Finding Text
Agency: U.S. Department of Education and U.S. Department of the Treasury Federal Assistance Listing Number: 84.215N Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects; 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: 2025 Pass-Through Entity: State of Connecticut Judicial Branch Office, City of Hartford, State of Connecticut Department of Public Health, State of Connecticut Department of Social Services, State of Connecticut Department of Mental Health and Addiction Services, State of Connecticut Department of Children and Families, State of Connecticut Department of Housing Criteria: In accordance with 2 CFR § 200.332, pass-through entities are required to monitor the activities of their subrecipients as necessary to ensure that subawards are used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward, and that subaward performance goals are achieved. For subrecipients subject to the Single Audit requirements, the pass-through entity is also responsible for verifying that the subrecipient is audited as required by 2 CFR Part 200, reviewing applicable audit results, and taking appropriate follow-up action on audit findings related to the federal awards provided by the pass-through entity. Condition and Context: During our testing of the Medical Center's subrecipient monitoring activities, we tested 20 subrecipients and noted that the Medical Center did not timely obtain and review the applicable Single Audit reports of the 20 subrecipients. In addition, the Medical Center did not have a process in place to determine whether the subrecipients' Single Audit reports contained audit findings related to the Federal awards provided by the Medical Center and, if applicable, to document appropriate follow-up on such findings and related corrective actions. The sample was not statistically valid. Questioned Costs: None reported. Cause: The Medical Center not having formal policies and procedures in place for monitoring subrecipient compliance with applicable Single Audit requirements, including procedures for obtaining and reviewing Single Audit reports, identifying findings applicable to federal awards passed through by the Medical Center, and documenting the resolution and follow-up of applicable findings. Effect: The lack of timely review and follow-up of subrecipient Single Audit reports increases the risk that noncompliance or audit findings related to federal awards passed through by the Medical Center may not be identified and addressed timely. Recommendation: We recommend that management establish and implement procedures to timely obtain and review subrecipient Single Audit reports, identify findings related to Federal awards passed through by the Medical Center, and document appropriate follow-up and corrective actions, as applicable.