The University concurs that annual subrecipient monitoring is required under Uniform Guidance and the OMB Compliance Supplement. Subrecipient monitoring activities are operationally performed within Research and Sponsored Programs (RSP). The lack of documented monitoring during the period under audi...
The University concurs that annual subrecipient monitoring is required under Uniform Guidance and the OMB Compliance Supplement. Subrecipient monitoring activities are operationally performed within Research and Sponsored Programs (RSP). The lack of documented monitoring during the period under audit is attributable to changes in staffing and workflows within RSP, which resulted in a lapse in the consistent execution and documentation of established monitoring procedures. Upon identification of this issue, the Office of the Controller (OoC), in its oversight role for financial reporting and compliance, coordinated with RSP and initiated corrective actions to ensure the subrecipient monitoring requirement will be consistently met going forward. The OoC is working with RSP to reestablish and formalize monitoring procedures and to ensure appropriate staffing resources and review processes are in place. As part of the corrective action plan, the University will complete monitoring in FY2026 for subrecipients with audited financial statements for Fiscal Year 2025 and Calendar Year 2025, where practicable. In addition, as a retrospective measure, the University will review available subrecipient audit reports for Fiscal Year 2024 to confirm whether monitoring requirements were met and to document the results of that review. Further, the OoC and RSP will collaboratively define and document roles and responsibilities for obtaining, reviewing, and retaining subrecipient audit reports on an annual basis. These actions are focused on strengthening annual audit verification procedures for subrecipients, ensure ongoing compliance with Uniform Guidance requirements, and prevent recurrence of the condition.