Finding Text
Finding # 2022-003 - Significant Deficiency - Subrecipient Monitoring Criteria: Pursuant to 2 CFR 1321.65 of the Uniform Guidance, the auditee is required to oversee the activities of the service providers (subrecipients) with respect to the provision of services, voluntary contributions, and coordination of services. Condition, Context, Cause and Effect: During 2022, management requested in writing to each subrecipient the single audit reports performed in accordance with the Uniform Guidance. However, management did not follow up with the subrecipients to obtain and review these reports for potential compliance findings and questioned costs. As such, the uniform guidance reports were not obtained, and the Corporation did not comply with the aforementioned regulatory requirement. The lack of follow-up on obtaining the single audit reports the year ended June 30, 2022, was due to staff turnover and vacancies in the Corporation?s finance department. Questioned Costs: There were no questioned costs identified. Recurring Finding: This finding a recurring item. Recommendation: We recommend that management assign a finance department professional to create a tracking tool to support the process of obtaining the single audit reports from the subrecipients. Management should also integrate the Corporation?s program managers who work regularly with subrecipients to aid in obtaining the single audit reports. Views of Responsible Officials and Planned Corrective Action Plan: Management refers the reader to the separately provided Corrective Action Plan for its remediation