Finding Text
Subrecipient Monitoring Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Center for Disease Control and Prevention: Injury Prevention and Control Research and Statement and Community Based Programs. Assistance Listing Number: 93.136 Pass-Through Agencies: N/A Pass-Through Numbers: N/A Award Periods: Various: September 30, 2022 through September 29, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to monitor subrecipient activities. This ensures only allowable costs are charged to federal programs. Under subrecipient monitoring, an organization in receipt of federal funding is required to have a system of controls in place to monitor subrecipients. 2 CFR Part 200 states that sub grantors should ensure subgrantees follow the Uniform Guidance. Condition: In testing 2 subrecipients, we noted the Organization did not have proper documented monitoring procedures in place, including review of the subrecipients audit reports. Questioned Costs: None. Context: Subrecipients are not being properly monitored. Cause: Policies and procedures had not been put into place to document proper monitoring of subrecipients. Effect: Unallowable costs may be charged to the federal programs. Repeat Finding: This is a not repeat finding. Recommendation: Policies and procedures over subrecipients should include properly monitoring of the subrecipient throughout the subcontract period. In addition, audit reports should be reviewed and evaluated annually. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: PCA America will add subrecipient monitoring policies and procedures to the organization’s grants compliance manual. These policies and procedures will be in compliance with Uniform Guidance to ensure proper annual monitoring. Name(s) of the contact person(s) responsible for corrective action: Dr. Bart Klika, Chief Research Officer Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by August 31, 2026.