CLINTON CITYLocal Government

Criteria: The Compliance Supplement released by the Department of Treasury for the Coronavirus Relief Fund requires that controls be in place to ensure that subrecipient monitoring is in effect for all subrecipients of the award. This includes monitoring subrecipient activities to provide a reasonable assurance that the subrecipient administered the subaward in compliance with the terms and conditions of the subaward. Condition: Clinton City granted one subaward to Davis Education Foundation; however, the city did not implement controls to monitor activities of the subrecipient. Cause: The city was not aware of the subrecipient monitoring requirement. Effect: Lack of controls over subrecipient monitoring and failure to performing monitoring activities could result in noncompliance and use of subawards for unauthorized purposes. We have questioned the amount of the subaward where monitoring should have taken place totaling $35,000. Recommendation: We recommend that the city implement controls and procedures to monitor all subrecipient awards and expenditures. Management?s Response: In future awards to any subrecipients, the City will ensure the MOU or Agreement provides for regular feedback reports from the subrecipient as well as a final report outlining the compliance of terms and conditions of the subaward.