APPLIED RESEARCH INSTITUTE, INCNon-Profit

2025-001 – Department of War – Congressional Directed Assistance – Assistance Listing No. 11.039 – Federal Award Number HQ00342520004 Material Noncompliance – L. Reporting – Federal Funding Accountability and Transparency Act (FFATA) Criteria: Appendix A. I(a)(2)(ii) to 2 CFR 170 indicates subaward information must be reported no later than one month following the month in which the subaward was issued. Condition and Context: We tested two subaward agreements required to be reported under FFATA. Our testing and the related results are summarized below. Management was aware the reporting requirements including the due date of the FFATA reporting. While attempting to complete the reporting management had questions which management was working to address. Management did not receive the necessary answers to its questions in a timely manner, in part due to the federal government shutdown, and decided to prioritize the accuracy of the reporting over timely completion. This decision resulted in untimely filing of all eight subawards management entered into during 2025. As of the date of our report, all eight filings due in 2025 have been completed. Cause and Effect: The finding was due to incomplete policies and procedures around FFATA reporting which resulted in untimely filing of FFATA reports. Recommendation: We recommend reviewing policies and procedures around FFATA reporting to ensure timely reporting. Views of Responsible Officials and Corrective Action: The Organization agrees with the recommendation and implemented corrective action in December 2025.