Finding Text
Finding 2022-001 Lack of Internal Control and Noncompliance over Subrecipient Monitoring Federal Agency: U.S. Department of Health and Human Services passed through the State of Alaska, Department of Health and Social Services Federal Program: COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases ALN: 93.323 Award Number: C0621-570-EE Award Year: 2021 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: The Borough passed these funds through to two local healthcare organizations. The Borough?s agreement with the subrecipients required monthly reports and invoices be supplied to the Borough. Condition and Context: During our compliance testing of 3 out of a possible 18 monthly reports that were remitted from the subrecipients to the Borough during fiscal year 2022, it was determined that one of the subrecipients was not reporting on a monthly basis as required in the subrecipient agreement. Cause: Lack of internal controls over subrecipient monitoring. Effect: Failure to properly monitor subrecipients could result in a number of unintended consequences, from unallowed costs being incurred or report deadlines being missed due to lack of adequate information from the subrecipients. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding and we consider this an isolated instance. Recommendation: We recommend that management enforces subrecipient agreements and follows-up anytime deadlines are missed to ensure compliance with grant requirements. Management?s Response: Management concurs with this finding, see corrective action plan.