Finding Text
Subrecipient Monitoring Criteria – The Uniform Guidance, Part 200.332 states in part, “All pass-through entities must: evaluate each subrecipient’s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring.” The Uniform Guidance, Part 200.332 also states, “All pass-through entities must: monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include reviewing financial and performance reports required by the pass-through entity, following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward and issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by Part 200.521.” The Uniform Guidance, Part 200.332 also states, “All pass-through entities must: Verify that every subrecipient is audited as required by Subpart F when it is expected that the subrecipient’s Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in Part 200.501” and that “All pass-through entities must: consider whether the results of the subrecipient’s audits, on-site reviews, or other monitoring indicate conditions that necessitate adjustments to the pass-through entity’s own records.” Condition – The Local Workforce Development Area did not evaluate the subrecipient’s risk of noncompliance with Federal statutes, regulations and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the Local Workforce Development Area did not evidence the review of the subrecipient’s audit report or have procedures in place to track and monitor the status of audit findings that require follow-up. Cause – The Local Workforce Development Area has not established policies and procedures to ensure compliance with the Uniform Guidance, Part 200.332. Effect – The Local Workforce Development Area did not evaluate the subrecipient’s riskof no ncompliance or monitor the status of subrecipient’s audit reports and audit findings due to a lack of policies and procedures. Recommendation – The Local Workforce Development Area should establish policies and procedures to ensure compliance with the Uniform Guidance, Part 200.332. Response and Corrective Action Planned – Policies have already been updated, and risk assessments have been completed for subsequent years. Conclusion - Response accepted.