Finding 1094873 (2023-001)

2023-01-Written subrecipient monitoring policies and procedures have not been established, and risk evaluation and monitoring have not been documented Finding type- Material weakness in internal control over subrecipient monitoring. Criteria- Pass-through entities must establish written policies and procedures for monitoring subrecipients. Pass-through entities must perform subrecipient risk of noncompliance evaluations for the purpose of determining the appropriate subrecipient monitoring to perform. Pass-through entities must document subrecipients monitoring. Condition- Written subrecipient monitoring policies and procedures have not been established. Subrecipient non-compliance risk evaluations and monitoring were not documented. Effect of Condition- This condition could increase the risk of federal funding being inappropriately spent. . Recommendation- We recommend written policies and procedures be established for subrecipient monitoring. We recommend all subrecipient non-compliance risk evaluation and monitoring be documented in the subrecipient case file. . View of Responsible Officials- RHPHF agrees with the findings and the auditor’s recommendations above.