Finding Text
Criteria:
Internal Control: Per 2 CFR section 200.303(a), 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Compliance: Monitoring the activities of the subrecipients as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f)).
Condition: the County did not provide documentation to support subrecipient monitoring for all subawards issued during fiscal year 2022.
Cause: the County’s Finance Office was unaware of subrecipient monitoring requirements for all federally funded subawards of $25,000 or more.
Questioned Costs: None
Effect: Federal funds may be used for purposes that are not in accordance with the terms of the grant agreement.
Recommendation: We recommend the County review and enhance internal controls and procedures to ensure that all subrecipients are monitored and reviewed.
Identification of Repeat Finding: This is a first year finding.
Views of Responsible Officials: management agrees with the finding.