Finding Text
Criteria: The Uniform Guidance requires the pass-through entity to monitor subrecipients' use of federal awards. Per the Compliance Supplement, Section M, Subrecipient Monitoring, the Organization must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals. Because the pass-through entity is held accountable for federal awards administered by its subrecipients, the pass-through entity should establish an appropriate subrecipient monitoring process and to evaluate what, if any, additional monitoring activities may be necessary to ensure the subrecipients' compliance.
Condition: The Organization has expenditures of $231,716 to subrecipients. The Organization pays subrecipient annually based on contract. The Organization does not monitor subrecipients' use of federal awards. No invoices are received by the Organization and expenditures are not reviewed to ensure they are allowable per grant budget and federal requirements. Cause: There is inadequate administrative oversight with respect to subrecipient monitoring. Effect: The Organization was not in compliance with subrecipient monitoring requirements. Recommendation: We recommend that the Organization enhance its policies and procedures over subrecipient monitoring. Proposed Completion Date: April 1, 2024