Finding Text
2024SA-003 Insufficient Subrecipient Monitoring Federal Agency/Passthrough Agency: US Department of Health and Human Services Program: SAMHSA Grant Depression Screening in School based Health Centers Federal Award Number: 43382006L Assistance Listing Number: 93.243 Material Weakness Material Noncompliance – Financial Management Criteria: 2 CFR 200.332 states the recipient should monitor the activities of the subrecipient as necessary to ensure that the subawards are used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR section 200.332 (d) through (f)), in addition to procedures identified as necessary based upon the evaluation of the subrecipient risk or specifically required by the terms and conditions of the award. Condition: The Health Department gave $100,000 to the Community Foundation of East Central IL to help fund new TASK programs at 4 local school districts. Our inquiry regarding subrecipient monitoring determined that no subrecipient monitoring was taking place. Context: From reviews of the County and Health Department’s internal control and accounting procedures along with inquiries made, it was indicated that the Health Department has not gained an adequate understanding of all of the compliance requirements related to federal awards and has not developed necessary internal controls to ensure compliance, including but not limited to subrecipient monitoring. Effect: Potential for misappropriation of funds by the subrecipient due to lack of monitoring. Questioned Costs: None. Cause: There is a systematic problem throughout the County regarding a lack of adequate knowledge of compliance requirements related to federal awards, a lack of documentation of risk assessments being completed, and a continued disregard for establishing and documenting effective internal controls, in particular there is an absence of secondary reviews and monitoring. Repeated Finding: No Recommendation: Review the federal guidelines and requirements related to management of federal awards. Establish and document a plan to ensure compliance with each requirement. In this instance, establish necessary procedures to monitor the subrecipient’s compliance with the federal guidelines. Management’s Response: The Health Department will establish procedurs for subrecipient monitoring.