Finding Text
Material weakness in internal controls over compliance and instances of noncompliance related to subrecipient monitoring. Federal Agency: Department of Treasury Program Title: Coronavirus State and Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Award Numbers: HCS-23-AR-2110-048, SLFRP0194 Project Period: November 1, 2021 - March 31, 2025 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Subpart D requires a recipient to adopt compliance policies to ensure sub-recipients comply with requirements under the award, and evaluate each subrecipient’s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of such agreements for the purposes of determining appropriate subrecipient monitoring. Condition/Context for Evaluation During the audit for the year ending June 30, 2025, the Agency did not have a subrecipient monitoring policy and did not conduct monitoring over subrecipients awarded under the program. Cause The Agency did not have a subrecipient monitoring policy that included all the required provisions outlined in 2 CFR 200.332. Effect or Potential Effect The Agency did not fully comply with the requirements regarding subrecipient monitoring. Questioned Costs Not applicable as finding relates to a policy not being in place. Repeat Finding Yes, see finding 2024-002. Recommendation We recommend that the Agency develop a subrecipient monitoring policy that meets the required provisions outlined in 2 CFR 200.332 and ensure a risk assessment is performed over all subrecipients. Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying management corrective action.