Finding Text
FINDING 2024-001 – LACK OF DOCUMENTATION FOR VERIFICATION OF SUBRECIPIENT MONITORING ACTIVITIES
Condition: Limited documentation to evidence compliance with federal regulations related to certain subrecipient monitoring activities.
Criteria: As defined in 2 CFR section 200.332 a pass-through entity must document the risk assessment of each subrecipient and document monitoring activities performed.
Cause: Limited documentation to evidence subrecipient risk assessment and monitoring activities.
Effect: Subrecipient may not be in compliance with federal or grant award provisions.
Questioned Costs: None
Recommendation: We recommend the Organization maintain documentation that evidences its compliance with required subrecipient monitoring activities in accordance with 2 CFR 200.
Management’s Response: The Organization has maintained the same process for the last several years, including up front determination of subrecipient risk, use of funds solely with low-risk subrecipients, and detailed annual review of expenditures. Accordingly, no costs have been questioned. Management will ensure written documentation is maintained as evidence of this process.