Finding 1076764 (2023-006)

Material Weakness
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: The Organization lacks effective internal controls for subrecipient monitoring, leading to a material weakness in compliance.
  • Impacted Requirements: Failure to meet CFR Part 200 requirements for managing federal awards increases the risk of non-compliance.
  • Recommended Follow-Up: Implement and document policies and procedures for subrecipient monitoring to ensure compliance and accountability.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: The Department of Health and Human Services/Centers for Disease Control and Prevention Assistance Listing Number: 93.323 Federal Award Identification Number and Year: NU50CK000515 - 2021 Pass-Through Agency: State of Washington Department of Health Pass-Through Number: CBO28488-0 Award Period: July 1, 2023 through July 31, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance – Subrecipient Monitoring • Other Matters Criteria or specific requirement: CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.303 specifies that a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Organization did not have policies and procedures in place to ensure all the requirements of subrecipient monitoring were being performed. Questioned costs: None. Context: Of the five subrecipients selected for testing (there were seven in the population), we noted that none of them had proper monitoring in place. Cause: Policies and procedures were not in place to provide adequate subrecipient monitoring. Effect: The Organization could pass through federal funding to subrecipients who are not responsible or capable recipients of the funds. Funding could be used by the subrecipients in ways that are incompatible with program goals and compliance requirements. Recommendation: We recommend that the Organization implements policies and procedures to perform subrecipient monitoring and that monitoring is formally documented and approved. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 500318 2023-002
    Significant Deficiency
  • 500319 2023-003
    Material Weakness
  • 500320 2023-004
    Material Weakness
  • 500321 2023-005
    Material Weakness
  • 500322 2023-006
    Material Weakness
  • 1076760 2023-002
    Significant Deficiency
  • 1076761 2023-003
    Material Weakness
  • 1076762 2023-004
    Material Weakness
  • 1076763 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.16M