Finding 555300 (2024-001)

Significant Deficiency
Requirement
M
Questioned Costs
-
Year
2024
Accepted
2025-04-17
Audit: 353940
Organization: Zero to Five Montana (MT)

AI Summary

  • Core Issue: The Organization failed to provide a contract for 1 out of 11 subrecipient samples, violating monitoring policies.
  • Impacted Requirements: This deficiency indicates non-compliance with established subrecipient monitoring procedures.
  • Recommended Follow-Up: Ensure adherence to procurement policies to prevent misuse of funds related to Federal Awards.

Finding Text

2024-001 Monitoring of Funds Passed to a Subrecipient – Significant Deficiency Criteria: The Organization should follow their policies related to subrecipient monitoring. Condition: During our testing, we found 1 instance out of 11 samples that the Organization could not produce a contract with a subrecipient that establishes critical information for the monitoring procedures to be performed. Cause: Undetermined. Effect: The Organization did not follow their policy for subrecipient monitoring which could allow for funds to be expended for purposes outside of the Federal Award. Recommendation: We recommend that the Organization follows their policies related to procurement.

Corrective Action Plan

Finding Number 2024-001: Monitoring of Funds Passed to Subrecipient Federal Program ALN: 93.575 Corrective Action Plan: Zero to Five Montana has implemented updated policies and procedures to ensure proper execution and documentation of subrecipient contracts and payments. All contracts are now processed and signed via an electronic signing service (e.g., DocuSign) by the Executive Director, with copies securely retained. Prior to disbursing funds, subrecipients with executed contracts are set up as vendors in the expense management system. The subrecipient must complete their vendor profiles and submit tax documentation. Payments are supported by an invoice that includes payment details, expense codes, and grant assignments (if applicable), and must be reviewed and approved by the Program and Operations Directors to confirm all documentation and compliance steps are met. Staff will be trained on these procedures by April 14, 2025, and quarterly audits will be conducted to monitor adherence, with findings reported to leadership and the governing board. Contact Person Responsible for Corrective Action: Caitlin Jensen, Executive Director Anticipated Completion Date: April 14, 2025

Categories

Subrecipient Monitoring Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 1131742 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $179,609
93.434 Every Student Succeeds Act/preschool Development Grants $3