Multifamily Housing Program Financial Management Toolkit

8e. Requirements for Grantee Monitoring of Sub-recipients’ Audit Compliance

Grantees are required to monitor the Federal audit requirements compliance of pass-through entities, including sub-recipients. Other responsibilities for monitoring sub-recipients include:

  • Inform sub-recipients of Catalog of Federal Domestic Assistance (CDFA) number
  • Advise sub-recipients of applicable Federal laws and regulations
  • Monitor activities of sub-recipients
  • Ensure receipt of audit reports in accordance with the appropriate standard(s)
  • Issue management decisions on audit findings
  • Consider adjustments of pass-through entity’s records
  • Require access to accounting records
  • Keep report submissions on the file for three years from the date of receipt