Finding 366726 (2023-003)

Significant Deficiency Repeat Finding
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-02-09

AI Summary

  • Core Issue: Subrecipient agreements are missing key elements required for compliance, leading to a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with 2 CFR section 200.331(a) is not met, affecting the program's adherence to federal statutes and award conditions.
  • Recommended Follow-Up: Develop a standardized agreement template that includes all necessary elements for subawards to ensure compliance.

Finding Text

2023 – 003 (Previously 2022-002) Subrecipient Monitoring Federal Agency: US Department of Health and Human Services Federal Program Name: Maternal, Infant, Early Childhood Home Visiting Assistance Listing Number: 93.870 Federal Award Identification Number and Year: X10MC43597 - 9/1/2021-9/29/23 X10MC39703 - 9/30/2020-9/29/2022 X11MC41939 -05/01/21-09/30/23 6X11MC45479-01-02 - 12/31/21-9/30/24 Award Period: X10MC43597 - 9/1/2021-9/29/23 X10MC39703 - 9/30/2020-9/29/2022 X11MC41939 -05/01/21-09/30/23 6X11MC45479-01-02 - 12/31/21-9/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: The PTE must make the subrecipient aware of the award information required by 2 CFR section 200.331(a) sufficient for the PTE to comply with Federal statutes, regulations, and the terms and conditions of the award Condition: While the program has improved in its subrecipient monitoring efforts, the subaward agreements lack all required elements of a subaward. There were agreements included with all. Questioned costs: None Context: We tested 5 subrecipients; 4 agreements were incomplete Cause: Lack of knowledge of all required elements. Agreements contained some of the elements, but not all. Effect: Noncompliance with requirements of a subaward. Repeat Finding: Yes Recommendation: We recommend the program create an agreement template that contains the required elements of a subaward to distribute to its subreceipients Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Significant Deficiency in Internal Control over Compliance and Other Matters 2023-003 (Previously 2022-002) Subrecipient Monitoring U.S. Department of Health and Human Services Maternal, Infant, Early Childhood Home visiting Assistance Listing Numbers: 93.870 Recommendation: We recommend the program create an agreement template that contains the required elements of a subaward to distribute to its subrecipients. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ECECD takes this matter seriously. ECECD has taken immediate steps to resolve the omission of any required elements in our subrecipient agreements. ECECD wants to emphasize that other aspects of sub-recipient monitoring have been effectively corrected and performed. Additionally, the agreement template will be improved to include all required elements to ensure that they are contained within every subrecipient agreement going forward. To ensure a comprehensive resolution, the Chief Procurement Officer and the Chief Financial Officer (CFO) will develop and implement a subrecipient monitoring training for program staff to address and rectify this issue. Name(s) of the contact person(s) responsible for corrective action: Carmel Pacheco-Aragon, Chief Financial Officer; Marlene Acosta, Chief Procurement Officer. Planned completion date for corrective action plan: June 30, 2024

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 366723 2023-004
    Significant Deficiency
  • 366724 2023-005
    Significant Deficiency
  • 366725 2023-002
    Material Weakness Repeat
  • 943165 2023-004
    Significant Deficiency
  • 943166 2023-005
    Significant Deficiency
  • 943167 2023-002
    Material Weakness Repeat
  • 943168 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $41.64M
10.558 Child and Adult Care Food Program $36.79M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $31.53M
93.558 Temporary Assistance for Needy Families $18.77M
84.181A Special Education-Grants for Infants and Families $3.24M
84.425C Education Stabilization Fund $1.83M
10.560 State Administrative Expenses for Child Nutrition $1.32M
93.778 Medical Assistance Program $924,624
84.181X Family, Infant and Toddler with Disabilities-American Rescue Plan $773,661
93.434 Every Student Succeeds Act/preschool Development Grants $599,502
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $379,559
93.110 Maternal and Child Health Federal Consolidated Programs $229,841
93.600 Head Start $105,189
10.559 Summer Food Service Program for Children $54,405