Finding Text
Criteria: Under the Uniform Guidance, pass-through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes specific information identifying the federal award at the time of the subaward (2 CFR 200.332(a)). Additionally, entities receiving federal awards must establish and maintain effective internal control over federal awards that provides reasonable assurance that the entity is managing the awards in compliance with federal statutes, regulations, and the terms and conditions of the awards (2 CFR 200.303(a)). Condition: Subaward agreements did not include certain required information such as the name and assistance listing number of the original federal award. Questioned Costs: Unknown Cause: Staff members at Seattle Good Business Network were not aware of the requirements for amounts passed through to subrecipients. Context: Seattle Good Business Network has not previously received significant federal awards and did not have adequate internal controls established to ensure all required communications were made to subrecipients. Effect: Failure to notify subrecipients of federal award information may result in subrecipients not properly administering the Coronavirus State and Local Fiscal Recovery Funds program in accordance with statutes, regulations, and the terms and conditions of the award. Recommendation: We recommend that Seattle Good Business Network updates its standard subaward agreements to include all required federal award information and implements policies and procedures to ensure staff are informed of all federal award compliance requirements. Views of Responsible Officials: There is no disagreement with the finding. See the attached unaudited corrective action plan.