Finding 965028 (2023-003)

Federal Program Information Funding Agency: U.S. Department of Education Title: 21ST Century Community Learning Centers AL Number: 84.287 Criteria The Cooperative is responsible for overseeing and monitoring subrecipients and must evaluate each subrecipient’s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining appropriate subrecipient monitoring. (2 CFR section 200.332(b)) Condition Of the 12 subrecipient school districts, the Cooperative was able to provide 3 of the annual monitoring reports. In addition, the Cooperative does not review subrecipient audit reports. Questioned Costs None. Context We reviewed 3 of the 12 subrecipient monitoring reports. Effect The Cooperative did not properly monitor the subrecipients, which could lead to noncompliance. Cause During our testing of the Cooperative’s internal controls, it was noted that there was not proper controls in place for subrecipient monitoring. Repeat Finding This is not a repeat finding. Recommendation The Cooperative should ensure controls are in place to properly review and monitor subrecipients. Management’s Response The Cooperative agrees with the recommendation and will ensure controls are in place to properly review and monitor subrecipients.