Audit 396694

Criteria: The Uniform Guidance requires grantees to design and implement formalized internal control policies and procedures which address the compliance requirements associated with all federal programs administered by the grantee. Condition and context: The County has implemented a process for subrecipient monitoring through the third-party consultant which had been engaged in the overall assistance with administration of the program. Pursuant to the agreement with the consultant, the County agrees to assume all management responsibilities; oversee services; evaluate the adequacy and results of the services; and accept responsibility for the results of the services. As noted in the prior year audit, we recommended the County evaluate and enhance overall documentation as to the County’s specific administration and monitoring associated with the program. However, management has not formally documented how these responsibilities are met. Based upon our audit, we noted quarterly monitoring is being performed and reports submitted to the County. Based upon the progress of the program, it is expected only ongoing reporting requirements and monitoring of the subrecipients remain. Cause: Due to the nature of the award and complexities involved, the County (with other counties) were required to engage third parties to assist with the administration of the program. Effect or potential effect: Noncompliance could occur. Questioned costs: None. Auditor’s recommendation: We continue to recommend the County formally document its overall responsibilities (and documentation thereof) as to management responsibilities. This should include, but not be limited to: responsibilities, duties, extent and adequacy of monitoring, timeliness, evaluation and acceptance of results.