FINDING 2024-002
Finding Subject: PPHF Geriatric Education Centers - Subrecipient Monitoring
Summary of Finding:
Audit Finding 2024-002 states that the University of Southern Indiana did not establish a
system of internal controls to ensure that subrecipient audit reports are received and
reviewed, ...
FINDING 2024-002
Finding Subject: PPHF Geriatric Education Centers - Subrecipient Monitoring
Summary of Finding:
Audit Finding 2024-002 states that the University of Southern Indiana did not establish a
system of internal controls to ensure that subrecipient audit reports are received and
reviewed, when required, to ensure that subrecipients are properly monitored in accordance
with Federal regulations.
Contact Person Responsible for Corrective Action: Jina Platts, Assistant Vice President for
Finance and Administration and Assistant Treasurer
Contact Phone Number and Email Address: 812-465-7090; jlplatts@usi.edu
Views of Responsible Officials:
We concur with the finding that the University should have ensured that subrecipient audit
reports were received and reviewed, when required, to ensure that subrecipients are properly
monitored in accordance with Federal regulations.
The University had other controls in place related to subrecipient monitoring including the
review of financial reports and requests for reimbursement for subrecipient expenses. One
purpose of collecting and reviewing subrecipient audit reports is to determine the level of
monitoring required as high, medium, or low. Although the University treats all subrecipients
as high risk, we are unable to issue a formal management decision to subrecipients within six
months of acceptance of the audit report by the Federal Audit Clearinghouse without
assurance that audit reports are received and reviewed in a timely manner.
Description of Corrective Action Plan:
The University will update subrecipient monitoring procedures as follows:
1. Upon issuance of a subaward, the Business Office will verify if a subrecipient is subject to
single audit according to OMB Uniform Guidance. If so, the subrecipient must provide a
complete copy of their most recent independent audit used to meet their OMB Uniform
Guidance requirement or a link to their record on the Federal Audit Clearinghouse.
2. The Business Office will review the report to verify that there are no findings that may
impact the proposed subaward. In the event there are such findings, the Business Office
will notify the Office of Sponsored Projects & Research. Together the two offices will
determine an appropriate plan of action and issue a Management Decision Letter as
required by Uniform Guidance.
3. The Business Office will identify subrecipients receiving payments quarterly and verify
that their most recent audit reports have been received and reviewed. Any audit reports
completed after issuance of a subaward will be reviewed as described in #2 above.
Anticipated Completion Date:
Planned corrective actions to be implemented in January 2025.