Finding Text
Finding 2022-004 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 2201SDRSSS, 10/01/2021 ? 9/30/2024 Refugee and Entrant Assistance ? State Administered Programs Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR 200.322 identifies the requirements for all pass-through entities which include the following: A. Evaluate each subrecipient?s risk of noncompliance with federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring, B. Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with federal statues, regulations, and the terms and conditions of the subaward; and that the subaward performance goals are achieved. C. Verify that every subrecipient is audited as required by Subpart F ? Audit Requirements. Condition: The Organization could not provide support to substantiate a secondary review was completed over the evaluation of subrecipient?s risk of noncompliance. Cause: There was no documentation retained to support a secondary review was completed over the evaluation of subrecipient?s risk of noncompliance. Effect: Inadequate controls over this area of compliance including not retaining supporting documentation may make it difficult for the Organization to demonstrate the program is in compliance with laws, regulations, and other compliance requirements. Questioned Costs: None reported Context/Sampling: Only one subrecipient who received funds through this program was tested. Repeat Finding from Prior Years: Yes, prior year finding 2021-003 Recommendation: We recommend that management review the procedures and control processes over subrecipient monitoring to ensure a secondary review is formally documented related to the evaluation of subrecipient?s risk on noncompliance. View of Responsible Officials: Management is in agreement.