Finding Text
Finding: 2025-003: Documentation of Subrecipient Monitoring Condition: The Organization did not maintain documentation to demonstrate compliance with the requirements for subrecipient monitoring in accordance with 2 CFR 200, Subpart D for the year ended August 31, 2025. Criteria: The Organization is required to maintain documentation to demonstrate compliance with the requirements for subrecipient monitoring in accordance with 2 CFR 200, Subpart D (2 CFR section 200.332). Cause: Management was not aware of the requirement under 2 CFR 200, Subpart D requiring the Organization to maintain documentation to demonstrate compliance with the requirements for subrecipient monitoring. Effect: While the Organization did not maintain documentation to demonstrate compliance with the requirements for subrecipient monitoring in accordance with 2 CFR 200, Subpart D for the year ended August 31, 2025, the Organization provided a detailed description of the ongoing direct contact with the subrecipient to monitor its activities and compliance with regulations and terms of the prime and subawards. Recommendation: We recommend that management of the Organization adopt written policies procedures for maintaining documentation to demonstrate compliance with the requirements for subrecipient monitoring in accordance with 2 CFR 200, Subpart D. Response: Management accepts the recommendation and is working to develop an updated financial policies and procedures manual that provides for maintaining documentation to demonstrate compliance with the requirements for subrecipient monitoring to meet Federal compliance requirements.