Finding Text
Federal agency name: U.S. National Science Foundation & U.S. Department of Commerce Federal program title: Geosciences, Computer and Information Science and Engineering, Office of International Science and Engineering & NOAA – Cooperative Institute AL No.: 47.050, 47.070, 47.079 & 11.432 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019 -05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), OAC-1931278 (10/1/2019 – 09/30/2023), EAR- 2244446 (03/01/2023 – 02/28/2026), OAC-2209833 (01/01/2023 – 12/31/2026), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2024), OAC-2103780 (10/01/2021 – 09/30/2026), OAC-2118329 (10/01/2021 – 09/30/2026), OISE-1855654 (05/15/2019 – 12/31/2023) & A22NWS4320003 (08/01/2022 – 07/25/2025, 08/01/2022 – 07/25/2025, 04/01/2023 – 03/31/2024, 06/01/2023 – 05/31/2024, 06/01/2023 – 05/31/2026, 06/01/2023 – 05/31/2025, 06/01/2023 – 05/31/2025) Pass Through Entity: University of Alabama MW2023-003 SUBRECIPIENT MONITORING Material Weakness Criteria The regulations are documented in 31 USC 7502(f)(2), 2 CFR sections 200.330, .331, and .501(h); (Requirements for Pass-Through Entities). The criteria for monitoring subrecipients of federal awards should be following federal regulations, the terms of the federal contract, and any additional requirements specified by the auditee's policies and procedures. Specifically, the monitoring criteria should include, but not be limited to, the following: • Subrecipient Risk Assessment • Financial Monitoring • Compliance Monitoring • Reporting and Documentation Condition The auditee failed to comply with federal regulations requiring the monitoring of subrecipients for federal awards on a timely basis. Recipients of federal awards are responsible for monitoring the activities of subrecipients to ensure that they comply with applicable laws, regulations, and the terms and conditions of the federal award. CUAHSI did not complete the monitoring of its 2023 subrecipients until 2024. During the year ended December 31, 2023, CUAHSI had $627,464 in amounts paid to subrecipients. Based on our testing of amounts paid to subrecipients, no amounts were identified as unallowable. Cause & Context CUAHSI had a policy and procedure manual in place which outlined the steps for monitoring. There was no audit evidence of CUAHSI following the policy and monitoring that the subrecipient was using the funding as prescribed during the year ended December 31, 2023. Effect CUAHSI’s lack of monitoring creates a significant risk of the possible misuse or improper use of funds. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2022-005. Recommendation The auditor recommends that management review the requirements documented in 31 USC 7502(f)(2), 2 CFR sections 200.330, .331, and .501(h);(Requirements for Pass-Through Entities) and develops and implements procedures to adhere to such requirements. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.