Finding 1142559 (2024-002)

2024-002: Subrecipient Monitoring Federal Agency: U.S. Department of Education Federal Program: IDEA Assistance Listing Number: 84.027 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Non-federal entities are required by Uniform Guidance to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our testing of subrecipient monitoring, it was noted the Agency could not provide evidence that it had performed a review of the single audit for one of its subrecipients.. Context: CLA noted one of seven subrecipients tested did not have evidence of a review taken place by the Agency. Effect: There is potential that the subrecipient could be out of compliance with federal requirements without the Agency’s knowledge. Cause: There was a lack of management oversight in retaining documentation of the subrecipient review. Repeat Finding: Finding was not reported in the previous fiscal year. Recommendation: We recommend that the Agency should ensure it retains documentation of all subrecipient monitoring reviews as mandated by Uniform Guidance. Views of responsible officials: Management will work to implement controls that will ensure subrecipient monitoring requirements are met.