Finding Text
2025-02 Monitoring of Subrecipient (Material Weakness) ALN: 17.235 Federal Agency: U.S. Department of Health and Human Services Statement of Condition: During testing of subrecipient monitoring for the Senior Community Service Employment Program (ALN #17.235), it was noted that controls for subrecipient monitoring were not followed per the subaward agreement. Criteria: Organizations are required to maintain proper monitoring controls for all sub recipients receiving grant funding. In addition, there must be periodic reviews to ensure subrecipients are following grant guidelines and costs align with allowable expenditures. Cause: There was significant turnover within the accounting department of the Organization subsequent to year-end, and prior to the start of the audit. Therefore, sub-awardee monitoring procedures put in place were not followed. Effect: Because the Organization could not provide adequate monitoring for the sub recipient, a duplicate payment was made subsequent to year-end to the sub-awardee. Recommendation: We recommend that the Organization strengthen its monitoring of controls implemented to ensure that adequate support is maintained for all sub recipients receiving federal grants. The Organization should also consider enhancing its accounting policies and procedures manual so that in the event of staff turnover, new employees can understand and follow those policies and procedures. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the finding. The Organization's corrective action plan is included at the end of this report.