Finding Text
Reference Number: 2023-002 – Significant Deficiency, Subrecipient Monitoring
Criteria: Pass through entities must clearly identify to the subrecipient: (1) the award as a subaward at the time of subaward (or subsequent subaward modification) by providing the information described in 2 CFR section 200.332(a)(1); (2) all requirements imposed by the PTE on the subrecipient so that the federal award is used in accordance with federal statutes, regulations, and the terms and conditions of the award (2 CFR section 200.332(a)(2)); and (3) any additional requirements that the PTE imposes on the subrecipient in order for the PTE to meet its own responsibility for the federal award (e.g., financial, performance, and special reports) (2 CFR section 200.332(a)(3)).
Condition: The contracts between the Board and its subrecipients did not include all the required elements as prescribed by 2 CFR Section 200.332.
Cause: The Board did not segregate the source of funds between federal and state sources in a timely manner. As a result, the subrecipient did not have timely information of federal Uniform Guidance and Texas Grant Management Standards requirements.
Effect: The Boards subrecipients may not have timely or accurate information to determine the source of federal vs state funding to segregate funds in accordance with the Uniform Guidance and Texas Grant Management Standards.
Management Response: See management’s corrective action plan.