2024-003 – Subrecipient Monitoring – Internal Control and Compliance over Subrecipient Monitoring (Significant Deficiency)
Condition:
During the review of subrecipient monitoring records, several areas were noted for improvement:
• For two (2) out of three (3) subrecipients, the official agreem...
2024-003 – Subrecipient Monitoring – Internal Control and Compliance over Subrecipient Monitoring (Significant Deficiency)
Condition:
During the review of subrecipient monitoring records, several areas were noted for improvement:
• For two (2) out of three (3) subrecipients, the official agreement was not formally documented. One subrecipient agreement was executed via internal resolution and email approval; another subrecipient’s agreement lacked sufficient identification and award details, omitting key funding terminology.
• The City’s Subrecipient Monitoring Policy, which became effective on April 17, 2024, does not cover the period before the policy took effect. For all three (3) subrecipients, the City is unable to provide any documentation of the review of Financial and Performance Reports.
• The required Pre-Award Risk Assessments have not been provided for at least one subrecipient because the City’s Subrecipient Monitoring Policy, which became effective on April 17, 2024, does not cover the period before the policy took effect.
Management concurs.
Corrective Actions:
Staff will prepare new forms for subrecipient monitoring and communicating the requirements to all departments to ensure that subrecipient monitoring will follow the compliance requirements.
Name of Responsible Person:
Rose Tam, Director of Finance
Albert Trinh, Accounting Manager