Finding Text
SECTION 3 ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (continued) Finding 2022-003 Monitoring Subcontractors Performance Condition: The Organization did not develop and perform procedures to verify the subcontractor?s adherence to contract terms (provide contract services), condition and contract specifications. The Organization relied on what they considered to be pre-approval Pacific Mountain Development Councils? website as meeting the criteria. The PacMnt contracts do not reference the website, or that placement on the website waives oversite by the grantee. Cause: The Organization?s internal controls were inadequate to perform and document the performance monitoring of the subcontractors. The Pacific Mountain Workforce Development Council provided an on-line ?Eligible Training Provider List? which the Organization accepted and relied upon as a pre-approval that the contracted services required no further monitoring. Criteria: Pacific Mountain Workforce Development Council, Contracts 102-TCC-BS-PY21, 102-TC-PEC-PY21, 102-TCC-CY-BS-PY21: 31.6 Oversite Grantee must maintain oversight over all contracts. This includes, but is not limited to, monitoring contractor performance regarding contract terms, conditions, and specifications. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. Effect: The Organization did not monitor the contactors for adherence to contract terms, condition and specifications. Recommendation: To ensure compliance with governmental grant programs, additional training and education should be obtained by associated staff. Management?s response: Management agrees with the recommendation and have scheduled training for key personnel. Person Responsible: Program Managers