Finding 60716 (2022-002)

Material Weakness
Requirement
M
Questioned Costs
-
Year
2022
Accepted
2023-02-15
Audit: 49331
Organization: Metro Meals on Wheels, Inc. (MN)
Auditor: Abdo

AI Summary

  • Core Issue: Metro Meals on Wheels lacks necessary policies for assessing and monitoring subrecipient risks, which may lead to insufficient oversight.
  • Impacted Requirements: Compliance with criteria ? 200.332(b)-(h) is not met, including risk evaluations, monitoring activities, and ensuring single audits for subrecipients.
  • Recommended Follow-Up: Develop documentation for risk assessments, enhance monitoring procedures, record remedial actions, and create a year-end report for subrecipients regarding audit requirements.

Finding Text

Condition: Metro Meals on Wheels does not have policies in place to fulfill or record the fulfillment of the criteria. Specifically, Metro Meals on Wheels does not document risks of the subrecipient, document monitoring procedures to fulfill all monitoring requirements in the criteria, issue remedial management decisions and follow-up on findings, or ensure that subrecipients receive single audits if required. Criteria: Metro Meals on Wheels is required to make risk assessments and monitor subrecipients according to ? 200.332(b)-(h). These requirements include evaluating subrecipient risks of not fulfilling Aging Program requirements, monitoring actual activity of the subrecipient, issuing management findings on deficiencies in completing program requirements, following up on deficiencies, ensuring that subrecipients receive a single audit if required and acting on subrecipient findings from single audits. Cause: Procedures to fulfill the criteria have not been developed by Metro Meals on Wheels? management. Effect: Subrecipients may need additional oversight action. Recommendation: Our recommendations include a few steps. First, we recommend that management develop documentation regarding how risks of subrecipients are evaluated yearly. This documentation should include considerations of subrecipient weaknesses and any follow-up actions taken. It should also document resolution processes and whether resolution was made. (Not all subrecipients will need remedial action. This conclusion should be documented as well.) Second, we recommend that management develop paperwork to properly monitor subrecipients and follow-up on deficiencies according to ? 200.332. These processes have started in 2022. Site visit documentation can be modified to include useful documentation for these purposes. In addition, management can consider the MMOW funder?s site visit documentation in monitoring procedures. If the funder?s monitoring of Metro Meals on Wheels? subrecipients is used by management, the funder?s documentation should be reviewed and stored as support by management. Third, we recommend recording any remedial action taken during the year related to subrecipient errors. Fourth, we recommend developing a year-end report that includes a reminder for subrecipients to perform a single audit, if required, and notify Metro Meals on Wheels of the audit results as it pertains to the passed through funding.

Corrective Action Plan

2022-002 - Aging Cluster - Material Weakness in Compliance, Recommendation: Our recommendations include a few steps. First, we recommend that management develop documentation regarding how risks of subrecipients are evaluated yearly. This documentation should include considerations of subrecipient weaknesses and any follow-up actions taken. It should also document resolution processes and whether resolution was made. (Not all subrecipients will need remedial action. This conclusion should be documented as well.) Second, we recommend that management develop paperwork to properly monitor subrecipients and follow-up on deficiencies according to ? 200.332. These processes have started in 2022. Site visit documentation can be modified to include useful documentation for these purposes. In addition, management can consider the MMOW funder's site visit documentation in monitoring procedures. If the funder's monitoring of Metro Meals on Wheels' subrecipients is used by management, the funder's documentation should be reviewed and stored as support by management. Third, we recommend recording any remedial action taken during the year related to subrecipient errors. Fourth, we recommend developing a year-end report that includes a reminder for subrecipients to perform a single audit, if required, and notify Metro Meals on Wheels of the audit results as it pertains to the passed-through funding.2022-002 - Aging Cluster - Material Weakness in Compliance, Recommendation: Our recommendations include a few steps. First, we recommend that management develop documentation regarding how risks of subrecipients are evaluated yearly. This documentation should include considerations of subrecipient weaknesses and any follow-up actions taken. It should also document resolution processes and whether resolution was made. (Not all subrecipients will need remedial action. This conclusion should be documented as well.) Second, we recommend that management develop paperwork to properly monitor subrecipients and follow-up on deficiencies according to ? 200.332. These processes have started in 2022. Site visit documentation can be modified to include useful documentation for these purposes. In addition, management can consider the MMOW funder's site visit documentation in monitoring procedures. If the funder's monitoring of Metro Meals on Wheels' subrecipients is used by management, the funder's documentation should be reviewed and stored as support by management. Third, we recommend recording any remedial action taken during the year related to subrecipient errors. Fourth, we recommend developing a year-end report that includes a reminder for subrecipients to perform a single audit, if required, and notify Metro Meals on Wheels of the audit results as it pertains to the passed-through funding. Planned Action Management will develop risk assessment and monitoring documentation for subrecipients' yearly evaluations. Subrecipients' weaknesses and follow-up recommendations will be included in the documentation and shared with the subrecipients along with subsequent corrective actions taken by the subrecipients. Included in the year-end report will be the recommendation that subrecipients perform a single audit, if required, and notify Metro Meals on Wheels of the audit results as it pertains to the passed-through funding.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 60715 2022-001
    Material Weakness
  • 60717 2022-003
    Significant Deficiency
  • 60718 2022-004
    Significant Deficiency
  • 637157 2022-001
    Material Weakness
  • 637158 2022-002
    Material Weakness
  • 637159 2022-003
    Significant Deficiency
  • 637160 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.99M
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $19,468