Finding Text
Criteria or Specific Requirement: Per 2 CFR 200.332(b), Pass-through entities are responsible for identifying all the information in the subaward agreement to the subrecipients to provide reasonable assurance that subrecipient used the subaward for authorized purposes in compliance with federal statutes, regulations, and the terms and conditions of the subaward. Condition: The sole subaward issued under the federal program lacked key information identifying the recipient as a subrecipient of federal funding. Questioned Costs: None Context: There was only one subrecipient and subaward agreement lacking the key information outlined in 2 CFR 200.332(b). This subrecipient was started by former SFP employees and contractors and was only later split off as a separate legal entity. The intermingled nature of the original relationship of the subrecipient’s projects lead to the lack of formalized information in the subaward. Cause: Lack of adequate knowledge about the information required to be included in subaward agreements, per Uniform Guidance requirements. Effect: A lack of clear identification of federal funding in a subaward could lead to a subrecipient misunderstanding the nature of the funding sources it receives and the corresponding single audit requirements. Repeat Finding: No Recommendation: CLA recommends amending existing subaward agreements to include the award information required by CFR 200.332(b) and to verify all future subawards agreements include all necessary information prior to issuance. Views of Responsible Officials: There is no disagreement with the audit finding.