Finding Text
Department of Education, passed through the Minnesota Department of Education CFDA No. 84.027 and 84.173, award numbers 0397-52-000 FIN 419, 0397-52-000 FIN 420, 0397-52-000 FIN 140, 0397-52-000 FIN 425 Award year 2022 Special Education Cluster Subrecipient Monitoring Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria ? Requirements contained in 2 CFR Part 200.331 specifies that pass-through entities be responsible for identifying Federal Award information and applicable compliance requirements at the time of awards to subrecipients; for monitoring the subrecipient?s use of Federal awards; providing reasonable assurance that the subrecipient administers Federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements; ensuring that subrecipients have required audits completed, reviewing the results of those audits; and evaluating the impact of subrecipient activities on the pass-through entity?s ability to comply with applicable Federal regulations. Condition ? The agreements between Lake Agassiz Education Cooperative and its subrecipients did not contain language set forth in 2 CFR 200.331 and no formal subrecipient monitoring procedures were being performed. Cause ? Lake Agassiz Education Cooperative?s agreements with subrecipients must properly follow Uniform Guidance and no formal monitoring procedures were in place. Effect ? Lacking controls could lead to noncompliance with the requirements of the program by subrecipients and could require the return of grant funds to the grantor agency or the entity receiving less grant funds than they were eligible for. Questioned Costs ? None reported Context/Sampling ? Testing of 100% of the subrecipient entities were selected for subrecipient monitoring testing. Repeat Finding from Prior Year ? No, as a Uniform Guidance audit was not required in the previous two years. Recommendation ? We recommend Lake Agassiz Education Cooperative maintain formal agreements with the subrecipient entities that include the Uniform Guidance language and implement formal monitoring processes over subrecipient entities. Views of Responsible Officials ? There is no disagreement with the audit finding.