Finding Text
Criteria
Part 2 CFR Part 200, Subpart D, section 200.332 illustrates requirements related to the Agency passing funds through to subrecipients. Pass through entities must “Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statues, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved”.
Condition
The Agency did not have any formal controls or procedures in place for subrecipient monitoring for the STOP School Violence program or the Healthy Marriage Promotion and Responsible Fatherhood Grants until the end of the fiscal year under audit. As such, controls were not in place for the majority of the fiscal year.
Cause
Lack of implementation of proper policies and procedures to verify compliance with the subrecipient monitoring requirements identified in 2 CFR 200.332.
Repeat Finding
Yes. Refer to prior year findings 2023-003 and 2023-004.
Effect
The Agency did not maintain policies and procedures in accordance with the subrecipient monitoring requirements identified in 2 CFR 200.332 over the full fiscal year under audit. Noncompliance may impact future funding from federal and state resources.
Recommendation
We recommend the Agency implement policies and procedures to ensure compliance with subrecipient monitoring requirements, as outlined in 2 CFR 200.332.
Management Response and Corrective Action Plan
See attached corrective action plan.