Finding 1075744 (2023-001)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2024-09-30
Audit: 322139
Organization: Access Tusc (OH)

AI Summary

  • Core Issue: The Organization's liability insurance coverage is only $1,000,000, which is below the required $1,500,000.
  • Impacted Requirements: This non-compliance violates Section 10.1 of the Subaward Grant Agreement regarding required insurance coverage.
  • Recommended Follow-Up: The Organization needs to review and increase its insurance coverage to meet the grant's minimum requirements.

Finding Text

Section 10.1 of Subaward Grant Agreement OH-2023-X01, Required Insurance Coverage, states that a nonprofit organization subrecipient shall maintain a minimum amount of liability insurance of $1,500,000 per occurrence and in the aggregate throughout the project life. During audit testing, I reviewed the Organization's liability insurance policy for coverage limits and noted that the Organization's coverage amount was $1,000,000 per occurrence and in the aggregate which is below the required minimum. The Organization should review insurance policies and increase coverage levels to meet the minimum amounts required by the grant agreement.

Categories

Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.495 Community Covid Response Grant $386,024
20.509 Formula Grants for Rural Areas and Tribal Transit Program $372,150
23.002 Appalachian Area Development $134,657