Audit 410094

Finding 2025-002 – Subrecipient Monitoring Federal Agency: Department of Treasury Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – ALN #21.027 Condition: As part of its subrecipient monitoring process, the County obtained and reviewed the subrecipient’s audit report, which identified findings related to federal program expenditures. Although the County ultimately communicated with the subrecipient regarding the findings, requested a corrective action plan, and performed and documented follow-up procedures, these actions were not completed timely. The follow-up procedures ultimately performed did not identify any additional issues or unresolved matters. Criteria: Internal controls over subrecipient monitoring should ensure that audit findings are communicated, corrective action is requested, and follow-up procedures are completed and documented within an established timeframe. The control should also provide a means to track the status of these activities through resolution. Cause: The County did not have an effective process to track the timing of subrecipient monitoring follow-up activities and ensure that communication, corrective action requests, and related documentation were completed timely. Effect: The delay in completing and documenting follow-up reduced the timeliness and transparency of the County’s monitoring process and could have delayed corrective action by the subrecipient. The follow-up procedures ultimately performed did not identify any additional issues or unresolved matters. Repeat Finding: Yes. This finding is a continuation of Finding 2024-002. The County obtained and reviewed the required subrecipient audit reports during 2025; however, it did not timely follow up on audit findings. Recommendation: The County should establish a documented tracking process for subrecipient audit findings that identifies responsible personnel, required actions, target completion dates, and current status. The County should also require timely communication with subrecipients, requests for corrective action plans, completion of follow-up procedures, and retention of supporting documentation. Periodic supervisory review should be performed to confirm that follow-up activities are completed and documented within the established timeframe. Questioned Costs: Unknown Views of Responsible Official and Planned Corrective Action: Management agrees with the finding. See separate correction action plan.