Finding Text
Subreceipient Monitoring ALN Number and Name: 93.243 Substance Abuse and Mental Health Services-Projects of Reginal and National Significance Award Number and Year: 1H79SM088601-01, 09/30/2023 - 09/29/2024; H79SM088601-01 M001, 09/30/2024 - 09/29/2025 Federal Agency: U.S. Department of Health and Human Services Condition: The Organization did not monitor subrecipient activities for program requirements and audit requirements at least annually. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Subpart D Subrecipient Monitoring, Section 332 (e) Requirements for Pass-through Entities states that a pass-through entity must monitor the activities of a subrecipient as necessary to ensure that the subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward. The pass-through entity is responsible for monitoring the overall performance of a subrecipient to ensure that the goals and objectives of the subaward are achieved. In monitoring a subrecipient, a pass-through entity must: (1) Review financial and performance reports. (2) Ensure that the subrecipient takes corrective action on all significant developments that negatively affect the subaward. Significant developments include Single Audit findings related to the subaward, other audit findings, site visits, and written notifications from a subrecipient of adverse conditions which will impact their ability to meet the milestones or the objectives of a subaward. (3) Resolve audit findings specifically related to the subaward and issue a management decision for audit findings pertaining to the federal award provided to the subrecipient. (4) Verify that a subrecipient is audited as required by 2 CFR part 200, Subpart F. Cause: The Organization does not have written policies and procedures for monitoring subrecipients. Effect: The subrecipients may not be operating the program in accordance with the terms and conditions of the subaward which could lead to the failure of the subrecipients to meet the goals and objectives of the subaward, thus leading to questioned costs. Recommendation: Establish written policies and procedures for monitoring subrecipients to ensure they are complying with the terms and conditions of the subaward. Questioned Cost: Not determinable. Views of Responsible Officials and Planned Corrective Action: The Organization agrees with the finding and will establish written policies and procedures for monitoring subrecipients to ensure they are complying with the terms and conditions of the subaward.