Federal Program: Assistance Listing #14.228, Community Development Block Grant, U.S. Department of Housing and Urban Development, Passed through the Pennsylvania Department of Community and Economic Development, Pass-Through Entity Identifying Numbers: C000066177, C000067301, C000070907, C000073805, C000076178, C000075471 and C000062142 Assistance Listing #21.023, Emergency Rental Assistance Program, U.S. Department of Treasury, Passed through the Pennsylvania Department of Human Services, Pass-Through Entity Identifying Number: N/A Prior Year Finding Number 2021-004 Criteria: The requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), §200.331 Requirements for Pass-through Entities, requires entities who pass federal funding through to subrecipients evaluate each subrecipient's risk of noncompliance. As detailed in 2 CFR sections 200.331(d) through (f), the Uniform Guidance requires pass-through entities to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals. This includes issuing a management decision for audit findings pertaining to the Federal award provided to the subrecipient, as detailed in 2 CFR section 200.521. Condition: As part of our follow-up on previous audit findings, it was noted that the County is not performing monitoring activities over its subrecipient in compliance with the Uniform Guidance. Additionally, it was noted that the County did not issue a management decision for an audit finding pertaining to the Federal award provided to the subrecipient in a prior year. Questioned Costs: N/A Cause: The County does not have in place sufficient monitoring activities for its subrecipient, representing a significant deficiency in internal control over compliance. Effect: The County is not in compliance with certain requirements of the Uniform Guidance. Context: Title IV-E funding is passed through to the Lycoming-Clinton Mental Health and Intellectual Disabilities Joinder Board. The governing body of the Joinder consists of the Board of Commissioners of Lycoming and Clinton Counties, which allow each County 50% control. While it has been determined that the County has risk assessment and subrecipient monitoring policies and procedures in place for its pass-through entities related to other federal programs, management at the County has taken the position that the Title IV-E program is being monitored because of the unique nature of the funding being passed through to the Joinder Board. Recommendation: We recommend that County management perform monitoring activities for the Title IV-E program similar to the policies and procedures it has in place for its other pass-through activities. Views of Responsible Officials and Planned Corrective Actions: Management understands and is working to provide better oversight and monitoring of entities that receive pass-through grant dollars. See corrective action plan.
SOME FEDERAL AWARDS MAY CONTAIN COST LIMITATIONS ON RECOVERY OF INDIRECT COSTS THAT DIFFER FROM THE FEDERALLY NEGOTIATED INDIRECT COST RATES. IN THESE CASES, THE INDIRECT COST RATE WILL BE SPECIFIED IN THE AWARD, AD DESCRIBED IN 2 CFR SECTIONS 200.210(A)(15) AND 200.331(A)(1)(XIII). NONPROFIT ORGANIZATIONS MUST CONFORM TO COST PRINCIPLES IN 2 CFR PART 200, SUBPART E, APPENDIX IV, AND CAS (IF APPLICABLE), AND IN ACCORDANCE WITH ANY NEGOTIATED RATE AGREEMENTS AND SPECIFIC AWARD CONDITIONS/LIMITATIONS. ADDITIONALLY, RATES USED MUST BE IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE AWARD AND THE AMOUNTS CLAIMED MUST BE APPLIED TO THE APPROPRIATE BASE. IDAHO IMMUNIZATION COALITION, INC. WAS UNABLE TO PROVIDE DOCUMENTATION OF AN APPROPRIATE BASE OF EXPENDITURES FOR THE AWARD APPROVED RATE WAS APPLIED TO.
Finding 2022-001 – Subrecipient Monitoring Criteria: In accordance with 2 CFR §200.331(d), pass-through entities are required to monitor the activities of subrecipients as necessary to ensure that subawards are used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. Additionally, effective subrecipient monitoring should include review of financial and compliance reporting, follow-up on deficiencies, and ensuring that subrecipients properly meet Federal and other compliance requirements. Condition: During our testing of subrecipient monitoring controls, we noted that the Organization did not adequately monitor a subrecipient that was awarded Federal funds. Specifically, the subrecipient failed to collect and remit required payroll taxes and did not file quarterly IRS Form 941 payroll tax returns. The Organization did not identify these compliance issues in the course of its monitoring procedures. Cause: The Organization has not established sufficient subrecipient monitoring procedures to verify that subrecipients are fulfilling all required financial, tax, and compliance obligations. Monitoring activities typically involved reviewing invoices, time sheets, program reports, but did not include reviewing for compliance with Federal payroll and tax reporting requirements. Furthermore, there was not a clear understanding between the grantor (City of Chicago), the Community Based Organizations and the Chicago Parks Foundation regarding the necessity to specially monitor the process of payroll tax return preparation. Effect: Failure to adequately monitor subrecipients increases the risk of noncompliance with Federal requirements and could result in questioned costs, repayment of Federal funds, penalties, or reputational risk to the Organization as the pass-through entity. The absence of proper oversight also exposes Federal awards to potential misuse or mismanagement by the Community Based Organization, which where the subrecipients. Questioned Costs: At the time of our audit, the amount of questioned costs, if any, has not been determined. Recommendation: We recommend that the Organization strengthen its subrecipient monitoring procedures by: • Implementing monitoring activities that include verification of payroll tax filings (e.g., IRS Form 941) and remittances for subrecipients. • Establishing policies requiring periodic certification or submission of compliance documentation from subrecipients. • Providing training to staff responsible for subrecipient monitoring to ensure all aspects of Federal compliance are addressed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. The Organization will implement enhanced monitoring procedures, including requiring subrecipients to provide evidence of payroll tax compliance, and will expand its monitoring checklist to ensure IRS filing obligations are met.
Finding No.: 2022-023 Federal Agency: U.S. Department of The Treasury AL Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award No.: COVID-19 Section 9901 of the American Rescue Plan Act of 2021 Area: Subrecipient Monitoring Questioned Costs: $0 Criteria: In accordance with applicable subrecipient requirements, a pass-through entity must: 1. Clearly identify to the subrecipient the award as a subaward by providing the ALN (Assistance Listings Number) and name. 2. Include the total amount provided to subrecipients from each Federal program. 3. Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals. This includes the verification that subrecipients expected to be audited as required by 2 CFR 200, subpart F, met the audit requirements. Condition: For the year ended September 30, 2022, GovGuam reported $195.6 million in total program expenditures in the Schedule of Federal Awards (SEFA). A total of $104M represents amounts passed through to GovGuam line agencies and component units, . Of this amount, approximately $48.9 million represents payments for various programs administered by Guam Economic Development Authority (GEDA). Only $55.1 million was identified as amounts passed through to GovGuam line agencies and component units in the final SEFA, which did not include the amounts administered by GEDA. According to Executive Order No. 2021-22, dated September 7, 2021, “GEDA is appointed to serve as the Program processor for Guam, subject to continued monitoring and oversight by the Office of the Governor. The Administrator of GEDA shall serve as the official responsible for overseeing GEDA’s fulfillment of the Program, which includes the following items:…[(]i[)].. Implementing the Program, inclusive of drafting the application, standard operating procedures (SOP), and other relevant documentation. [(]ii.[)] Receiving and reviewing applications and submitting payment requests to the Department of Administration for disbursement to eligible small businesses.” Government of Guam Schedule of Findings and Questioned Costs, continued 77 Finding No.: 2022-023, continued Federal Agency: U.S. Department of The Treasury AL Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award No.: COVID-19 Section 9901 of the American Rescue Plan Act of 2021 Area: Subrecipient Monitoring Questioned Costs: $0 Condition, continued: Similar language is documented in other executive orders, describing GEDA as the administrator of various programs funded by ALN 21.027 and describing GEDA’s responsibility to make eligibility determinations. Therefore, GEDA meets the definition of a subrecipient, and amounts administered by GEDA should be reported in the SEFA as amounts passed through to subrecipients. Cause: GovGuam did not properly identify amounts passed through to subrecipients and did not enforce compliance with applicable subrecipient monitoring requirements. The Department of Administration believes that GEDA is not a subrecipient. Effect: GovGuam is in noncompliance with applicable subrecipient monitoring requirements. No questioned cost is reported because GEDA is undergoing a Single Audit for FY 2022. Identification as a Repeat Finding: Finding 2021-021 Recommendation: GovGuam should enforce compliance with applicable subrecipient monitoring requirements. Responsible personnel should monitor subrecipients for compliance with Single Audit Act requirements. Also, GovGuam should consider seeking guidance and confirmation from the Grantor Agency regarding the classification of GEDA as either a subrecipient or a contractor. Government of Guam Schedule of Findings and Questioned Costs, continued 78 Finding No.: 2022-023, continued Federal Agency: U.S. Department of The Treasury AL Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award No.: COVID-19 Section 9901 of the American Rescue Plan Act of 2021 Area: Subrecipient Monitoring Questioned Costs: $0 Views of Responsible Officials: As for Fiscal Year 2022, payments to beneficiaries under the GEDA program were made directly by DOA. GEDA was not in receipt of any funds and by that plain language cannot be considered a subrecipient. DOA determined in accordance with 2CFR 200.331 that GEDA was not a Subrecipient: Auditors may, but have not to date, requested access to GEDA and DOA records for verification eligibility. CFR§200.331 reads: “(c) Use of judgment in making a determination. In determining whether an agreement between a pass-through entity and another non-federal entity cast the latter as a Subrecipient or a contractor, the substance of the relations is more important than the form of the agreement. All the characteristics listed above may not be present in all cases, and the pass-through entity must use judgement in classifying each agreement as a subaward or a procurement contract.” Auditor Response: DOA’s determination differs from our judgement in classifying the agreement with GEDA. CFR§200.331 also reads: “ (a) Subrecipients. A subaward is for the purpose of carrying out a portion of a Federal award and creates a Federal assistance relationship with the subrecipient…. Characteristics which support the classification of the non-Federal entity as a subrecipient include when the non-Federal entity: (1) Determines who is eligible to receive what Federal assistance;… .” The substance of the relations is for GEDA to carry out a key portion of the Federal award by determining who is eligible to receive Federal assistance, as well as how much each beneficiary should receive, which is more important than the form of the agreement for DOA to act as a financial institution in writing the check. Therefore, GEDA meets the definition of a subrecipient, which is consistent with the fact that GovGuam did not subject the selection of GEDA to a procurement process. Examination by auditors of GEDA’s records as to beneficiary eligibility is not required because the compliance requirement of eligibility is not subject to audit per the OMB Compliance Supplement. Moreover, such eligibility tests would not address this finding relative to subrecipient monitoring. There is no evidence that DOA monitored GEDA’s eligibility determinations for FY 2022.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: ACL Centers for Independent Living Assistance Listing Number: 93.432 Federal Award Identification Number and Year: 2004WAILC3 - 2021 2006WAILC3 - 2021 2104WAILCL - 2022 2106WAILCL - 2022 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2004WAILC3 - 4/1/2020-9/30/22 2006WAILC3 - 4/1/20-9/30/22 2104WAILCL - 9/30/21-9/29/23 2106WAILCL - 9/30/21-9/29/23 Type of Finding: Subrecipient Monitoring/Procurement • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Per 2 CFR Part 200.331, a pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a subcontractor. If a subrecipient has been identified, per 2 CFR Part 200, Subpart F, pass through entities must notify subrecipients that they are receiving Federal funds as a subrecipient and must therefore comply with federal statutes, regulations, and the terms and conditions of the award. Additionally, pass through entities must keep documentation of monitoring the subaward. The pass through entity must have a control process in place to ensure it is in compliance with federal requirements related to subrecipient monitoring. If a subcontractor has been identified (and payment is above the micro-purchase threshold), per 2 CFR Part 200, Subpart D, the entity must have and use documented procurement procedures such as drafting a procurement policy, obtaining qualified bids, performing cost analyses and justifying reason for final selection. Condition: While there existed sophisticated procedures for reviewing, approving and monitoring applicants, they did not meet all of the Federal requirements for either that of subrecipients or subcontractors. Questioned costs: $62,857 In known questioned costs. Context: Upon receipt of the Federal ACL CARES ACT grants, the instructions were to use and disseminate the funds within the community for the purposes of supporting individuals with disabilities who were impacted by COVID and creating professional relationships in further support of individuals with disabilities. DEC was not aware of the Federal Uniform Guidance guidelines requiring DEC to make the determination of whether the vendors meet the characteristics of a subrecipient or a subcontractor and therefore did not follow the required procedures. This is an isolated instance due to the specific nature of the CARES ACT funds as DEC is not able to engage in these activities with other Federal grants. Cause: DEC did not designate these vendors as either subrecipients or subcontractors and therefore did not follow the Federal Uniform Guidance guidelines. Effect: Pass through entities, subcontractors and/or subrecipients could be out of compliance and misusing Federal funds. Repeat Finding: No Recommendation: CLA recommends DEC review the Uniform Guidance in relation to subrecipients and subcontractors, and for each vendor under contract, make a clear determination of which type of contract they fall under. Contracts should be drafted in conformity with either subrecipients or subcontractors (as directed by the Uniform Guidance). Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: ACL Centers for Independent Living Assistance Listing Number: 93.432 Federal Award Identification Number and Year: 2004WAILC3 - 2021 2006WAILC3 - 2021 2104WAILCL - 2022 2106WAILCL - 2022 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2004WAILC3 - 4/1/2020-9/30/22 2006WAILC3 - 4/1/20-9/30/22 2104WAILCL - 9/30/21-9/29/23 2106WAILCL - 9/30/21-9/29/23 Type of Finding: Subrecipient Monitoring/Procurement • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Per 2 CFR Part 200.331, a pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a subcontractor. If a subrecipient has been identified, per 2 CFR Part 200, Subpart F, pass through entities must notify subrecipients that they are receiving Federal funds as a subrecipient and must therefore comply with federal statutes, regulations, and the terms and conditions of the award. Additionally, pass through entities must keep documentation of monitoring the subaward. The pass through entity must have a control process in place to ensure it is in compliance with federal requirements related to subrecipient monitoring. If a subcontractor has been identified (and payment is above the micro-purchase threshold), per 2 CFR Part 200, Subpart D, the entity must have and use documented procurement procedures such as drafting a procurement policy, obtaining qualified bids, performing cost analyses and justifying reason for final selection. Condition: While there existed sophisticated procedures for reviewing, approving and monitoring applicants, they did not meet all of the Federal requirements for either that of subrecipients or subcontractors. Questioned costs: $62,857 In known questioned costs. Context: Upon receipt of the Federal ACL CARES ACT grants, the instructions were to use and disseminate the funds within the community for the purposes of supporting individuals with disabilities who were impacted by COVID and creating professional relationships in further support of individuals with disabilities. DEC was not aware of the Federal Uniform Guidance guidelines requiring DEC to make the determination of whether the vendors meet the characteristics of a subrecipient or a subcontractor and therefore did not follow the required procedures. This is an isolated instance due to the specific nature of the CARES ACT funds as DEC is not able to engage in these activities with other Federal grants. Cause: DEC did not designate these vendors as either subrecipients or subcontractors and therefore did not follow the Federal Uniform Guidance guidelines. Effect: Pass through entities, subcontractors and/or subrecipients could be out of compliance and misusing Federal funds. Repeat Finding: No Recommendation: CLA recommends DEC review the Uniform Guidance in relation to subrecipients and subcontractors, and for each vendor under contract, make a clear determination of which type of contract they fall under. Contracts should be drafted in conformity with either subrecipients or subcontractors (as directed by the Uniform Guidance). Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: ACL Centers for Independent Living Assistance Listing Number: 93.432 Federal Award Identification Number and Year: 2004WAILC3 - 2021 2006WAILC3 - 2021 2104WAILCL - 2022 2106WAILCL - 2022 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2004WAILC3 - 4/1/2020-9/30/22 2006WAILC3 - 4/1/20-9/30/22 2104WAILCL - 9/30/21-9/29/23 2106WAILCL - 9/30/21-9/29/23 Type of Finding: Subrecipient Monitoring/Procurement • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Per 2 CFR Part 200.331, a pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a subcontractor. If a subrecipient has been identified, per 2 CFR Part 200, Subpart F, pass through entities must notify subrecipients that they are receiving Federal funds as a subrecipient and must therefore comply with federal statutes, regulations, and the terms and conditions of the award. Additionally, pass through entities must keep documentation of monitoring the subaward. The pass through entity must have a control process in place to ensure it is in compliance with federal requirements related to subrecipient monitoring. If a subcontractor has been identified (and payment is above the micro-purchase threshold), per 2 CFR Part 200, Subpart D, the entity must have and use documented procurement procedures such as drafting a procurement policy, obtaining qualified bids, performing cost analyses and justifying reason for final selection. Condition: While there existed sophisticated procedures for reviewing, approving and monitoring applicants, they did not meet all of the Federal requirements for either that of subrecipients or subcontractors. Questioned costs: $62,857 In known questioned costs. Context: Upon receipt of the Federal ACL CARES ACT grants, the instructions were to use and disseminate the funds within the community for the purposes of supporting individuals with disabilities who were impacted by COVID and creating professional relationships in further support of individuals with disabilities. DEC was not aware of the Federal Uniform Guidance guidelines requiring DEC to make the determination of whether the vendors meet the characteristics of a subrecipient or a subcontractor and therefore did not follow the required procedures. This is an isolated instance due to the specific nature of the CARES ACT funds as DEC is not able to engage in these activities with other Federal grants. Cause: DEC did not designate these vendors as either subrecipients or subcontractors and therefore did not follow the Federal Uniform Guidance guidelines. Effect: Pass through entities, subcontractors and/or subrecipients could be out of compliance and misusing Federal funds. Repeat Finding: No Recommendation: CLA recommends DEC review the Uniform Guidance in relation to subrecipients and subcontractors, and for each vendor under contract, make a clear determination of which type of contract they fall under. Contracts should be drafted in conformity with either subrecipients or subcontractors (as directed by the Uniform Guidance). Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: ACL Centers for Independent Living Assistance Listing Number: 93.432 Federal Award Identification Number and Year: 2004WAILC3 - 2021 2006WAILC3 - 2021 2104WAILCL - 2022 2106WAILCL - 2022 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2004WAILC3 - 4/1/2020-9/30/22 2006WAILC3 - 4/1/20-9/30/22 2104WAILCL - 9/30/21-9/29/23 2106WAILCL - 9/30/21-9/29/23 Type of Finding: Subrecipient Monitoring/Procurement • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Per 2 CFR Part 200.331, a pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a subcontractor. If a subrecipient has been identified, per 2 CFR Part 200, Subpart F, pass through entities must notify subrecipients that they are receiving Federal funds as a subrecipient and must therefore comply with federal statutes, regulations, and the terms and conditions of the award. Additionally, pass through entities must keep documentation of monitoring the subaward. The pass through entity must have a control process in place to ensure it is in compliance with federal requirements related to subrecipient monitoring. If a subcontractor has been identified (and payment is above the micro-purchase threshold), per 2 CFR Part 200, Subpart D, the entity must have and use documented procurement procedures such as drafting a procurement policy, obtaining qualified bids, performing cost analyses and justifying reason for final selection. Condition: While there existed sophisticated procedures for reviewing, approving and monitoring applicants, they did not meet all of the Federal requirements for either that of subrecipients or subcontractors. Questioned costs: $62,857 In known questioned costs. Context: Upon receipt of the Federal ACL CARES ACT grants, the instructions were to use and disseminate the funds within the community for the purposes of supporting individuals with disabilities who were impacted by COVID and creating professional relationships in further support of individuals with disabilities. DEC was not aware of the Federal Uniform Guidance guidelines requiring DEC to make the determination of whether the vendors meet the characteristics of a subrecipient or a subcontractor and therefore did not follow the required procedures. This is an isolated instance due to the specific nature of the CARES ACT funds as DEC is not able to engage in these activities with other Federal grants. Cause: DEC did not designate these vendors as either subrecipients or subcontractors and therefore did not follow the Federal Uniform Guidance guidelines. Effect: Pass through entities, subcontractors and/or subrecipients could be out of compliance and misusing Federal funds. Repeat Finding: No Recommendation: CLA recommends DEC review the Uniform Guidance in relation to subrecipients and subcontractors, and for each vendor under contract, make a clear determination of which type of contract they fall under. Contracts should be drafted in conformity with either subrecipients or subcontractors (as directed by the Uniform Guidance). Views of responsible officials: There is no disagreement with the audit finding.
Finding No.: 2022-023 Federal Agency: U.S. Department of The Treasury AL Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award No.: COVID-19 Section 9901 of the American Rescue Plan Act of 2021 Area: Subrecipient Monitoring Questioned Costs: $0 Criteria: In accordance with applicable subrecipient requirements, a pass-through entity must: 1. Clearly identify to the subrecipient the award as a subaward by providing the ALN (Assistance Listings Number) and name. 2. Include the total amount provided to subrecipients from each Federal program. 3. Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals. This includes the verification that subrecipients expected to be audited as required by 2 CFR 200, subpart F, met the audit requirements. Condition: For the year ended September 30, 2022, GovGuam reported $195.6 million in total program expenditures in the Schedule of Federal Awards (SEFA). A total of $104M represents amounts passed through to GovGuam line agencies and component units, . Of this amount, approximately $48.9 million represents payments for various programs administered by Guam Economic Development Authority (GEDA). Only $55.1 million was identified as amounts passed through to GovGuam line agencies and component units in the final SEFA, which did not include the amounts administered by GEDA. According to Executive Order No. 2021-22, dated September 7, 2021, “GEDA is appointed to serve as the Program processor for Guam, subject to continued monitoring and oversight by the Office of the Governor. The Administrator of GEDA shall serve as the official responsible for overseeing GEDA’s fulfillment of the Program, which includes the following items:…[(]i[)].. Implementing the Program, inclusive of drafting the application, standard operating procedures (SOP), and other relevant documentation. [(]ii.[)] Receiving and reviewing applications and submitting payment requests to the Department of Administration for disbursement to eligible small businesses.” Government of Guam Schedule of Findings and Questioned Costs, continued 77 Finding No.: 2022-023, continued Federal Agency: U.S. Department of The Treasury AL Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award No.: COVID-19 Section 9901 of the American Rescue Plan Act of 2021 Area: Subrecipient Monitoring Questioned Costs: $0 Condition, continued: Similar language is documented in other executive orders, describing GEDA as the administrator of various programs funded by ALN 21.027 and describing GEDA’s responsibility to make eligibility determinations. Therefore, GEDA meets the definition of a subrecipient, and amounts administered by GEDA should be reported in the SEFA as amounts passed through to subrecipients. Cause: GovGuam did not properly identify amounts passed through to subrecipients and did not enforce compliance with applicable subrecipient monitoring requirements. The Department of Administration believes that GEDA is not a subrecipient. Effect: GovGuam is in noncompliance with applicable subrecipient monitoring requirements. No questioned cost is reported because GEDA is undergoing a Single Audit for FY 2022. Identification as a Repeat Finding: Finding 2021-021 Recommendation: GovGuam should enforce compliance with applicable subrecipient monitoring requirements. Responsible personnel should monitor subrecipients for compliance with Single Audit Act requirements. Also, GovGuam should consider seeking guidance and confirmation from the Grantor Agency regarding the classification of GEDA as either a subrecipient or a contractor. Government of Guam Schedule of Findings and Questioned Costs, continued 78 Finding No.: 2022-023, continued Federal Agency: U.S. Department of The Treasury AL Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award No.: COVID-19 Section 9901 of the American Rescue Plan Act of 2021 Area: Subrecipient Monitoring Questioned Costs: $0 Views of Responsible Officials: As for Fiscal Year 2022, payments to beneficiaries under the GEDA program were made directly by DOA. GEDA was not in receipt of any funds and by that plain language cannot be considered a subrecipient. DOA determined in accordance with 2CFR 200.331 that GEDA was not a Subrecipient: Auditors may, but have not to date, requested access to GEDA and DOA records for verification eligibility. CFR§200.331 reads: “(c) Use of judgment in making a determination. In determining whether an agreement between a pass-through entity and another non-federal entity cast the latter as a Subrecipient or a contractor, the substance of the relations is more important than the form of the agreement. All the characteristics listed above may not be present in all cases, and the pass-through entity must use judgement in classifying each agreement as a subaward or a procurement contract.” Auditor Response: DOA’s determination differs from our judgement in classifying the agreement with GEDA. CFR§200.331 also reads: “ (a) Subrecipients. A subaward is for the purpose of carrying out a portion of a Federal award and creates a Federal assistance relationship with the subrecipient…. Characteristics which support the classification of the non-Federal entity as a subrecipient include when the non-Federal entity: (1) Determines who is eligible to receive what Federal assistance;… .” The substance of the relations is for GEDA to carry out a key portion of the Federal award by determining who is eligible to receive Federal assistance, as well as how much each beneficiary should receive, which is more important than the form of the agreement for DOA to act as a financial institution in writing the check. Therefore, GEDA meets the definition of a subrecipient, which is consistent with the fact that GovGuam did not subject the selection of GEDA to a procurement process. Examination by auditors of GEDA’s records as to beneficiary eligibility is not required because the compliance requirement of eligibility is not subject to audit per the OMB Compliance Supplement. Moreover, such eligibility tests would not address this finding relative to subrecipient monitoring. There is no evidence that DOA monitored GEDA’s eligibility determinations for FY 2022.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Finding No. 2022-002: Inadequate Subrecipient Management Federal Assistance Listing Program Title and Number: Continuum of Care Program 14.267 (?CoC?) Federal Agency: U.S. Department of Housing and Urban Development Criteria: 2 CFR Section 200.331 Requirements for pass through entities and Section 570.503 Agreements with Subrecipients. Condition: Subrecipient award agreements did not include all regulatory requirements and citations. Cause: Subrecipient management documents need strengthening. Effect: The subrecipient award agreements lack accurate and accessible information to ensure that the subrecipients have adequate guidance to implement their programs in compliance with CoC regulations. Questioned Costs: None Context: The Organization has various policies and procedures available to its subrecipients, however these policies and procedures are not centralized and difficult to locate.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: ACL Centers for Independent Living Assistance Listing Number: 93.432 Federal Award Identification Number and Year: 2004WAILC3 - 2021 2006WAILC3 - 2021 2104WAILCL - 2022 2106WAILCL - 2022 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2004WAILC3 - 4/1/2020-9/30/22 2006WAILC3 - 4/1/20-9/30/22 2104WAILCL - 9/30/21-9/29/23 2106WAILCL - 9/30/21-9/29/23 Type of Finding: Subrecipient Monitoring/Procurement • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Per 2 CFR Part 200.331, a pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a subcontractor. If a subrecipient has been identified, per 2 CFR Part 200, Subpart F, pass through entities must notify subrecipients that they are receiving Federal funds as a subrecipient and must therefore comply with federal statutes, regulations, and the terms and conditions of the award. Additionally, pass through entities must keep documentation of monitoring the subaward. The pass through entity must have a control process in place to ensure it is in compliance with federal requirements related to subrecipient monitoring. If a subcontractor has been identified (and payment is above the micro-purchase threshold), per 2 CFR Part 200, Subpart D, the entity must have and use documented procurement procedures such as drafting a procurement policy, obtaining qualified bids, performing cost analyses and justifying reason for final selection. Condition: While there existed sophisticated procedures for reviewing, approving and monitoring applicants, they did not meet all of the Federal requirements for either that of subrecipients or subcontractors. Questioned costs: $62,857 In known questioned costs. Context: Upon receipt of the Federal ACL CARES ACT grants, the instructions were to use and disseminate the funds within the community for the purposes of supporting individuals with disabilities who were impacted by COVID and creating professional relationships in further support of individuals with disabilities. DEC was not aware of the Federal Uniform Guidance guidelines requiring DEC to make the determination of whether the vendors meet the characteristics of a subrecipient or a subcontractor and therefore did not follow the required procedures. This is an isolated instance due to the specific nature of the CARES ACT funds as DEC is not able to engage in these activities with other Federal grants. Cause: DEC did not designate these vendors as either subrecipients or subcontractors and therefore did not follow the Federal Uniform Guidance guidelines. Effect: Pass through entities, subcontractors and/or subrecipients could be out of compliance and misusing Federal funds. Repeat Finding: No Recommendation: CLA recommends DEC review the Uniform Guidance in relation to subrecipients and subcontractors, and for each vendor under contract, make a clear determination of which type of contract they fall under. Contracts should be drafted in conformity with either subrecipients or subcontractors (as directed by the Uniform Guidance). Views of responsible officials: There is no disagreement with the audit finding.