Finding 1113982 (2024-002)

U.S. DEPARTMENT OF TREASURY , SIGNIFICANT DEFICIENCY 2024-002 COVID-19 Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Identification of Federal Subaward Condition: The Agency did not identify a subrecipient of the Coronavirus State and Local Fiscal Recovery Funds and applicable requirements at the time a subaward was made to another Organization. Criteria: Internal controls should be in place to ensure management identifies any subrecipients of Federal grants and has processes in place to notify and monitor the subrecipient. Cause: There were no procedures in place to determine if any grants were subawards to subrecipients. Effect: Because the terms and conditions of the subaward were not identified, the Agency may not have been able to comply with Federal statutes, regulations, and the terms and conditions of the Federal award. Recommendation: Procedures should be implemented to evaluate grant activity and contracts to make a determination of subrecipients or beneficiaries on all grant awards.