Finding Text
Finding 2023-002: Subrecipient Monitoring - Review of Audit Reports
Information on the Federal Program: Assistance Listing Numbers 19.705 and 19.345
Criteria: As stated in 2 CFR 200.332(f), all pass-through entities must verify that every subrecipient is
audited as required by 2 CFR 200 Subpart F when it is expected that the subrecipient's Federal awards
expended during the respective fiscal year equaled or exceeded the threshold for triggering such an
audit.
Condition: We were unable to determine whether Accountability Lab performed procedures to verify
whether or not its subrecipients were subject to a compliance audit in accordance with 2 CFR 200
Subpart F.
Cause: Accountability Lab does not have a formal/regularized process in place to monitor subrecipient
audit requirements.
Effect: Accountability Lab's current practices do not provide sufficient documentation to demonstrate
its compliance with the requirements to obtain and review subrecipient audit reports.
Questioned Costs: None noted.
Context: Our audit work included three subrecipients across two major programs. For two out of the
three subrecipients tested, we were not able to verify whether or not Accountability Lab obtained and
reviewed the subrecipient audit reports.
Identification as a Repeat Finding: Not applicable.
Recommendation: Accountability Lab should implement a "Review of Subrecipient Audit" form, to be
completed annually for each subrecipient that receives U.S. Government funding. The form should
document a) the subrecipient's name; b) the annual amount of U.S. Government funds expended by
the subrecipient; c) whether the subrecipient was subject to a U.S. Government compliance audit
under 2 CFR 200 Subpart F; and d) Accountability Lab's formal review of the audit report as well as its
conclusions and follow up on any reported findings, if applicable.