three awards to subrecipients during the year and did not inform these subrecipients of the federal nature of the award at the time of the subaward. Specifically, the required federal award information was not included in the subaward documentation. Effect: Failure to communicate the federal nature of the award may result in subrecipients not being aware of their responsibilities under federal regulations, which could lead to noncompliance with federal requirements. Questioned Costs: None Context: In accordance with 2 CFR section 200.332(a), pass-through entities are required to clearly identify to the subrecipient the federal award information at the time of the subaward. This includes the federal award identification number, the federal awarding agency, the assistance listing number (ALN), and the amount of federal funds obligated. This information was not communicated to the subrecipients Cause: The Organization did not have adequate procedures in place to ensure that all required federal award information was communicated to subrecipients. Repeat Finding: No Recommendation: We recommend that the Organization implement procedures to ensure that all required federal award information is included in subaward agreements and communicated to subrecipients at the time of the award. Views of Responsible Officials and Planned Corrective Action: The Organization agrees with the comment and will revise policies to communicate all required federal award information to subrecipients.

Corrective Action Plan

Finding Number: 2024-002 Recommendation: Inform subrecipients of the required federal award info outlined in § 200.332 Requirements for pass-through entities. Action Taken: 1. AANA has posted on its MAST website and application that: “The MAST program is funded by the United States Federal Government and is subject to all applicable federal statutes, regulations, and requirements. The receiving entity is not debarred, suspended, or otherwise excluded from using federal funds.” 2. AANA will include the following as a footnote on any MAST manuscripts and printed text: “Supported by a grant administered by The Arthroscopy Association of North America (AANA), with funding provided by the Military Advanced Surgical Treatment (MAST) Program.” 3. Request and/or ensure the following information through the contracting process with any MAST Subrecipient: a. Subrecipient's name (must match the name associated with its unique entity identifier) b. Subrecipient's unique entity identifier c. Subaward Period of Performance Start and End Date d. Subaward Budget Period Start and End Date e. Amount of Federal Funds Obligated in the subaward f. Total Amount of Federal Funds Obligated to the subrecipient by the pass-through entity, including the current financial obligation g. Total Amount of the Federal Award committed to the subrecipient by the pass-through entity h. Federal award project description, as required by the Federal Funding Accountability and Transparency Act (FFATA) i. Identification of whether the Federal award is for research and development j. Indirect cost rate for the Federal award (including if the de minimis rate is used in accordance with § 200.414) i. An approved indirect cost rate negotiated between the subrecipient and the Federal Government. If no approved rate exists, a pass-through entity must determine the appropriate rate in collaboration with the subrecipient. The indirect cost rate may be either: 1. An indirect cost rate negotiated between the pass-through entity and the subrecipient. These rates may be based on a prior negotiated rate between a different pass-through entity and the subrecipient, in which case the passthrough entity is not required to collect information justifying the rate but may elect to do so; or 2. The de minimis indirect cost rate. k. A requirement that the subrecipient permit the pass-through entity and auditors to access the subrecipient's records and financial statements for the pass-through entity to fulfill its monitoring requirements l. Verify that a subrecipient is audited as required Responsible Contact Person for Planned Corrective Action: Dennis Siena Anticipated Completion Date: September 30, 2025

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 572631 2024-001
    Material Weakness
  • 572633 2024-001
    Material Weakness
  • 572634 2024-002
    Material Weakness
  • 572635 2024-001
    Material Weakness
  • 572636 2024-002
    Material Weakness
  • 572637 2024-001
    Material Weakness
  • 572638 2024-002
    Material Weakness
  • 1149073 2024-001
    Material Weakness
  • 1149074 2024-002
    Material Weakness
  • 1149075 2024-001
    Material Weakness
  • 1149076 2024-002
    Material Weakness
  • 1149077 2024-001
    Material Weakness
  • 1149078 2024-002
    Material Weakness
  • 1149079 2024-001
    Material Weakness
  • 1149080 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
12.750 Uniformed Services University Medical Research Projects $185,864