Finding 1156754 (2024-002)

Finding 2024-002 – Subrecipient Monitoring (Material Weakness) Program Information: 11.307 Economic Adjustment Assistance Criteria: Per 2 CFR § 200.332, pass-through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes specific information at the time of issuance and upon modification. Required elements include federal award identification; all requirements of the subaward including the federal statutes, regulations and terms and conditions; indirect cost rate; access to records; and closeout terms and conditions. Condition: The Organization awarded 13 awards to subrecipients and did not include the information required by 2 CFR § 200.332 in the subaward agreement. Cause/Effect: The pass-through entity did not have a standardized process or checklist to ensure all required subaward elements were included in the agreements. Failure to communicate the federal nature of the award may result in subrecipients not being aware of their responsibilities under federal regulations, which could lead to noncompliance and misuse of federal funds. Questioned costs: None Repeat findings: No similar findings noted in the prior year. Recommendation: We recommend that the pass-through entity implement a standardized subaward template and checklist aligned with 2 CFR § 200.332. Staff should be trained on Uniform Guidance requirements to ensure all subawards include the necessary elements. Views of responsible officials: Management agrees with the finding and the auditors’ recommendation. See Corrective Action Plan at the end of the report.