Finding Text
Criteria:
• In Title 31, Subtitle V, §6304. Using grant agreements, establishes that “An executive agency shall use a grant agreement as the legal instrument reflecting a relationship between the United States Government and a State, a local government, or other recipient when—
(1) the principal purpose of the relationship is to transfer a thing of value to the State or local government or other recipient to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; and
(2) substantial involvement is not expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement.”
• CH2, Sec. 7, Application and Award Management Manual, establish in the Application and Award Management Policy that “Cor3 will (7) require subrecipients to sign the subrecipient agreements at Request for Public Assistance (RPA) and a subrecipient modification at issuance of Project Worksheet (PW)”.
Condition:
COR3 was unable to provide the agreements for ten (10) subrecipients from a sample of sixty (60). The subrecipients were the following:
The condition could result in noncompliance with procurement requirements applicable to COR3.
Questioned Costs:
Could not be determined.
Recommendation:
We recommended management to make sure that agreements are executed before disbursements are expected to be made.