Finding Text
Federal Agency: Department of Health and Human Services
Federal Program: 93.137 Community Programs to Improve Minority Health Grant Program
Identification Number: 1 CPIMP211296-01-00
Requirement: Reporting
Type of Finding: Material weakness in internal control over major program; Noncompliance
Criteria: Any obligation to a subrecipient over $25,000 is required to be reported under the Federal Funding Accountability and Transparency Act (FFATA) requirements.
Condition: First tier subawards were not entered into the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) portal during the audit period. One subrecipient agreement does not include a subaward amount.
Cause: Management does not have procedures in place to ensure subrecipients meeting the reporting requirement are entered into the FSRS portal.
Effect: First tier subrecipients are not reported in the FSRS portal, causing noncompliance with the FFATA. Misinformation presented to the federal government may lead to federal inquiries of those charged with governance.
Context: There were two subrecipient agreements that met the requirements of a first tier subaward during the audit period. These subawards were not reported in the FSRS portal during the year under audit. A summarization of transactions tested, as well as questioned costs, are below.
Recommendation: Program management should make the first-tier subaward determination when funds are awarded to recipients and promptly enter qualifying subawards into the FSRS portal. We recommend that one individual is responsible for entering the subaward into the portal and another individual is responsible for checking the portal before the deadline (one month after the subaward is made). Adding this additional review of the portal would ensure that qualifying subawards are appropriately reported. Subaward agreements should include the amount of funding.
Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.