Finding Text
Department of Health and Human Services Iowa Department of Health and Human Services Public Health Emergency Preparedness 93.069 – PUHE-EPR-25-003 for 2025 Subrecipient Monitoring Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria – 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Subrecipient monitoring requirements are contained in 2 CFR 200.331 through 2 CFR 200.333 and include requirements to identify the award and applicable requirements to the subrecipient and monitor the activities of the subrecipient. Condition – The County did not formally communicate the required information to the subrecipient. No subrecipient agreement was executed. In addition, no monitoring activities were documented. Cause – The County did not have an internal control process in place to ensure subrecipient monitoring requirements were met. Effect – Without the proper communication of applicable requirements and monitoring of the subrecipient, there is a possibility that federal statutes, regulations, and the terms and conditions of the federal award, were not complied with. Questioned Costs – None reported. Context – $754,170 was passed through to one subrecipient during the year ended June 30, 2025. Repeat Finding from Prior Years – No Recommendation – We recommend the County implement a control process which includes the applicable subrecipient monitoring requirements. Views of Responsible Officials – Clinton County is working with Genesis Health System on implementing a subrecipient agreement and will put a control process in place to monitor.