Finding Text
2024-005 Subrecipient Monitoring
Federal Programs – AL 64.033 – Supportive Services for Veteran Families (SSVF)
Criteria – Uniform Guidance requires, for any funds passed through to a subrecipient, that the
pass-through entity (CAPND) must perform certain activities to ensure that the subrecipient
uses the funds within provisions of the grant award and Uniform Guidance (2 CFR sections
200.331 (d) through (f)).
Condition – For the year ended December 31, 2024, we noted one instance in which noneligible
expense by a subrecipient were reimbursed and CAPND drew down on the grant for.
Cause – There was a request for by a subrecipient to reimburse expenses that did not exist.
This request was authorized by CAPND and the payment was sent to the subrecipient for noneligible
expenses. CAPND then drew down on the grant for the non-existing expense. Effect – Noncompliance with the grant.
Questioned costs – $159.73
Repeat Finding – This is not a repeat finding.
Recommendation – Implement a system of internal control in which all expenses that
subrecipient request to be reimbursed have supporting documentation.
Views of Responsible Officials – Management recognized the deficiency and plans to implement
the auditor’s recommendation.