Finding Text
Federal Program: Temporary Assistance for Needy Families (TANF) (93.558). Criteria: 2 CFR 200.332(d) requires pass-through entities to monitor the activities of subrecipients to ensure compliance with federal statutes, regulations, and the terms and conditions of the subaward. Required monitoring activities include reviewing financial and performance reports, following up on deficiencies, and ensuring timely corrective action. Condition: The Council did not perform required monitoring procedures for subrecipients as required by Uniform Guidance: Cause: The Council lacked formal procedures and controls for tracking and reviewing subrecipient audit reports and for documenting follow-up on identified deficiencies. Effect: There is an increased risk that subrecipients may not comply with federal requirements, which could result in unallowable costs, questioned costs, or other noncompliance with federal statutes and regulations. Questioned Costs: None. Context: This finding was noted in 3 out of 4 subrecipients for the fiscal year ended June 30, 2025 with a total of $124,302 paid to subrecipients. Repeat Finding: No. Recommendation: We recommend the client implement and document formal procedures to ensure all required subrecipient monitoring activities are performed in accordance with Uniform Guidance, including obtaining and reviewing subrecipient audit reports and following up on any identified deficiencies. Views of Responsible Officials: Management concurs with the finding and will implement corrective action.