Finding Text
INTERNAL CONTROL – MATERIAL WEAKNESS AND NONCOMPLIANCE
COVID-19 – Coronavirus State and Local Fiscal Relief Funds – 21.027
2023-005 – Subrecipient Monitoring
Criteria:
The City is responsible for identifying the applicable requirements and relevant terms and conditions to the subaward entity at the time of award, or by means subsequent modification to the subawards.
Condition:
The City’s agreement with Johnstown Redevelopment Authority relating to the Weatherization program, funded by means of State and Local Fiscal Relief Funds, was not appropriately amended to reflect the intentions of both entities subsequent to the initial award.
Cause:
The intentions of each party with respect to the nature of the subaward with Johnstown Redevelopment Authority changed after the initial award and there were no subsequent modifications to the subaward agreement.
Effect:
The condition above could have resulted in programmatic issues related to spending as well as reporting over the subaward period.
Context:
The City is responsible for clearly outlining the terms and conditions of subawards.
Questioned Costs:
We questioned $336,467 of costs because that was the total amount passed to the subrecipient during the year ended December 31, 2023.
Recommendation:
We recommend that the City appropriately amend its subaward agreement with Johnstown Redevelopment Authority to clearly specify the terms and conditions of the agreement.