Finding Text
Finding 2025-004: Subrecipient Monitoring Requirements Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 Federal Agency: Department of the Treasury Pass-through Agencies: City of Pittsburgh and the Commonwealth of Pennsylvania, Department of Community and Economic Development Condition: During 2024, the URA passed through federal funds to a subrecipient in excess of the Single Audit threshold of $750,000. During 2025, the URA did not have adequate controls in place to verify that subrecipients expected to be audited as required by 2 CFR Part 200, Subpart F, met this requirement. Criteria: In accordance with 2 CFR Part 200.303, a non-Federal entity must establish and maintain effective internal control over Federal awards that provide reasonable assurance that the non-Federal entity manages the Federal award in accordance with Federal statutes, regulations, and the terms and conditions of the Federal award. The pass-through entity must also verify that a subrecipient is audited as required by 2 CFR Part 200, Subpart F. Cause: The URA did not have an effective, documented process to identify subrecipients that met the single audit threshold, track the status and due date of required audits, and follow up with subrecipients until the required audit was completed and obtained. Effect: The URA was unable to demonstrate that a subrecipient complied with applicable single audit requirements. In addition, the URA may not identify and address deficiencies, questioned costs, or corrective-action requirements related to the subrecipient’s use of federal funds in a timely manner. Questioned Costs: None Identification as a Repeat Finding: This is not a repeat finding. Recommendation: The URA should establish and implement a documented subrecipient audit-monitoring process that includes tracking subrecipients who were provided funding over the single audit threshold to reach out and determine if they spent over the single audit threshold. If the subrecipient had federal expenditures over the single audit threshold, the URA should track the audit status and follow up on outstanding audits until the audit report, or other appropriate documentation of compliance, is obtained, document the review of audit results and evaluate whether findings require additional monitoring, corrective action, a management decision, or adjustments to the URA’s records, and escalate unresolved audit-status issues to responsible management and impose additional monitoring or other appropriate enforcement measures when necessary. Corrective Action: Management agrees with this finding; see separate Corrective Action Plan.