Finding 1090950 (2023-006)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-12-16

AI Summary

  • Core Issue: Subawards lack required information, and no risk assessments or monitoring procedures are in place.
  • Impacted Requirements: Compliance with 2 CFR section 200.332 is not met, risking subrecipient noncompliance and potential disallowed costs.
  • Recommended Follow-up: Develop and document subrecipient monitoring procedures and internal controls to ensure compliance with federal regulations.

Finding Text

Assistance Listing Numbers: 10.001, 10.200, 10.215, 10.307, 10.310, 10.311, and 10.912 Name of Federal Program or Cluster: Research and Development Cluster Name of Federal Agency: Department of Agriculture Federal Award Identification Numbers: 58-5090-2-037 2022-38624-38368 2021-38640-34714 2020-38640-31522 2022-38640-37486 2023-51300-40959 2021-68012-35917 2019-68012-29852 2020-68012-31934 2021-49400-35592 NR225F48XXXXG006 Name of Pass-through Entities and Award Periods: Michigan State University-September 1, 2022 through August 31, 2025; Regents of the University of Minnesota- April 1, 2021 through March 31, 2023, March 1, 2022 through February 28, 2025, and April 1, 2023 through March 31, 2025; Board of Regents of the University of Wisconsin System- September 1, 2019 through August 31, 2024, September 1, 2020 through August 31, 2025, and January 1, 2022 through December 31, 2026 Criteria: 2 CFR section 200.332(a) requires pass-through entities to ensure every subaward is clearly identified to the subrecipient as a subaward and includes the required federal award identification information, all requirements imposed by the pass-through entity on the subrecipient, any additional requirements the pass-through entity imposes on the subrecipient, an indirect cost rate, a requirement that the subrecipient permit the pass-through entity and auditors to have access to the subrecipient’s records and financial statements, and appropriate terms and conditions concerning the closeout of the subaward. 2 CFR section 200.332(b) requires the pass-through entity to evaluate each subrecipient’s risk of noncompliance with federal statutes, regulations, and the terms and conditions for determining appropriate subrecipient monitoring. 2 CFR section 200.332(d) requires the pass-through entity to monitor the activities of the subrecipient to ensure that the subaward is used for authorized purposes, in compliance with federal statutes, regulations, and the terms and conditions of the subaward, and that the subaward performance goals are achieved. 2 CFR section 200.332(f) requires the pass-through entity to verify that every subrecipient is audited as required by the Uniform Guidance when it is expected that the subrecipient’s federal awards expended during the respective fiscal year equaled or exceeded $750,000. Condition: No subaward agreements included all required information. No risk assessments were performed and documented. No monitoring procedures were performed other than reviewing invoices to be paid and an audit report received. Cause: Internal controls have not been designed, implemented, and documented in written procedures. Internal controls are not designed or implemented to ensure subrecipient agreements include the required information, to perform risk assessments, to establish monitoring procedures based on risks, to ensure monitoring takes placed as planned, and to verify and document whether subrecipients that expended $750,000 or more in federal awards is audited in accordance with the Uniform Guidance. Effect or Potential Effect: Subrecipients may not be in compliance with the terms and conditions of the award and costs charged may be unallowable and disallowed. Repeat Finding: This is a repeat of Finding 2022-003. Recommendation: Procedures for subrecipient monitoring to meet federal statutes, regulations, and terms and conditions of the awards should be developed and documented. Internal controls should be designed, implemented, and documented within the subrecipient monitoring procedures to ensure compliance with 2 CFR section 200.332. Subrecipient monitoring activities should be performed and documented. Views of Responsible Officials: Management agrees with the finding and will implement procedures.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 514472 2023-003
    Material Weakness
  • 514473 2023-003
    Material Weakness
  • 514474 2023-003
    Material Weakness
  • 514475 2023-003
    Material Weakness
  • 514476 2023-003
    Material Weakness
  • 514477 2023-003
    Material Weakness
  • 514478 2023-003
    Material Weakness
  • 514479 2023-003
    Material Weakness
  • 514480 2023-003
    Material Weakness
  • 514481 2023-003
    Material Weakness
  • 514482 2023-003
    Material Weakness
  • 514483 2023-004
    Material Weakness Repeat
  • 514484 2023-004
    Material Weakness Repeat
  • 514485 2023-004
    Material Weakness Repeat
  • 514486 2023-004
    Material Weakness Repeat
  • 514487 2023-004
    Material Weakness Repeat
  • 514488 2023-004
    Material Weakness Repeat
  • 514489 2023-004
    Material Weakness Repeat
  • 514490 2023-004
    Material Weakness Repeat
  • 514491 2023-004
    Material Weakness Repeat
  • 514492 2023-004
    Material Weakness Repeat
  • 514493 2023-004
    Material Weakness Repeat
  • 514494 2023-005
    Material Weakness Repeat
  • 514495 2023-005
    Material Weakness Repeat
  • 514496 2023-005
    Material Weakness Repeat
  • 514497 2023-005
    Material Weakness Repeat
  • 514498 2023-005
    Material Weakness Repeat
  • 514499 2023-005
    Material Weakness Repeat
  • 514500 2023-005
    Material Weakness Repeat
  • 514501 2023-005
    Material Weakness Repeat
  • 514502 2023-005
    Material Weakness Repeat
  • 514503 2023-005
    Material Weakness Repeat
  • 514504 2023-005
    Material Weakness Repeat
  • 514505 2023-006
    Material Weakness Repeat
  • 514506 2023-006
    Material Weakness Repeat
  • 514507 2023-006
    Material Weakness Repeat
  • 514508 2023-006
    Material Weakness Repeat
  • 514509 2023-006
    Material Weakness Repeat
  • 514510 2023-006
    Material Weakness Repeat
  • 514511 2023-006
    Material Weakness Repeat
  • 514512 2023-006
    Material Weakness Repeat
  • 514513 2023-006
    Material Weakness Repeat
  • 514514 2023-006
    Material Weakness Repeat
  • 514515 2023-006
    Material Weakness Repeat
  • 514516 2023-007
    Material Weakness
  • 514517 2023-007
    Material Weakness
  • 514518 2023-007
    Material Weakness
  • 514519 2023-007
    Material Weakness
  • 514520 2023-007
    Material Weakness
  • 514521 2023-007
    Material Weakness
  • 514522 2023-007
    Material Weakness
  • 514523 2023-007
    Material Weakness
  • 514524 2023-007
    Material Weakness
  • 514525 2023-007
    Material Weakness
  • 514526 2023-007
    Material Weakness
  • 1090914 2023-003
    Material Weakness
  • 1090915 2023-003
    Material Weakness
  • 1090916 2023-003
    Material Weakness
  • 1090917 2023-003
    Material Weakness
  • 1090918 2023-003
    Material Weakness
  • 1090919 2023-003
    Material Weakness
  • 1090920 2023-003
    Material Weakness
  • 1090921 2023-003
    Material Weakness
  • 1090922 2023-003
    Material Weakness
  • 1090923 2023-003
    Material Weakness
  • 1090924 2023-003
    Material Weakness
  • 1090925 2023-004
    Material Weakness Repeat
  • 1090926 2023-004
    Material Weakness Repeat
  • 1090927 2023-004
    Material Weakness Repeat
  • 1090928 2023-004
    Material Weakness Repeat
  • 1090929 2023-004
    Material Weakness Repeat
  • 1090930 2023-004
    Material Weakness Repeat
  • 1090931 2023-004
    Material Weakness Repeat
  • 1090932 2023-004
    Material Weakness Repeat
  • 1090933 2023-004
    Material Weakness Repeat
  • 1090934 2023-004
    Material Weakness Repeat
  • 1090935 2023-004
    Material Weakness Repeat
  • 1090936 2023-005
    Material Weakness Repeat
  • 1090937 2023-005
    Material Weakness Repeat
  • 1090938 2023-005
    Material Weakness Repeat
  • 1090939 2023-005
    Material Weakness Repeat
  • 1090940 2023-005
    Material Weakness Repeat
  • 1090941 2023-005
    Material Weakness Repeat
  • 1090942 2023-005
    Material Weakness Repeat
  • 1090943 2023-005
    Material Weakness Repeat
  • 1090944 2023-005
    Material Weakness Repeat
  • 1090945 2023-005
    Material Weakness Repeat
  • 1090946 2023-005
    Material Weakness Repeat
  • 1090947 2023-006
    Material Weakness Repeat
  • 1090948 2023-006
    Material Weakness Repeat
  • 1090949 2023-006
    Material Weakness Repeat
  • 1090951 2023-006
    Material Weakness Repeat
  • 1090952 2023-006
    Material Weakness Repeat
  • 1090953 2023-006
    Material Weakness Repeat
  • 1090954 2023-006
    Material Weakness Repeat
  • 1090955 2023-006
    Material Weakness Repeat
  • 1090956 2023-006
    Material Weakness Repeat
  • 1090957 2023-006
    Material Weakness Repeat
  • 1090958 2023-007
    Material Weakness
  • 1090959 2023-007
    Material Weakness
  • 1090960 2023-007
    Material Weakness
  • 1090961 2023-007
    Material Weakness
  • 1090962 2023-007
    Material Weakness
  • 1090963 2023-007
    Material Weakness
  • 1090964 2023-007
    Material Weakness
  • 1090965 2023-007
    Material Weakness
  • 1090966 2023-007
    Material Weakness
  • 1090967 2023-007
    Material Weakness
  • 1090968 2023-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.001 Agricultural Research Basic and Applied Research $481,072
10.311 Beginning Farmer and Rancher Development Program $383,791
10.310 Agriculture and Food Research Initiative (afri) $59,821
10.912 Environmental Quality Incentives Program $42,101
10.200 Grants for Agricultural Research, Special Research Grants $24,724
10.215 Sustainable Agriculture Research and Education $13,525
10.902 Soil and Water Conservation $5,896
10.307 Organic Agriculture Research and Extension Initiative $3,747