Finding Text
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance) section 200.330, .331, and .332 requires that, as a pass-through entity, the County
is responsible for identifying and reporting to the subrecipient the award information and
applicable requirements to carrying out the award, as well as monitoring the activities of the
subrecipient to ensure that the subaward is used for authorized purposes, complies with the
terms and conditions of the subaward, and achieves performance goals.
Condition and Cause: Due to inadequate internal controls, the County did not provide
complete and accurate subaward information to the subrecipient and monitoring procedures
were not performed.
Effect/Potential Effect: Noncompliance at the subrecipient level may occur and not be
detected by the County.
Questioned Costs: None noted.
Context: The County passed $341,619 through to the McDermitt GID and did not
perform adequate procedures to ensure subrecipient compliance. This is not, however,
deemed to be a questioned cost as no instances of material non-compliance were noted
during our testing of the subrecipient’s grant activities.
Recommendation: Internal control procedures should be enhanced to ensure compliance
with subrecipient monitoring requirements.
Views of Responsible Officials and Planned Corrective Actions: The Humboldt County
agrees with this finding and will enhance control procedures as recommended.
Repeat Finding from Prior Year: No