Finding 519044 (2023-006)

Significant Deficiency Repeat Finding
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2025-01-13

AI Summary

  • Core Issue: The Regional Office of Education No. 39 lacks adequate controls for monitoring subrecipients, failing to verify required audits and lacking documented procedures.
  • Impacted Requirements: Non-compliance with federal regulations (2 CFR § 200.332 and § 200.303) regarding subrecipient audits and monitoring could lead to improper administration of federal programs.
  • Recommended Follow-Up: Establish and implement comprehensive procedures for subrecipient monitoring, ensuring both compliance and proper documentation of activities.

Finding Text

CRITERIA/SPECIFIC REQUIREMENT: The Code of Federal Regulations (Code) (2 CFR § 200.332 (g)) requires the Regional Office of Education No. 39 to verify every subrecipient is audited as required by Subpart F when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in 2 CFR § 200.501. The Code (2 CFR § 200.332 (e)) requires the Regional Office of Education No. 39 to monitor the activities of the subrecipient to ensure the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward, and that subaward performance goals are achieved. The Code (2 CFR §200.303 (a)) requires the Regional Office of Education No. 39 to establish and maintain effective internal control over the federal award to provide reasonable assurance the Regional Office of Education No. 39 is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls should include procedures over subrecipient monitoring. CONDITION: The Regional Office of Education No. 39 did not have adequate controls over subrecipient monitoring in compliance with the Code. CONTEXT: During our testing of nine subrecipients, we noted the following:  The Regional Office of Education No. 39 did not verify whether subrecipients were required to be audited.  The Regional Office of Education No. 39 did not have written policies and procedures for subrecipient monitoring and could not provide evidence the Regional Office of Education No. 39 monitored its subrecipients during the audit period. EFFECT: Lack of controls over subrecipient monitoring may result in subrecipients not properly administering the federal programs in accordance with federal regulations. CAUSE: Management indicated this was due to oversight and staffing limitations by previous management. RECOMMENDATION: We recommend the Regional Office of Education No. 39 establish and implement procedures over subrecipient monitoring. MANAGEMENT’S RESPONSE: The Regional Office of Education No. 39 agrees with the audit findings and although some subrecipient monitoring was conducted, it may not have been sufficiently documented. The Regional Office of Education No. 39 is implementing policies and procedures to ensure subrecipient monitoring is not only conducted but documented as well.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519036 2023-002
    - Repeat
  • 519037 2023-004
    Significant Deficiency
  • 519038 2023-005
    Significant Deficiency Repeat
  • 519039 2023-006
    Significant Deficiency Repeat
  • 519040 2023-007
    Significant Deficiency Repeat
  • 519041 2023-008
    Significant Deficiency
  • 519042 2023-002
    - Repeat
  • 519043 2023-004
    Significant Deficiency
  • 519045 2023-007
    Significant Deficiency Repeat
  • 519046 2023-002
    - Repeat
  • 519047 2023-004
    Significant Deficiency
  • 519048 2023-006
    Significant Deficiency Repeat
  • 519049 2023-007
    Significant Deficiency Repeat
  • 519050 2023-008
    Significant Deficiency
  • 519051 2023-002
    - Repeat
  • 519052 2023-007
    Significant Deficiency Repeat
  • 519053 2023-008
    Significant Deficiency
  • 519054 2023-002
    - Repeat
  • 519055 2023-007
    Significant Deficiency Repeat
  • 519056 2023-008
    Significant Deficiency
  • 1095478 2023-002
    - Repeat
  • 1095479 2023-004
    Significant Deficiency
  • 1095480 2023-005
    Significant Deficiency Repeat
  • 1095481 2023-006
    Significant Deficiency Repeat
  • 1095482 2023-007
    Significant Deficiency Repeat
  • 1095483 2023-008
    Significant Deficiency
  • 1095484 2023-002
    - Repeat
  • 1095485 2023-004
    Significant Deficiency
  • 1095486 2023-006
    Significant Deficiency Repeat
  • 1095487 2023-007
    Significant Deficiency Repeat
  • 1095488 2023-002
    - Repeat
  • 1095489 2023-004
    Significant Deficiency
  • 1095490 2023-006
    Significant Deficiency Repeat
  • 1095491 2023-007
    Significant Deficiency Repeat
  • 1095492 2023-008
    Significant Deficiency
  • 1095493 2023-002
    - Repeat
  • 1095494 2023-007
    Significant Deficiency Repeat
  • 1095495 2023-008
    Significant Deficiency
  • 1095496 2023-002
    - Repeat
  • 1095497 2023-007
    Significant Deficiency Repeat
  • 1095498 2023-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $54,905
84.196A Education for Homeless Children and Youth $19,656