FAC Explorer

Audit 12996

FY End
2021-12-31
Total Expended
$786,796
Findings
4
Programs
2
Organization: County of Stephens (TX)
Year: 2021 Accepted: 2024-01-23
Auditor: Condley & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9477 2021-001 Significant Deficiency - P
9478 2021-002 Significant Deficiency - P
585919 2021-001 Significant Deficiency - P
585920 2021-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $630,200 Yes 2
21.019 Coronavirus Relief Fund $156,596 - 0

Contacts

Name Title Type
TX7HU3NN4UJ7 Kelsey Cornwall Auditee
2545592371 Jeff Graham Auditor
No contacts on file

Notes to SEFA

Title: Basis Of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The 10% de minimis cost rate as permitted in the UG, Section 200.414 is used. The accompanying schedule of expenditures of federal awards includes the federal award activity of Stephens County under programs of the federal government for the year ended December 31, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Audits of States, Local Governments, and Non- Profit Organizations. Because the Schedule presents only a selected portion of the operations of Stephens County, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Stephens County.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The 10% de minimis cost rate as permitted in the UG, Section 200.414 is used. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The 10% de minimis cost rate as permitted in the UG, Section 200.414 is used. The 10% de minimis cost rate as permitted in the UG, Section 200.414 is used.

Finding Details

Finding 2021-001
Criteria: In accordance with Texas Government Code Title 10, Subtitle F, Chapter 2257, a deposit of public funds shall be secured by eligible securities to the extent and in the manner required by Government Code. Condition: During the 2021 audit of cash balances, instances of uncollateralized deposits were discovered as stated in Note 4 of the Notes to Financial Statements. Effect: Public funds are not collateralized due to County funds exceeding FDIC insurance coverage and pledged securities were not sufficient to cover the remaining balance. Cause: County Treasurer does not have access to review bank balances for all funds in custody of the County. Recommendation: We recommend the County review bank balances and maintain pledged securities sufficient to cover all deposits of public funds. Views of responsible official and planned corrective ations:The County Treasurer will gain online access to all bank statements via the online banking platform. The County Judge will prepare a memo to present to all departments that deposit cash to notify the County Treasurer when there is a large, unexpected deposit that is to be made. In this case, the County Treasurer or her assistant, if she is not available, will notify the bank of the large deposit in order to ensure that all funds are covered by pledged securities. In addition to the controls being put in place, the Bank has agreed to start sending monthly pledge reports to the County Treasurer to ensure that pledges are maintained in order to cover bank balances. The County Treasurer will review these reports monthly to ensure compliance.
Finding 2021-002
Criteria: In accordance with federal regulations (Uniform Guidance 2 CFR 200), recipients of federal awards are required to submit their single audit within the stipulated timeframe, usually nine months after the end of the fiscal year. Condition: During the 2021 audit, it was identified that the organization failed to submit its single audit report for the fiscal year ending December 31, 2021 within the required timeframe, which is a violation of the Uniform Guidance requirements. Effect: The late submission of the single audit report has resulted in a breach of compliance with federal regulations. This non-compliance has the potential to disallow funding from federal agencies. Cause: The delay in submitting the single audit report was primarily attributed to a change in auditor with little notice and the search for a replacement auditor took longer than expected. Recommendation: We recommend the County develop a system of monitoring grant requirements and establish a timeline for meeting deadlines related to reporting in compliance with the Uniform Guidance. Views of responsible official and planned corrective actions: The County will begin tracking grant receipts and expenditures through the County Judge’s office and put checks and balances in place with duplicate tracking by the County Treasurer. Grants will be tracked in an excel spreadsheet by State and Federal grant expenditures to ensure that the County is overseeing grants in a way that it will be prepared in the event that a single audit is triggered in any given year.
Finding 2021-001
Criteria: In accordance with Texas Government Code Title 10, Subtitle F, Chapter 2257, a deposit of public funds shall be secured by eligible securities to the extent and in the manner required by Government Code. Condition: During the 2021 audit of cash balances, instances of uncollateralized deposits were discovered as stated in Note 4 of the Notes to Financial Statements. Effect: Public funds are not collateralized due to County funds exceeding FDIC insurance coverage and pledged securities were not sufficient to cover the remaining balance. Cause: County Treasurer does not have access to review bank balances for all funds in custody of the County. Recommendation: We recommend the County review bank balances and maintain pledged securities sufficient to cover all deposits of public funds. Views of responsible official and planned corrective ations:The County Treasurer will gain online access to all bank statements via the online banking platform. The County Judge will prepare a memo to present to all departments that deposit cash to notify the County Treasurer when there is a large, unexpected deposit that is to be made. In this case, the County Treasurer or her assistant, if she is not available, will notify the bank of the large deposit in order to ensure that all funds are covered by pledged securities. In addition to the controls being put in place, the Bank has agreed to start sending monthly pledge reports to the County Treasurer to ensure that pledges are maintained in order to cover bank balances. The County Treasurer will review these reports monthly to ensure compliance.
Finding 2021-002
Criteria: In accordance with federal regulations (Uniform Guidance 2 CFR 200), recipients of federal awards are required to submit their single audit within the stipulated timeframe, usually nine months after the end of the fiscal year. Condition: During the 2021 audit, it was identified that the organization failed to submit its single audit report for the fiscal year ending December 31, 2021 within the required timeframe, which is a violation of the Uniform Guidance requirements. Effect: The late submission of the single audit report has resulted in a breach of compliance with federal regulations. This non-compliance has the potential to disallow funding from federal agencies. Cause: The delay in submitting the single audit report was primarily attributed to a change in auditor with little notice and the search for a replacement auditor took longer than expected. Recommendation: We recommend the County develop a system of monitoring grant requirements and establish a timeline for meeting deadlines related to reporting in compliance with the Uniform Guidance. Views of responsible official and planned corrective actions: The County will begin tracking grant receipts and expenditures through the County Judge’s office and put checks and balances in place with duplicate tracking by the County Treasurer. Grants will be tracked in an excel spreadsheet by State and Federal grant expenditures to ensure that the County is overseeing grants in a way that it will be prepared in the event that a single audit is triggered in any given year.