Finding Text
2022-001 Financial Management of Federal Awards ? Department of Health and Human Services Passed Through Research Foundation For Mental Hygiene, Inc. Opiod STR AL 93.788 ? Department of Health and Human Services Passed Through NYS OASAS Block Grants for Prevention and Treatment of Substance Abuse AL 93.959 ? Department of Health and Human Services Drug-Free Communities Support Program Grants AL 93.276 Criteria: 2CFR 200.302(b)(1) requires that entities must identify in its accounts all Federal awards received and expended, as well as the Federal programs under which they are received. Federal program and award identification must include, as applicable, the Assistance Listing program title and number, the Federal award identification number and year, the name of the Federal agency and the name of the pass-through entity. 2CFR 200.303 states that entities must establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the awards are managed in compliance with statutes, regulations, and the terms and conditions of the award. Condition: The Council was not aware that the funds received under the above named grants were Federal awards and subject to the Uniform Guidance. The identification of the grant funds as Federal and the need for a Single Audit was made by the auditor engaged to perform the audit of the financial statements. There was no internal controls in place surrounding proper identification or management of Federal funding. Cause: This a new source of funding for the Council and they have not previously had experience with Single Audits or Federal requirements. Effect: If a grant recipient is not aware that funds received are Federal funds, there is a potential that they will not meet the various Federal requirements applicable to the program. This includes establishing and maintaining effective internal controls over the award, and complying with the federal statutes, regulations, terms and conditions of the awards. They will not be aware of the potential Single Audit requirement. Context: Some of the awards received were passed-through from other agencies so the initial source was not clear. Recommendation: We recommend that the Council establish a system for identifying the source of all grants. If there are Federal grants, they should educate themselves regarding the Uniform Guidance and the specific requirements of the program.