New Madrid County Human Resources Council Community Partnership

Federal Program: Temporary Assistance for Needy Families (TANF) (93.558). Criteria: 2 CFR 200.332(d) requires pass-through entities to monitor the activities of subrecipients to ensure compliance with federal statutes, regulations, and the terms and conditions of the subaward. Required monitoring activities include reviewing financial and performance reports, following up on deficiencies, and ensuring timely corrective action. Condition: The Council did not perform required monitoring procedures for subrecipients as required by Uniform Guidance: Cause: The Council lacked formal procedures and controls for tracking and reviewing subrecipient audit reports and for documenting follow-up on identified deficiencies. Effect: There is an increased risk that subrecipients may not comply with federal requirements, which could result in unallowable costs, questioned costs, or other noncompliance with federal statutes and regulations. Questioned Costs: None. Context: This finding was noted in 3 out of 4 subrecipients for the fiscal year ended June 30, 2025 with a total of $124,302 paid to subrecipients. Repeat Finding: No. Recommendation: We recommend the client implement and document formal procedures to ensure all required subrecipient monitoring activities are performed in accordance with Uniform Guidance, including obtaining and reviewing subrecipient audit reports and following up on any identified deficiencies. Views of Responsible Officials: Management concurs with the finding and will implement corrective action.

Federal Program: Temporary Assisstance for Needy Families (TANF) (93.558). Criteria: Eligibility for the TANF program (CFDA 93.558) requires that recipients be families that meet certain requirements set by federal and/or state guidelines. Condition: The Council does not perform a file review to ensure recipients under the grant are eligible to receive the benefits. Secondarily, the Council does not have documentation to supprot eligibility in the recipients files. Cause: The Council was unaware that a file review should be conducted to ensure recipients are eligible. The lack of documentation appears to be due to inadquate procedures to ensure all required eligibility documentation is obtained and retained. Effect: As a result, the costs associated with these participants may be disallowed by the federal awarding agency, and the entity may be required to refund these amounts. Questioned Costs: None. Context: None of the files obtained a review and none of the files obtained documentation of eligibility. Repeat Finding: No. Recommendation: We recommend that the Council perform a file review on all recipients to ensure that documentation of eligibility is retained. Secondarily, we recommend the Council strengthen its procedures to ensure that all required eligibility documentation is obtained and retained prior to authorizing program participation and charging costs to the federal award. Views of Responsible Officials: Management concurs with the finding and will implement corrective action.

Criteria: When a sub-recipient of federal awards uses federal money to acquire goods and services expected to cost more than $25,000, the sub-recipient must determine that the vendor is not suspended, debarred, or otherwise excluded from doing business with the federal government. Condition: The Council purchased services from one vendor totaling greater than $25,000 that required the Council to determine the vendor's status with the federal government. The vendors were, in fact, not excluded parties, but the Council had no consistent internal control in place to make that determination before the disbursements were made. Cause: The Council was unaware of this requirement. Effect: The Organization did comply with the federal compliance requirements. However, internal controls were such that noncompliance could occur and go undetected. Questioned Costs: None. Context: Actual expenditures of the grant totaled $499,989. Repeat Finding: No. Recommendation: We recommend the Council verify a vendor's status by checking the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000. Views of Responsible Officials: The Council will verify all vendors' status using the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000.