Finding Text
2022-005 Significant Deficiency in Compliance and Internal Control over Compliance ? Subrecipient Monitoring Identification of federal programs: 14.862 Indian Community Development Block Grant 21.027 Coronavirus State and Local Fiscal Recover Funds 93.047 Special Program for the Aging, Title VI, Part A, Grants to Indian Tribes, x Part B, Grants to Native Hawaiians 93.054 Special Program for the Aging, Title VI, Part C, Grants to Indian Tribes and x Native Hawaiians Criteria or specific requirements: There are various federal pass-through programs that the Association administers. When the Association receives these grants and passes them through to a subrecipient, the Association is required to complete subrecipient monitoring procedures. Condition: The Association received reports from the subrecipients however the activity was never recorded on the financial reports to the Council or in their annual financial statement. Cause: Management continues to understand the reporting requirements and obligations associated with subrecipient monitoring. Effect or potential effect: By not completing the appropriate subrecipient monitoring procedures, the Association is not complying with federal program requirements. Questioned Costs: None Context: Although these programs are not major federal programs, in reviewing the summary schedule of prior audit findings with management, it did not appear that corrective action for subrecipient monitoring had been implemented. Identification of Repeat Finding: 2021-004 Recommendation: I recommend that the Association institute procedures to properly monitor subrecipients. The procedures performed should be documented and maintained as part of the grant recordkeeping. Views of Responsible Officials: See Corrective Action Plan