Finding 612010 (2022-001)

Please see table on page 16 of the Single Audit.Finding 2022-001 ? Subrecipient Monitoring Condition: The County did not have a documented risk assessment process for evaluating subrecipient?s risk of non-compliance. Additionally, as part of the monitoring process, the County did not have controls in place to obtain and review the annual audit reports of all subrecipients in a timely manner with documentation of such review. Criteria: The Pennsylvania Department of Human Services (PA DHS) and 2 CFR section 200.332(b) requires pass-through entities to evaluate subrecipient risks of noncompliance as part of their subrecipient monitoring procedures. In addition, 2 CFR section 200.332(d) indicates as part of the monitoring process, the pass-through entity should ensure subrecipients take follow-up action on audit deficiencies, which would be identified as part of the review of the annual audit reports of subrecipients. Cause: There were no procedures in place to document the County?s assessment of risk for subrecipients. In addition, the County does not have procedures in place to adequately review the subrecipient audits received. Effect: The deficiencies in subrecipient monitoring could result in the County not identifying unallowable expenses being incurred by County subrecipients. Repeat Finding: This is not a repeat finding. Recommendation: We recommend implementation of procedures to formally document and complete a risk assessment of subrecipients. Based on the risk assessment performed, the County should develop monitoring procedures to address the risks noted, which should include a documented review of subrecipient audits and deficiencies be followed up on, if applicable. Questioned Costs: Unknown Views of Responsible Official and Planned Corrective Action: Management agrees with the finding. See separate correction action plan.