Finding Text
Subrecipient Monitoring
General Information:
Grant Title: Airport Improvement Program
ALN #: 20.106
Federal Agency: Department of Transportation
Condition:
We noted during our audit that the Logan County Commission failed to properly monitor subrecipients. Specifically, there was no assurance that the funds sent for reimbursement were expensed by the subrecipients.
Criteria:
Appendix XI of the 2 CFR Part 200 July 2021 Compliance Supplement states, in part:
“Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f))…”
Questioned Costs:
$993,739
Context:
$993,739 of disbursements were made to local governments without the subrecipients activities being monitored to ensure expenditures of the subaward were used for authorized purposes and in accordance with the grant guidelines.
Cause:
The Logan County Commission did not have procedures in place to ensure this subrecipient monitoring requirement was performed.
Effect:
Failure to properly monitor subrecipients increases the likelihood of errors or irregularities not being prevented or detected in a timely manner. Additionally, the risk of unallowable activities and unallowable costs is significantly increased. Management failed to comply with all applicable, material compliance requirements of the grant agreement.
Recommendation:
The Logan County Commission is directed to review this regulation and comply with the provisions set forth therein.
Clients’ response
See Corrective Action Plan