Audit 406770

Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.027 Compliance Requirement: Subrecipient Monitoring Criteria: 2 CFR 200.332 establishes standards to evaluate subrecipient risk, monitor subrecipient activities, follow up on identified deficiencies, and maintain documentation of monitoring to ensure compliance with federal requirements Condition: The City of Noblesville does not have a formal policy or standardized process in place to track and perform consistent subrecipient monitoring procedures for all subrecipients receiving Coronavirus State and Local Fiscal Recovery Funds. Cause: The City has not established formal written procedures or implemented a centralized tracking mechanism to ensure all required subrecipient monitoring activities are performed and documented in accordance with federal requirements. Effect: Without a formal policy and tracking process, there is an increased risk that subrecipient monitoring procedures may not be performed consistently or timely, which could result in noncompliance with Uniform Guidance requirements and improper use of federal funds by subrecipients going undetected. Questioned costs: There were no identified questioned costs Context: We tested a sample of one subrecipient that received payments under the program totaling $249,857 of disbursements out of 4 total recipients, with total payments of $475,638 during 2025. Based on our procedures, we noted that the City has not established formal subrecipient monitoring procedures and that monitoring activities were not performed consistently across subrecipients. Our sampling methodology is not considered statistically valid. Recommendation: We recommend the City develop and implement a formal subrecipient monitoring policy and establish a centralized tracking system to ensure all required monitoring activities are performed consistently and documented for all subrecipients. The policy should align with 2 CFR 200.332 and include procedures for risk assessment, monitoring activities, and follow-up on identified issues. Views of Responsible Officials and Planned Corrective Actions: For the views of responsible officials, refer to the Corrective Action Plan