Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 14.241, U.S. Department of Housing and Urban Development, Housing Opportunities for Persons with AIDS (HOPWA) Federal Award Identification Number and Year - N/A Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.332(b) and (d), all pass-through entities must evaluate each subrecipient's risk of noncompliance with federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring and 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 City did not perform a risk assessment of the subrecipient during the year and did not maintain documentation of subrecipient monitoring as evidence to support subrecipient monitoring performed. Questioned Costs - Unknown Identification of How Questioned Costs Were Computed - N/A Context - The City has a policy in place that it must perform an annual risk assessment of each subrecipient and guidelines for how to perform subrecipient monitoring. The City has one subrecipient that received HOPWA funding, and the City did not perform the required annual risk assessments for this subrecipient. Cause and Effect - The City did not have adequate controls to ensure its policies related to subrecipient monitoring were followed, resulting in inadequate monitoring of subrecipients. Recommendation - The City should ensure that policies on internal controls and processes adequately address the requirements and are complied with. Views of Responsible Officials and Corrective Action Plan - The City agrees with the finding and will put procedures in place to ensure appropriate documentation is retained related to subrecipient monitoring and comply with the relevant internal policies.