Finding 525515 (2024-002)

Significant Deficiency
Requirement
M
Questioned Costs
-
Year
2024
Accepted
2025-03-03

AI Summary

  • Answer: The audit found a lack of risk evaluation for a subrecipient at the time of the subaward.
  • Trend: This indicates a potential pattern of oversight in assessing subrecipient compliance risks.
  • List: Follow up by implementing a standardized risk evaluation process for all subawards.

Finding Text

During our audit, we examined a non-statistical sample of one subaward and noted that there was no evidence of evaluation of the subrecipient’s risk of noncompliance at the time of the subaward.

Corrective Action Plan

Management will coordinate with its contractor to expand the staffing assigned to conduct oversight of the federal grant program to ensure compliance. Management will develop and follow a checklist to assess the compliance risks of the subrecipient. Assessments will be conducted at selected milestones beginning at development of the grant application and throughout the life of the grant, and will consider the following factors: Subrecipient’s prior experience with grants, either as a direct recipient or subrecipient; Results of the previous compliance audit of the same or similar program that has been audited as a major program; Changes in key personnel; System changes or updates; and In-person, on-site monitoring of the activities of any subrecipient shall take place annually to ensure that the subaward is used for authorized purposes, in accordance with federal statute and regulations.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 525514 2024-001
    Significant Deficiency
  • 1101956 2024-001
    Significant Deficiency
  • 1101957 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.823 Port Infrastructure Development Program $1.62M