Finding 1086060 (2023-003)

Significant Deficiency Repeat Finding
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-11-20

AI Summary

  • Core Issue: The Organization failed to review supporting documentation for all subrecipient invoices, violating monitoring requirements.
  • Impacted Requirements: This lack of review means the Organization is not compliant with federal subrecipient monitoring standards.
  • Recommended Follow-Up: Improve internal controls and procedures to ensure all local club invoices are properly reviewed and documented.

Finding Text

Federal Program Information: Education Stabilization Fund (ALN 84.425U) Criteria: M. Subrecipient Monitoring - The Subgrantee shall ensure its monitoring methods provide reasonable assurance that the subrecipient used the subaward for authorized purposes in compliance with federal statutes, regulations, and the terms and conditions of the subaward. Condition: Supporting documentation for certain subrecipient invoices was not reviewed by the Organization. Cause: Insufficient internal control and administrative oversight. Effect or Potential Effect: The Alliance was not in compliance with subrecipient monitoring requirements. Questioned Costs: None Context: For 16 of 16 subrecipient invoices selected for testing, the Organization did not have evidence of review of source documentation from the subaward recipient. Recommendation: We recommend the Organization enhance its procedures and internal controls over subrecipient monitoring to ensure local club invoices are properly reviewed. Identification as a Repeat Finding: There was a similar finding identified in prior year. Views of Responsible Officials: The Alliance will enhance its procedures and internal controls over subrecipient monitoring to ensure that evidence of proper review of local club invoices is maintained.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $2.99M
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $42,873