Audit 46639

Criteria or Specific Requirements: Using the guidance in 2 CFR section 200.331, non-Federal entities passing federal awards through to other entities are required to perform a determination as to whether the other entities are considered to be subrecipients or contractors. Under 2 CFR 200.332, pass-through entities are required to ensure that subawards to subrecipients include required federal award identification and detail of all compliance and other requirements for the federal award. In addition, the subrecipients to ensure that the subaward is used for authorized purposes, that compliance requirements are met, and that the subrecipient takes timely and appropriate action on any deficiencies relating to the Federal award provided. Condition: During testing over subrecipients monitoring and reporting, we noted the County did not have effective control over subrecipient monitoring and reporting. Questioned costs: None. Context: For 5 of 5 subrecipients selected, the County did not have agreements with the subrecipients that included the required federal award information and did not have a process in place to monitor these subrecipients. Prior to 2022, the County determined that certain entities receiving payment under TANF were contractors. In March of 2023, the County performed a revised analysis using the guidance in 2 CFR 200.331 with the conclusion that certain entities that were previously determined to be contractors should have been considered subrecipients. After this revised determination was made, the County did not provide revised subaward agreements or perform subrecipients monitoring procedures. Cause: The County initially improperly determined TANF subrecipients as contractors prior to 2022 and did not follow up timely after a revised determination was completed in 2023. The County did not have a process in place to properly assess if organizations met the criteria to be considered subrecipients. Effect: If the County does not provide required subaward information on a timely basis, it increases the risk that subrecipients will not be in compliance with all required federal award requirements. Repeat Finding: Not a repeat finding. Recommendation: We recommend the County determine whether an entity receiving payment under TANF is a subrecipient or a contractor prior to entering into an agreement with the entity and to include all guidance under 2 CFR 200.331 when making this determination. Views of responsible officials: There is no disagreement with the audit findings.

Criteria or specific requirements: Recipients of federal awards are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award (2 CFR 200.303). Condition: During our testing over the County?s quality control process for TANF payments to program participants, we noted one instance where errors identified in the quality control review process were not addressed on a timely basis. Questioned costs: None Contest: for 1 of 40 quality control case reviews selected, the County did not take corrective action for certain errors relating to data recorded for participant identification and pregnancy status in a timely manner. For the exception noted, the case review was performed in May 2022 but corrective action for these errors was not taken until March 2023. We noted that the errors that were not corrected timely did not impact the eligibility determination for the case. Cause: The County did not have a process to ensure that errors identified in the quality control process were corrected in a timely manner. Effect: if errors detected during the quality control review process are not updated timely, it increases the risk that the County pay TANF benefits to an ineligible recipient or incorrectly withhold TANF benefits to an eligible recipient. Repeat Finding: Not a repeat finding. Recommendation: We recommended the County implement a process to ensure that errors identified in the quality control process are addressed in a timely manner. Views of responsible officials: There is no disagreement with the audit finding.

Criteria or Specific Requirements: Using the guidance in 2 CFR section 200.331, non-Federal entities passing federal awards through to other entities are required to perform a determination as to whether the other entities are considered to be subrecipients or contractors. Under 2 CFR 200.332, pass-through entities are required to ensure that subawards to subrecipients include required federal award identification and detail of all compliance and other requirements for the federal award. In addition, the subrecipients to ensure that the subaward is used for authorized purposes, that compliance requirements are met, and that the subrecipient takes timely and appropriate action on any deficiencies relating to the Federal award provided. Condition: During testing over subrecipients monitoring and reporting, we noted the County did not have effective control over subrecipient monitoring and reporting. Questioned costs: None. Context: For 5 of 5 subrecipients selected, the County did not have agreements with the subrecipients that included the required federal award information and did not have a process in place to monitor these subrecipients. Prior to 2022, the County determined that certain entities receiving payment under TANF were contractors. In March of 2023, the County performed a revised analysis using the guidance in 2 CFR 200.331 with the conclusion that certain entities that were previously determined to be contractors should have been considered subrecipients. After this revised determination was made, the County did not provide revised subaward agreements or perform subrecipients monitoring procedures. Cause: The County initially improperly determined TANF subrecipients as contractors prior to 2022 and did not follow up timely after a revised determination was completed in 2023. The County did not have a process in place to properly assess if organizations met the criteria to be considered subrecipients. Effect: If the County does not provide required subaward information on a timely basis, it increases the risk that subrecipients will not be in compliance with all required federal award requirements. Repeat Finding: Not a repeat finding. Recommendation: We recommend the County determine whether an entity receiving payment under TANF is a subrecipient or a contractor prior to entering into an agreement with the entity and to include all guidance under 2 CFR 200.331 when making this determination. Views of responsible officials: There is no disagreement with the audit findings.

Criteria or specific requirements: Recipients of federal awards are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award (2 CFR 200.303). Condition: During our testing over the County?s quality control process for TANF payments to program participants, we noted one instance where errors identified in the quality control review process were not addressed on a timely basis. Questioned costs: None Contest: for 1 of 40 quality control case reviews selected, the County did not take corrective action for certain errors relating to data recorded for participant identification and pregnancy status in a timely manner. For the exception noted, the case review was performed in May 2022 but corrective action for these errors was not taken until March 2023. We noted that the errors that were not corrected timely did not impact the eligibility determination for the case. Cause: The County did not have a process to ensure that errors identified in the quality control process were corrected in a timely manner. Effect: if errors detected during the quality control review process are not updated timely, it increases the risk that the County pay TANF benefits to an ineligible recipient or incorrectly withhold TANF benefits to an eligible recipient. Repeat Finding: Not a repeat finding. Recommendation: We recommended the County implement a process to ensure that errors identified in the quality control process are addressed in a timely manner. Views of responsible officials: There is no disagreement with the audit finding.