Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: The Department of Health and Human Services/Centers for Disease Control and Prevention
Assistance Listing Number: 93.323
Federal Award Identification Number and Year: NU50CK000515 - 2021
Pass-Through Agency: State of Washington Department of Health
Pass-Through Number: CBO28488-0
Award Period: July 1, 2023 through July 31, 2024
Type of Finding:
• Material Weakness in Internal Control over Compliance – Subrecipient Monitoring
• Other Matters
Criteria or specific requirement: CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.303 specifies that a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition: The Organization did not have policies and procedures in place to ensure all the requirements of subrecipient monitoring were being performed.
Questioned costs: None.
Context: Of the five subrecipients selected for testing (there were seven in the population), we noted that none of them had proper monitoring in place.
Cause: Policies and procedures were not in place to provide adequate subrecipient monitoring.
Effect: The Organization could pass through federal funding to subrecipients who are not responsible or capable recipients of the funds. Funding could be used by the subrecipients in ways that are incompatible with program goals and compliance requirements.
Recommendation: We recommend that the Organization implements policies and procedures to perform subrecipient monitoring and that monitoring is formally documented and approved.
Views of responsible officials: There is no disagreement with the audit finding.