Finding Text
Finding 2025-002 Subrecipient Monitoring Finding Type Other matters compliance finding and significant deficiency in internal control over compliance. Agency U.S. Department of Health and Human Services Assistance Listing Numbers 93.421, Strengthening Public Health Systems and Services through National Partnerships to Improve and Protect the Nation’s Health 93.078, Strengthening Emergency Care Delivery in the United States Healthcare System through Health Information and Promotion Criteria Section 200.332(c) of the Uniform Guidance requires recipients of federal awards to evaluate each subrecipient’s risk of noncompliance for the purpose of determining the appropriate subrecipient monitoring related to the subaward. One of the risk assessment procedures includes considering whether or not a subrecipient receives a Single audit and the extent to which the same or similar subawards have been audited as a major program. In addition, Section 200.332(e)(2) of the Uniform Guidance requires pass-through entities to ensure that subrecipients take corrective action on all significant developments that negatively affect the subaward, including Single Audit findings related to the subaward. Condition and Context During our audit procedures, we selected four subrecipients for subrecipient monitoring procedures testing. We noted that during the year ended September 30, 2025, ASTHO had not asked these subrecipients if they had Single Audits. Likewise, during the year ended September 30, 2025, ASTHO had not obtained copies of the subrecipients’ most recent Single Audits. However, ASTHO performed other subrecipient monitoring procedures such as checking for debarment, reviewing documentation for reimbursement requests, and obtaining progress reports from the subrecipients. Cause ASTHO did not complete its procedures to annually obtain and review the required information related to its subrecipients’ Single Audits. Effect ASTHO was not in compliance with the subrecipient monitoring requirements of the Uniform Guidance. However, the other subrecipient monitoring procedures performed by ASTHO served to mitigate the risk of a material noncompliance related to the major programs. Repeat Finding No. Recommendation We recommend that ASTHO implement a procedure to allow for the consistent ability to obtain and review the required Single Audit information from its subrecipients on an annual basis. Views of Responsible Officials and Planned Corrective Action See attached corrective action plan. Questioned Costs None.