Finding 375418 (2023-003)

2023-003: U.S. Department of Health and Human Services, Division of Child and Family Services System of Care for Youth with Serious Emotional Disorders, 93.104 Subrecipient Monitoring Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 93.104 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.332 requires that: Pass-through entities ensure every subaward includes certain information at the time of the subaward and the assistance listing number is communicated at the time of disbursement to subrecipients. Condition: Subawards did not contain all the required information and assistance listing numbers were not communicated at disbursement. Cause: Adequate internal controls were not in place to ensure compliance with subrecipient monitoring requirements for the following agencies: • Lyon County Human Services Effect: Noncompliance at the subrecipient level may occur and not be detected by the State. Questioned Costs: None reported. Context/sampling: The entire population of one subrecipient was selected for testing. Report Finding from Prior Year(s): No. Recommendation: We recommend the State agencies listed above enhance internal controls to ensure compliance with subrecipient monitoring requirements. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.