Finding Text
Finding Reference 2022-002 Federal Agency U.S. Department of Health of Health and Human Services Federal Program Title Community Services Block Grant (ALN 93.569) Compliance Requirement Subrecipient Monitoring (M) Type of finding Material Weakness in Internal Control (MW), Instance of Noncompliance (NC) This finding is similar to prior years finding 2021-002, 2020-005 and 2019-005. Statement of Condition We performed audit procedures to the four (4) sub-recipient monitoring reports. Out of those subrecipients, we found three (3) that lacked adequate monitoring procedures. Criteria 42 USC 9914 (a)(1)(2), establishes that (a) In order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of State, the State shall conduct the following reviews of eligible entities:(1) a full onsite review of each such entity at least once during each 3-year period, (2) an onsite review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program (CSBG). Cause of Condition Internal Control Monitoring Program for Federal Funds CSBG establishes the guidelines over monitoring reports. The Office does not have sufficient staff to perform monitoring reviews to sub-recipients. Effect of Condition The Office cannot ensure that the delegated funds to the sub-recipients are being used to meet the goals and standards required by the State. Also, the Office is not in compliance with the 42 USC 9914 (a)(1)(2). Recommendation The Office should strengthen internal control procedures in the supervision process of the monitoring in order to comply with state and federal regulations. Questioned Cost None