Finding Text
Finding 2024-005 Subaward Monitoring Federal Agencies: U.S. Department of State Federal Programs: International Programs to Support Democracy, Human Rights, and Labor Assistance Listing Numbers: 19.345 Pass-through Entity: None Award Identification Number and Year: S-LMAQM-20-GR-2099, S-LMAQM-20-GR-2100, SAQMIP- 22-GR-0005, S-AQMIP-23-GR-0343 Criteria or Specific Requirement: As noted in 2 CFR Part 200.332 all pass-through entities must evaluate each subrecipient’s risk of noncompliance. Pass-through entity monitoring must include reviewing financial and performance reports required by the pass-through entity, and following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. Condition: ICFJ was unable to provide documentation that a pre-award risk assessment had occurred for a subrecipient sampled during the audit. Cause: ICFJ experienced transition during the fiscal year and certain documents were unable to be located during the audit process. Effect or Potential Effect: Subrecipient monitoring is important to ensure proper stewardship and use of Federal funding. Questioned Costs: None Context: The program only included one significant subrecipient. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that ICFJ revisit their sub-recipient policies and ensure that all risk assessments are complete and approved prior to working with a subrecipient, all reporting includes indication of person submitting, date submitted, as well as person reviewing and approving and date. RCA audits, when applicable, should be obtained and reviewed annually. Documentation of this review (or documentation that the requirement does not apply) should be maintained as well.