Finding Text
Adult Education-Basic Grants to States-ALN #84.002;
U.S. Department of Education ;
Pass-Through Entity – Pennsylvania Department of Education.
Criteria: 2 CFR 200.332 states that all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that 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.
Condition: The Center receives federal money to provide Adult Basic Education, General Education Development (GED), family literacy, career assessment and career and job-skills training for the underprivileged of the community. In order to carry out those services, the Center enters into sub-awards with providers throughout its service territory. Audit procedures disclosed that no monitoring of the 7 subrecipients occurred during the period under audit.
Context: The Center has been providing Adult Basic Education, General Education Development (GED), family literacy, career assessment and career and job-skills training for the underprivileged of the community services under a grant received from the Pennsylvania Department of Education. In order to provide the services, sub-awards are made with providers within the Center’s service territory. The Center is required to monitor the recipients of the sub awards to ensure that 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.
Cause: The Center did not have a formal, documented, consistent process in place to ensure that all subrecipients were reviewed during the year to ensure proper use of the subaward.
Effect: The subcontractor may have used the funds in a way that was not in accordance with the sub agreement.
Questioned Costs: None.
Repeat Finding: This was not a repeat finding.
Recommendation: We recommend the Center establish a formal monitoring process to review the activities on each of its recipients. This should include site visits, review of annual external audits when applicable and training when deemed necessary.
View of Responsible Officials: Management has responded to this finding in the Corrective Action Plan which is part of this reporting package.