Finding 509617 (2023-002)

-
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-11-20

AI Summary

  • Core Issue: Subaward agreements lacked necessary federal provisions as required by 2 CFR 200.332.
  • Impacted Requirements: The Alliance failed to comply with federal regulations regarding subrecipient communication and responsibilities.
  • Recommended Follow-Up: Update subaward agreements to include all required federal provisions and enhance monitoring controls.

Finding Text

Federal Program Information: Education Stabilization Fund (ALN 84.425U) Criteria: The Code of Federal Regulations (CFR) Section 200.332 requires the pass-through entity (PTE) to clearly identify to the subrecipient: (1) 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)(1); (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 Massachusetts Alliance of Boys & Girls Clubs, Inc. Schedule of Findings and Questioned Costs For the Year Ended December 31, 2023 26 200.332(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 subaward agreements did not include the required federal provisions. Cause: The Alliance was unaware of the requirement to include the required federal provisions in the subaward agreements. Effect or Potential Effect: The Alliance was not in compliance with the subrecipient requirements outlined in the agreement and in 2CFR200.332. Recommendation: We recommend that the Alliance update subaward agreements to include all federal provisions required to be communicated by the grant and also 2 CFR 200.332. Views of Responsible Officials: The Alliance will implement internal controls and administrative oversight to ensure subrecipient monitoring requirements are being followed and adequately documented.

Corrective Action Plan

The Alliance will implement internal controls and administrative oversight to ensure subrecipient monitoring requirements are being followed and adequately documented.

Categories

Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $2.99M
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $42,873