Finding 968058 (2023-005)

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (Continued) Ref. No. Compliance and Internal Control over Compliance Findings 2023-005 Subrecipient Monitoring - Significant Deficiency Federal agency: Department of Justice Programs Pass-Through Entity: State of Hawaii Department of the Attorney General Program: ALN No. 16.575 Crime Victim Assistance Criteria: Subrecipient monitoring and management requirements for pass-through entities at 2 CFR §200.332 – Requirements for pass-through entities requires that the County 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. Pass-through entity monitoring of the subrecipient must include reviewing financial and performance reports required by the pass-through entity. The County of Maui’s Prosecuting Attorney’s Office completes a “Project Monitoring Report Form” during the project period for each subrecipient which details programmatic and fiscal data. At the end of the contract period, each subrecipient is required to submit a “Subrecipient Monitoring Form”. The purpose of this report is to monitor subrecipients, and to also ensure that the County is in compliance with federal, state, and Victims of Crime Act requirements and regulations. Condition: During our testing of the subrecipient monitoring compliance requirement, we discovered the following: • Two (2) out of 2 instances where the County did not complete the Project Monitoring Report Form for the subrecipient during the contract period. • One (1) out of 2 instances where the County did not obtain a Subrecipient Monitoring Form from the subrecipient at the end of the contract period. • One (1) out of 2 instances where the County obtained a Subrecipient Monitoring Form from the subrecipient, however, it was not properly completed. Cause: The County did not follow its procedures to complete the Project Monitoring Report Form and obtain the Subrecipient Monitoring Form from its subrecipients. Effect: Completion of the Project Monitoring Report Form and obtaining the Subrecipient Monitoring Form from subrecipients help to ensure that the subaward is used for authorized purposes and the terms and conditions of the subaward and that subaward performance goals are achieved. Questioned Cost: $ -- Recommendation We recommend the County ensure the completion of its Project Monitoring Report Form during the contract period and obtain the Subrecipient Monitoring Form from its subrecipients at the end of every contract period as part of its monitoring procedures over subrecipients. Views of Responsible Officials and Planned Corrective Action The County agrees with the finding and the recommendation. See Part IV Corrective Action Plan