Finding Text
2022-007
Improper monitoring of subrecipients
93.421 Strengthening Public Health Systems and Services
Audit Results:
Criteria:Organizations should check the status of subrecipients at least annually and maintain documentation as
evidence. In addition, if their are findings on the audited financial statements of a subrecipient, there
should be follow-up to determine the status of those findings in subsequent years.
Condition:Auditors noted there was no documentary evidence of a check for suspension or debarment for any of the
subrecipients and in addition there was no follow up on the audit findings for subrecipient.
Effect:As a result, the Organization was missing documentation relating to subrecipient monitoring requirements for the year ended December 31, 2022.
Cause:This is due to ineffective controls over subrecipient monitoring resulting in a lack of documentation,
miscommunications during employee transitions and the need to train new employees on policies and
procedures.
Recommendation:
Auditors recommend that there are checks at least annually for suspension or debarment and that
documentation be maintained for all checks completed. In addition the Organization should follow up and
obtain audited financial statements each year from subrecipients or other documentation showing the
status of audit findings. It is critical that subrecipients are properly monitored to ensure that they are
complying with Uniform Guidance requirements.
Views of Responsible Officials and Planned Corrective Actions:
Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.