Finding Text
Finding 2023-001 – Reporting
Identification of federal program: Assistance Listing No. 93.558 – Temporary Assistance for Needy Families.
Criteria or specific requirement: Section 200.332 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides the requirements for pass-through entities. A pass-through entity (PTE) must clearly identify to the subrecipient the award as a subaward at the time of subaward (or subsequent subaward modification) by providing the information described in 2 CFR section 200.332(a)(2); all requirements imposed by the PTE on the subrecipient so that the federal award is used in accordance with federal statutes, regulations, and the terms and conditions of the award (2 CFR section 200.331(a)(2)); and (3) any additional requirements that the PTE imposes on the subrecipient in order for the PTE to meet its own responsibility for the federal award (e.g., financial, performance, and special reports) (2 CFR section 200.332(a)(3)).
Condition: The Organization was not able to provide executed agreements with its subrecipients covering the period under audit that meet the requirements of Section 200.332 of the Uniform Guidance.
Cause: Management indicated that the existing subaward agreements, which do not cover the year ended December 31, 2023, were not updated due to an oversight attributed to personnel vacancies.
Effect or potential effect: Noncompliance with Section 200.332 of the Uniform Guidance could result in misunderstanding in program compliance requirements.
Questioned cost: not applicable.
Context: The Organization was not able to provide executed agreements that cover the audit period for the two subawards made under this program.
Recommendation: We recommend that the Organization update and execute agreements with its subrecipients that contains all the required elements of Section 200.332 of the Uniform Guidance.
Views of responsible officials: The Organization concurs with this finding. See page 40 for corrective action plan.