Finding 1225506 (2024-001)

45 CFR § 75.352(f) states, in part, 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 Franklin County Department of Job and Family Services (the County) (Subgrantee) and between the County and US Together (Subrecipient) for the Refugee Support Services (RSS) program, state the Subgrantee will ensure that subrecipients expending $750,000 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 2024, the County 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 4 (25%) of the ALN 93.566 program subrecipients did not receive a Single Audit for fiscal year 2024 and has not had a Single Audit since 2018. Failure to ensure program subrecipients receive Single Audits could result in subrecipients’ noncompliance, questioned costs going undetected, and additional risks for the County as the passthrough entity. The County 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 or results that could impact the operations and decision-making of the County. Officials Response: The State Auditor conducted a site visit on March 24, 2026, during which it was identified that one of our subrecipients had not completed an audit since 2018. Subsequently, a risk assessment was conducted for the subrecipient, and the failure to complete the required annual audits was documented as a finding. A Corrective Improvement Plan (CIP) has since been submitted, and the subrecipient is actively working to complete the outstanding annual audits for fiscal years 2019 through 2025. Additionally, the current risk assessment process is being revised to place greater emphasis on the completion of required annual audits for the preceding year. If an audit has not been completed when applicable, the subrecipient will be classified as high risk. As a result, the subrecipient will be subject to an annual monitoring review conducted by the monitoring team.