Finding Text
Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 200.303 specifies that a nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: BHT did not have policies and procedures in place to ensure all the requirements of subrecipient monitoring were being performed. Context: Of the five subrecipients selected for testing (there were seven in the population), we noted that limited subrecipient monitoring procedures were performed. Cause: Policies and procedures were not in place to provide adequate subrecipient monitoring. Effect: BHT could pass through federal funding to subrecipients who do not have the internal policies and controls in place to properly manage the federal funding. Repeat Finding: Yes. Prior year finding 2021-003. Recommendation: We recommend that BHT implements policies and procedures to perform subrecipient monitoring.