Finding 22247 (2022-002)

-
Requirement
M
Questioned Costs
-
Year
2022
Accepted
2023-06-29

AI Summary

  • Core Issue: The organization failed to conduct required on-site monitoring of SkillUp subrecipients during the fiscal year.
  • Impacted Requirements: This violates the Uniform Guidance at 2 CFR 200.332(d), which mandates monitoring to ensure compliance with federal statutes and subaward terms.
  • Recommended Follow-Up: Implement internal controls to ensure on-site visits or alternative monitoring procedures are consistently performed for subrecipient compliance.

Finding Text

2022-002: Subrecipient Monitoring Federal Grantor: U.S. Department of Health and Human Services Pass-Through Grantor: Missouri Department of Social Services Federal Assistance Listing Number: 93.558 Program Title: Temporary Assistance for Needy Families Pass-through Entity Identifying Number: CS200821001 Award Year: 2021-2022; 2022-2023 Questioned Costs: None Criteria: The Uniform Guidance at 2 CFR 200.332(d) requires non-federal entities providing federal funds to subrecipients to ?Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward.? As part of the organization?s monitoring procedures, on-site monitoring visits of each subrecipients SkillUp program performance are to be conducted each year to ensure compliance with the state of Missouri SkillUp Provider Handbook. Condition: The organization did not conduct on-site monitoring of SkillUp subrecipients during the fiscal year. Cause: The organization had turnover in the Executive Director and program management positions during the fiscal year. The monitoring is typically performed in the summer but the SkillUp Program Manager left in the summer of 2022 prior to conducting the monitoring, and the process of finding and training a replacement took some time. Effect: The lack of on-site monitoring or the performance of alternative procedures inhibits the organizations ability to ensure that subrecipients are complying with the requirements of the federal program. Recommendation: We recommend that the organization implement internal controls over the subrecipient monitoring process to ensure that on-site visits or adequate alternative procedures are in place to ensure subrecipient compliance with the requirements of federal programs.

Corrective Action Plan

Finding Reference Number: 2022-002 Federal Agency: U.S. Department of Health and Senior Services Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Responsible Official: Megan Bania, Executive Director Views of Responsible Individuals: The loss of the executive director in January 2022 and the poor handoff to the interim executive director Brian Valentine, and his resignation in March 2023, left SkillUp program manager with insufficient oversight and management support. The failure of the Director of Finance to assist with creating updated financial monitoring protocols and lingering concerns about traveling during COVID resulted in the failure to perform financial monitoring. The former program manager did follow spending and provided programmatic monitoring and support to subrecipients. She resigned from MCAN in July 2022. Megan Bania is the new executive director and has worked with the new program manager and the accounting team to create in person/onsite financial monitoring protocols and will ensure that financial monitoring is conducted in FY 2023.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 22246 2022-001
    Significant Deficiency
  • 598688 2022-001
    Significant Deficiency
  • 598689 2022-002
    -

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $1.38M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $298,454
93.569 Community Services Block Grant $8,535