Finding 583634 (2022-003)

III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding No. 2022-003 Subrecipient Monitoring U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds – CFDA #21.027 Criterion: Per CFR 200.331 the grantee must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purpose, complies with the terms and conditions of the subaward, and achieves performance goals. Per CFR 200.303, a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The County passed through funding to 48 subrecipients totaling $19,329,471. During calendar year 2022, management did not properly monitor the subrecipients. Specifically, management was unable to provide any documented evidence of a monitoring being performed for 3 of the 48 subrecipients. Cause and Effect: Management lacks a process to ensure that subrecipient files are adequately maintained and the monitoring of subrecipients is occurring during the contract period. Therefore, subrecipients were not properly monitored in accordance with 2 CFR 200.331 nor in accordance with the County’s Subrecipient Monitoring Policy. Questioned Cost: None Recommendation: We recommend that management enhance the design of its control activities to ensure that subrecipient files are adequately maintained, subrecipients are effectively monitored during the contract period noted in the contractual agreements as well as the County’s Subrecipient Monitoring Policy.