Finding 36373 (2022-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-19

AI Summary

  • Core Issue: The Foundation failed to obtain and review annual audit reports for three out of five subrecipients, violating compliance requirements.
  • Impacted Requirements: This finding relates to 2 CFR 200.332(f), which mandates verification of subrecipients' audit compliance.
  • Recommended Follow-Up: The Foundation should pursue training and thoroughly review federal requirements to improve subrecipient monitoring practices.

Finding Text

2022 ? 003 Federal Agency: Department of Health and Human Services Federal Program Name: Immunization Research, Demonstration, Public Information and Education, Training and Clinical Skills Improvement Projects Assistance Listing Number: 93.185 Pass-Through Agency: Michigan State University Award Period: July 31, 2021 ? July 30, 2023 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 2 CFR 200.332(f) requires that the pass through entity verify that subrecipients expected to be audited as required by 2 CFR Part 200, Subpart F, met this requirement. This verification may be performed as part of the required monitoring under 2 CFR section 200.332(d)(2) to ensure that the subrecipient takes timely and appropriate action on deficiencies detected though audits. Condition: Annual audit reports of subrecipients were not obtained or reviewed by the Foundation. Questioned costs: None Context: Three of the five subrecipients tested were required to have an annual audit report, but these were not obtained or reviewed by the Foundation. Cause: Management was not aware of this requirement. Effect: The subrecipient may have deficiencies detected though audits that could impact monitoring by the Foundation. Recommendation: We recommend the Foundation attend training, review federal requirements, and fully understand the requirements of subrecipient monitoring. Views of responsible officials: There is no disagreement with the audit finding. See the Corrective Action Plan for further details.

Corrective Action Plan

Department of Health and Human Services 2022-003 Immunization Research, Demonstration, Public Information and Education, Training and Clinical Skills Improvement Projects - Assistance Listing No. 93.185 Recommendation: We recommend the Foundation attend training, review federal requirements, and fully understand the requirements over indirect costs Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: CFGF will engage with external firm to assist with fully understanding requirements related to indirect costs and federal requirements. CFGF will also work with external firm to assist in the identification and selection of additional training opportunities for staff who work on federal programs. Name(s) of the contact person(s) responsible for corrective action: Brett Hunkins Planned completion date for corrective action plan: December 31, 2023 If the Department of Health and Human Services has questions regarding this plan, please call Brett Hunkins at 810-767-8270.

Categories

Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 36372 2022-002
    Material Weakness
  • 612814 2022-002
    Material Weakness
  • 612815 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.185 Immunization Research, Demonstration, Public Information and Education_training and Clinical Skills Improvement Projects $883,309