Finding 965962 (2023-001)

Item #2023-001 Subrecipient Monitoring International Programs to Support Democracy Human Rights and Labor – 19.345 Criteria: Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved per 2 CFR 200.332. Condition and Context: The Agency did not fully monitor the subrecipients to ensure the subaward was used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Cause: Management did not have internal control over subrecipient monitoring to fully address requirements under 2 CFR 200.332 Effect or Potential Effect: The Agency did not timely monitor the subrecipients in a timely fashion. Subsequent to year end the Agency retroactively monitored these activities and determined that one of the four subrecipients did not fully comply with required documentation and determined that $23,134 of costs billed to the contract were not allowable. Questioned Costs: N/A Repeat Finding: No Recommendation: Management should continue to monitor the internal controls established as part of their subsequent to year end activities to ensure all compliance requirements are conducted in a timely manner. Views of Responsible Officials: Subsequent to year end, the Agency implemented internal controls over subrecipient monitoring and retroactively performed these compliance procedures.