Finding Text
Criteria: In accordance with the requirements of the Program outlined in CFDA 93.569, when a pass-through entity provides federal awards to a subrecipient, the pass through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with federal statutes, regulations, and the terms and conditions of the subaward.
Condition: The Agency did not monitor their processes for participant eligibility with CSBG criteria.
Questioned Costs: N/A
Effect: The Agency's risk for approving ineligible funding to their subrecipient for individual assistance is increased. Cause: The Agency does not historically passthrough CSBG funds to third parties and was required to pass these funds through based on the contract requirements. While they were aware of the requirements to perform subrecipient monitoring, they did not perform those procedures on the subrecipients internal controls over eligibility determination.
Recommendation: The Agency should implement procedures to ensure that subrecipient monitoring procedures are implemented for all compliance requirements and perform these procedures on a routine basis.
Management's Response: See the Management's Response to Findings section for management' s detailed response to item 2022-005.