Finding Text
Condition: Violence Free Minnesota did not include required information in subrecipient contracts, including informing subrecipients of the possible need for a Single Audit and informing the subrecipients of the ALN of funding. This was determined by looking at subrecipient contracts, noting the absence of required information. There was also an absence of documentation showing that subrecipients were confirmed to be audited if required. This is a repeat finding from prior year. Criteria: Violence Free Minnesota is required to disclose certain information in grant agreements to subrecipients and verify that subrecipient are audited if required, as defined by 45 CFR 75.352. Context: This finding is isolated to the major program. The Organization has since ended the practice of passing funds to subrecipients due to the complexity of the requirements. Cause: Violence Free Minnesota was not directly made aware of these requirements by State agencies. The Organization did not ensure that they were following all required controls and procedures required by Uniform Guidance. Effect: Subrecipients did not receive required information which could result in inappropriate acceptance or reporting of the award. Recommendation: Review 45 CFR 75.352 and integrate required information into grant contracts to subrecipients. We noted that the Organization has discontinued granting funds to subrecipients until the Organization attains the technical proficiency to ensure that the requirements are met. Views of Responsible Officials: Violence Free was not directly made aware that the funding they were issuing to organizations as a part of this award to be treated as subrecipient contracts. Management has decided not to accept any future grants with this language until proper policies are procedures are in place as well as sufficient staff capacity to ensure adequate oversight.