Finding Text
Finding #SA2024-002: Subrecipient Monitoring Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Pass Through Entity: County of San Mateo Federal Award Identification Number: SFLRP0201 Criteria: 2 C.F.R. Part 200.332 of the Uniform Guidance requires that the City evaluate the risk of noncompliance for its subrecipients and perform monitoring procedures based upon identified risks. Subrecipient monitoring provides reasonable assurance that the subrecipient used the subaward for authorized purposes in compliance with federal statutes, regulations, and the terms and conditions of the subaward. In addition, 2 C.F.R. Part 200.510 (b)(4) of the Uniform Guidance requires that the schedule of expenditures of federal awards include the total amount provided to subrecipients from each Federal program. Condition: The City had one subrecipient under the COVID-19 – Coronavirus State and Local Fiscal Recovery Fund grant, but we understand the City does not have policies and procedures related to the monitoring of subrecipients. In fiscal year 2025, City staff did not obtain a copy of the subrecipient’s most recent single audit report and did not conduct any other monitoring of the subrecipient. Effect: The City is not in compliance with the subrecipient monitoring and reporting requirements of the Uniform Guidance. Cause: We understand that the City’s program manager in charge of this program has left the City and did not perform monitoring procedures. Identification as a Repeat Finding: Yes, since 2024 (Finding #SA2024-002) Recommendation: The City should develop policies and procedures related to subrecipient monitoring in compliance with the provisions of 2 C.F.R. Part 200.332 and reporting in compliance with the provisions of 2 C.F.R. Part 200.510 (b)(4). View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.