Finding Text
Finding Reference Number: 2025-001 Federal Program: CFDA 93.959– Block Grants for Prevention and Treatment of Substance Abuse Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Lutheran Service Florida, Inc. Award Year: FY 2025 Criteria: Per 2 CFR §200.332(d), pass-through entities must monitor the activities of subrecipients to ensure that federal awards are used for authorized purposes and in compliance with laws, regulations, and the provisions of the subaward. Monitoring includes reviewing performance and financial reports required by the subaward agreement. Condition: The pass-through entity conducted appropriate monitoring activities for the subrecipient Bradford Community Coalition, Inc., including communication and oversight consistent with federal requirements. However, the subrecipient did not submit the required monitoring report by the established deadline. As of the audit report date, the report remained outstanding. Cause: While the pass-through entity fulfilled its monitoring responsibilities, the subrecipient failed to comply with reporting requirements in a timely manner. Effect: The absence of the monitoring report limits the pass-through entity’s ability to fully verify that the $39,406 in federal funds was used in accordance with applicable regulations. This may result in questioned costs due to insufficient documentation. Questioned Costs: $39,406 Recommendation: We recommend the pass-through entity continue its monitoring efforts and implement additional follow up procedures to ensure timely receipt of required reports. The entity should also consider revising subaward agreements to include stronger enforcement mechanisms for noncompliance. Views of Responsible Officials: The organization monitored the subrecipient in accordance with federal guidelines and has documented its oversight activities. We are working with the subrecipient to obtain the overdue report and have updated our procedures to escalate follow-up actions when reports are delayed.