Finding Text
2022-003 Federal Agency: U.S. Department of Education Federal Program Title: Supporting Effective Education Development Assistance Listing Number: 84.423a Award Period: October 1, 2020 ? September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of subrecipient monitoring. The Center should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Center did not have adequate internal controls designed to ensure all appropriate information was obtained/retained from subrecipients prior to entering into a contract, including obtaining/retaining DUNS numbers. Questioned costs: None Context: During our testing, it was noted that the Center was not obtaining DUNS numbers prior to entering into a contract with a subrecipient. Cause: The Center was unaware of the requirement to obtain DUNS numbers. Effect: The center is not compliant with program requirements. Repeat Finding: Repeat finding, however it is noted that due to timing of release of audit reports, all occurrences of lack of internal controls over compliance requirements occurred prior to the Center being informed of this issue as part of the prior year audit. Recommendation: We recommend the Center design controls to put in place an adequate review process to ensure all required documentation is obtained/retained from subrecipients prior to entering into a contract. Views of Responsible Officials: There is no disagreement with the audit finding.