Finding Text
2024-004 - Subrecipient Monitoring Activities Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Subrecipient Monitoring) Programs. Environmental and Scientific Partnerships and Programs; U.S. Department of State; ALN Number 19.017; Award Number SAQMIP23CA0021 Criteria. Under 2 CFR Part 200.332(b), a pass-through entity must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes certain information required per the Uniform Guidance. Condition. During subrecipient monitoring testing, the ALN number and award number were not included in the four subrecipient agreements subjected to testing. Additionally, the Organization does not have a policies/procedures in place to evaluate and address subrecipient's fraud risk and risk of noncompliance. Cause. The Organization does not have the proper internal controls in place to ensure all aspects of subrecipient monitoring were performed in accordance with the requirements of the Uniform Guidance. Effect. Although certain subrecipient monitoring activities were performed, the Organization did not comply with all the federal requirements for subrecipient monitoring for pass-through entities. Questioned Costs. None Recommendation. We recommend that the Organization adopts additional policies and procedures related to subrecipient monitoring to ensure compliance with Uniform Guidance. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.