Finding 959769 (2023-002)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-03-21

AI Summary

  • Core Issue: The Office failed to monitor four sub-recipients for the past three years, leading to a material weakness in internal controls.
  • Impacted Requirements: Noncompliance with 42 USC 9914 (a)(1)(2), which mandates regular reviews of sub-recipients to ensure they meet performance and financial standards.
  • Recommended Follow-Up: Increase staffing to support systematic monitoring practices, ensuring compliance and effective fund management.

Finding Text

Federal Agency U.S. Department of Health and Human Services: Federal Program Title Community Services Block Grant (ALN 93.569): Compliance Requirement Subrecipient Monitoring (M): Type of finding Material Weakness in Internal Control (MW), Instance of Noncompliance (NC): This finding is similar to prior years finding 2022-002, 2021-002 and 2020-005.: Statement of Condition In our audit, we found that the Office, which provides funds to four (4) sub-recipients, failed to perform monitoring for any of them during the fiscal year 2022-2023, as well as in the two (2) previous years.: Criteria 42 USC 9914 (a)(1)(2), establishes that (a) In order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of State. The State shall conduct the following reviews of eligible entities:(1) a full onsite review of each such entity at least once during each 3-year period, (2) an onsite review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program (CSBG).: Cause of Condition The Internal Control Monitoring Program for Federal Funds under the CSBG establishes the guidelines over monitoring reports. However, the Office does not have sufficient staff to perform monitoring reviews to sub-recipients. Effect of Condition The Office cannot ensure that the delegated funds to the sub-recipients are being used to meet the goals and standards required by the State. Also, the Office is not in compliance with the 42 USC 9914 (a)(1)(2). Recommendation To enhance the effectiveness of current monitoring efforts, it is a requirement to uphold and reinforce the consistency of these activities. Sustaining systematic and regular monitoring practices is essential for ensuring continued compliance with regulations and the efficient management of funds. Questioned Cost None.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 383325 2023-002
    Material Weakness Repeat
  • 383326 2023-002
    Material Weakness Repeat
  • 383327 2023-002
    Material Weakness Repeat
  • 383328 2023-002
    Material Weakness Repeat
  • 959767 2023-002
    Material Weakness Repeat
  • 959768 2023-002
    Material Weakness Repeat
  • 959770 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $556,064
93.569 Community Services Block Grant $378,327
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $145,074