Finding Text
Internal controls over Compliance with Subrecipient Monitoring (Significate Deficiency) Indentification of the federal program(s): Assistance Listing Program title and Number: 21.027 Appalachian Community Grant Program. Federal award identification number: 21.027: Ohio Department of Development (GOA-F23-ACGDG-195968. Name of the federal agency: 21.027 Department of the Treasury. Name of the applicable pass-through entities: 21.027: Ohio Department of Development. Creteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.332(a), pass-through entities must ensure that every subaward is clearly identified to teh subreceipient and must include required information in a written agreement. Additionally, section 200.332(d), requires pass-through entities to monitor the activities of subrecipients to ensure that federal awards are used to aughorized purposes and in compliance with laws, regulations, and the terms of teh award. Condition: During the audit, we noted that SAOP disbursed federal funds to one subrecipient without executed subaward agreements. Furthermore, there was no evidence of ongoing monitoring activities such as site visits, performance reviews, or financial oversight. Cause: SAOP did not have a formal procedures in place to ensure that subrecipients agreement were executed prior to disburesement and lacked a structured subrecipient montoring process. Effect or potential effect: The absence of signed agreements and monitoring increases the risk of noncopliance with federal requrements and potential misuse of federal funds. SAOP mah be held responsible for any unallowable costs incureed by subrecipients. Questioned costs: None. Context: One Subrecipient does not have a signed agreement and lacks proper monitoring. Identificaion as a repeat findings, if applicable: Not Applicable. Recommendation: We recommend that SAOP implement a formal subrecipient management policy that includes executing written subaward agreement prior to disbursing funds and establishing a documented monitoring plan that includes periodic reviews, site visits, and performance evalations. Views of responible officials: Management agrees with teh finding and recommendations.