Finding Text
45 CFR § 75.352(f) states a pass-through entity must verify that every subrecipient is audited as required by subpart F of this part. Subpart F details the Single Audit requirements for non-Federal entities expending more than $750,000 in Federal awards in a fiscal year. The Subgrant Agreements between the Ohio Department of Job and Family Services (ODJFS) and the Educational Service Center of Central Ohio (Subgrantee) for the Refugee Support Services (RSI), Afghan Refugee School Impact-Support to Schools, and Early RSI programs state the Subgrantee will ensure that subrecipients expending $750,000.00 or more in Federal awards during the subrecipient’s fiscal year have met the audit requirements of this Agreement for that fiscal year. During Fiscal Year 2025, the Center did not have the proper internal controls in place to help ensure that all subrecipients of the ALN 93.566 program were audited as required by subpart F. We noted 1 out of 2 (50%) of the Center's ALN 93.566 program subrecipients did not receive a Single Audit for fiscal year 2025 and has not had a Single Audit since 2018. The failure to ensure that program subrecipients receive Single Audits could result in subrecipients’ noncompliance and questioned costs going undetected and additional risks for the Center as the pass-through entity. The Center should establish internal control procedures to help ensure all subrecipients are audited according to subpart F, and that management review the subrecipients' Single Audit reports for findings and results that could impact the Center's operations and decision-making.