Finding Text
Federal agency name: U.S. National Science Foundation
Federal program title: Geosciences, Computer and Information Science and Engineering,
Office of Cyber Infrastructure & Integrative Activities
AL No.: 47.050, 47.070, 47.079, 47.080 & 47.083
Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019-05/31/2024),
EAR-2012893 (10/01/2020 – 08/31/2025), EAR-2028793 (05/15/2020 – 04/30/2021), OAC-
1931278 (10/1/2019 – 09/30/2022), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592
(01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OISE-1855654
(05/15/2019 – 12/31/2023), OAC-1664061 (10/01/17 – 09/30/2022) & OIA-1937099
(09/01/2020 – 08/31/2021)
Pass Through Entity: Utah State University & University of Cincinnati
MW2021-005 SUBRECIPIENT MONITORING
Material Weakness
Criteria
The regulations are documented in 31 USC 7502(f)(2), 2 CFR sections 200.330, .331, and
.501(h); (Requirements for Pass-Through Entities). The criteria for monitoring subrecipients of
federal awards should be following federal regulations, the terms of the federal contract, and any
additional requirements specified by the auditee's policies and procedures. Specifically, the
monitoring criteria should include, but not be limited to, the following:
• Subrecipient Risk Assessment
• Financial Monitoring
• Compliance Monitoring
• Reporting and Documentation
Condition
The auditee failed to comply with federal regulations requiring the monitoring of subrecipients
for federal awards on a timely basis. Recipients of federal awards are responsible for monitoring
the activities of subrecipients to ensure that they comply with applicable laws, regulations, and
the terms and conditions of the federal award. CUAHSI did not complete the monitoring of its
2021 subrecipients until 2024. During the year ended December 31, 2021, CUAHSI had
$128,472 in amounts paid to subrecipients. Based on our testing of amounts paid to
subrecipients, no amounts were identified as unallowable.
Cause & Context
CUAHSI had a policy and procedure manual in place which outlined the steps for monitoring.
There was no audit evidence of CUAHSI following the policy and monitoring that the
subrecipient was using the funding as prescribed during the year ended December 31, 2021.
Effect
CUAHSI’s lack of monitoring creates a significant risk of the possible misuse or improper use of
funds.
Questioned Costs
None
Prior Year Audit Finding
Yes, previously reported as MW2020-005.
Recommendation
The auditor recommends that management review the requirements documented in 31 USC
7502(f)(2), 2 CFR sections 200.330, .331, and .501(h);(Requirements for Pass-Through Entities)
and develops and implements procedures to adhere to such requirements.
View of Responsible Official and Planned Corrective Action
See accompanying Corrective Action Plan.