Core Issue: The Organization failed to provide a contract for 1 out of 11 subrecipient samples, violating monitoring policies.
Impacted Requirements: This deficiency indicates non-compliance with established subrecipient monitoring procedures.
Recommended Follow-Up: Ensure adherence to procurement policies to prevent misuse of funds related to Federal Awards.
Finding Text
2024-001 Monitoring of Funds Passed to a Subrecipient – Significant Deficiency
Criteria: The Organization should follow their policies related to subrecipient monitoring.
Condition: During our testing, we found 1 instance out of 11 samples that the Organization could not produce a contract with a subrecipient that establishes critical information for the monitoring procedures to be performed.
Cause: Undetermined.
Effect: The Organization did not follow their policy for subrecipient monitoring which could allow for funds to be expended for purposes outside of the Federal Award.
Recommendation: We recommend that the Organization follows their policies related to procurement.