Audit 14975

FY End
2023-06-30
Total Expended
$14.20M
Findings
8
Programs
12
Year: 2023 Accepted: 2024-02-01

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
11172 2023-001 Significant Deficiency Yes I
11173 2023-001 Significant Deficiency Yes I
11174 2023-001 Significant Deficiency Yes I
11175 2023-001 Significant Deficiency Yes I
587614 2023-001 Significant Deficiency Yes I
587615 2023-001 Significant Deficiency Yes I
587616 2023-001 Significant Deficiency Yes I
587617 2023-001 Significant Deficiency Yes I

Contacts

Name Title Type
H3FVKV1KDVW5 Sussan Durham Auditee
3027443282 Jonathan Griffin Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable 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: N Rate Explanation: The County did not elect to use the 10% De Minimis cost rate for indirect costs. For the year ended June 30, 2023, there were no indirect costs included in the schedule of expenditures of federal awards. The accompanying Schedule of Expenditures of Federal Awards includes Federal grant activity of Kent County, Delaware (the County) and is presented on the modified accrual basis of accounting. Matching funds are excluded from the schedule and the Program Income generated from Federal Grants is classified as Federal Expenditures when spent. The information on this schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable 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: N Rate Explanation: The County did not elect to use the 10% De Minimis cost rate for indirect costs. For the year ended June 30, 2023, there were no indirect costs included in the schedule of expenditures of federal awards. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable 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: Note 3: Loans Oustanding Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable 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: N Rate Explanation: The County did not elect to use the 10% De Minimis cost rate for indirect costs. For the year ended June 30, 2023, there were no indirect costs included in the schedule of expenditures of federal awards. During fiscal year 2020, the County was awarded $1,023,000 in loan proceeds from the Delaware Department of Natural Resources and Environmental Control, Delaware Water Pollution Control Revolving Fund, for the Air Blower Optimization project under the Capitalization Grants for Clean Water State Revolving Funds Program (ALN #66.458). This loan is not fully drawn down, and expenditures related to it in the amount of $175,985 are reflected in the schedule of expenditures of federal awards. The loan balance at June 30, 2023 was $731,786 ($609,797 or 83.33 percent federal funds and $121,989 or 16.67 percent state funds). During fiscal year 2021, the County was awarded $1,640,000 in loan proceeds from the Delaware Department of Natural Resources and Environmental Control, Delaware Water Pollution Control Revolving Fund, for the Plant-Wide Power Backup project under the Capitalization Grants for Clean Water State Revolving Funds Program (ALN #66.458). This loan is not fully drawn down, and expenditures related to it in the amount of $130,147 are reflected in the schedule of expenditures of federal awards. The loan balance at June 30, 2023 was $1,215,417 ($1,012,807 or 83.33 percent federal funds and $202,610 or 16.67 percent state funds). During fiscal year 2023, the County was awarded $17,000,000 in loan proceeds from the Delaware Department of Natural Resources and Environmental Control, Delaware Water Pollution Control Revolving Fund, for the Biosolids Capacity Expansion project under the Capitalization Grants for Clean Water State Revolving Funds Program (ALN #66.458). This loan is not fully drawn down, and expenditures related to it in the amount of $679,930 are reflected in the schedule of expenditures of federal awards. The loan balance at June 30, 2023 was $815,948 ($679,930 or 83.33 percent federal funds and $136,018 or 16.67 percent state funds).
Title: Note 4: Indirect Costs Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable 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: N Rate Explanation: The County did not elect to use the 10% De Minimis cost rate for indirect costs. For the year ended June 30, 2023, there were no indirect costs included in the schedule of expenditures of federal awards. The County did not elect to use the 10% De Minimis cost rate for indirect costs. For the year ended June 30, 2023, there were no indirect costs included in the schedule of expenditures of federal awards.
Title: Note 5: Noncash Awards Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable 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: N Rate Explanation: The County did not elect to use the 10% De Minimis cost rate for indirect costs. For the year ended June 30, 2023, there were no indirect costs included in the schedule of expenditures of federal awards. The amount of equipment and supplies reported on the schedule is the value of the item based on the agencies acquisition price.

Finding Details

Reference Number: 2023-001 Prior Year Finding: Yes Federal Agency: U.S. Department of the Treasury & U.S. Environmental Protection Agency Federal Program: Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan Act) & Clean Water State Revolving Funds Assistance Listing Number: 21.027 & 66.458 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: 2 CFR 200.213 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person (7) Distribution of work to individuals and firms or economic considerations. Control: Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County could not provide supporting documentation that suspension and debarment status was determined prior to award. Context: The suspension and debarment status for three out of eight vendors was not documented related to the Coronavirus State and Local Fiscal Recovery Funds program. The suspension and debarment status for four out of five vendors was not documented related to the Clean Water State Revolving Funds program. Questioned costs: There are no questioned costs related to this finding as the vendors were not federally suspended or debarred. Cause: The County did not establish effective internal controls over suspension and debarment transactions. Effect: The County is not in compliance with federal suspension and debarment regulations. Recommendation: The County should ensure they maintain audit documentation to support their review of suspension and debarment status. Views of responsible officials: The County does check Sam.gov for suspension and debarment transactions. Documentation was retained, but was lost due to a network intrusion. We will remain diligent in documenting our reviews.
Reference Number: 2023-001 Prior Year Finding: Yes Federal Agency: U.S. Department of the Treasury & U.S. Environmental Protection Agency Federal Program: Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan Act) & Clean Water State Revolving Funds Assistance Listing Number: 21.027 & 66.458 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: 2 CFR 200.213 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person (7) Distribution of work to individuals and firms or economic considerations. Control: Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County could not provide supporting documentation that suspension and debarment status was determined prior to award. Context: The suspension and debarment status for three out of eight vendors was not documented related to the Coronavirus State and Local Fiscal Recovery Funds program. The suspension and debarment status for four out of five vendors was not documented related to the Clean Water State Revolving Funds program. Questioned costs: There are no questioned costs related to this finding as the vendors were not federally suspended or debarred. Cause: The County did not establish effective internal controls over suspension and debarment transactions. Effect: The County is not in compliance with federal suspension and debarment regulations. Recommendation: The County should ensure they maintain audit documentation to support their review of suspension and debarment status. Views of responsible officials: The County does check Sam.gov for suspension and debarment transactions. Documentation was retained, but was lost due to a network intrusion. We will remain diligent in documenting our reviews.
Reference Number: 2023-001 Prior Year Finding: Yes Federal Agency: U.S. Department of the Treasury & U.S. Environmental Protection Agency Federal Program: Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan Act) & Clean Water State Revolving Funds Assistance Listing Number: 21.027 & 66.458 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: 2 CFR 200.213 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person (7) Distribution of work to individuals and firms or economic considerations. Control: Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County could not provide supporting documentation that suspension and debarment status was determined prior to award. Context: The suspension and debarment status for three out of eight vendors was not documented related to the Coronavirus State and Local Fiscal Recovery Funds program. The suspension and debarment status for four out of five vendors was not documented related to the Clean Water State Revolving Funds program. Questioned costs: There are no questioned costs related to this finding as the vendors were not federally suspended or debarred. Cause: The County did not establish effective internal controls over suspension and debarment transactions. Effect: The County is not in compliance with federal suspension and debarment regulations. Recommendation: The County should ensure they maintain audit documentation to support their review of suspension and debarment status. Views of responsible officials: The County does check Sam.gov for suspension and debarment transactions. Documentation was retained, but was lost due to a network intrusion. We will remain diligent in documenting our reviews.
Reference Number: 2023-001 Prior Year Finding: Yes Federal Agency: U.S. Department of the Treasury & U.S. Environmental Protection Agency Federal Program: Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan Act) & Clean Water State Revolving Funds Assistance Listing Number: 21.027 & 66.458 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: 2 CFR 200.213 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person (7) Distribution of work to individuals and firms or economic considerations. Control: Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County could not provide supporting documentation that suspension and debarment status was determined prior to award. Context: The suspension and debarment status for three out of eight vendors was not documented related to the Coronavirus State and Local Fiscal Recovery Funds program. The suspension and debarment status for four out of five vendors was not documented related to the Clean Water State Revolving Funds program. Questioned costs: There are no questioned costs related to this finding as the vendors were not federally suspended or debarred. Cause: The County did not establish effective internal controls over suspension and debarment transactions. Effect: The County is not in compliance with federal suspension and debarment regulations. Recommendation: The County should ensure they maintain audit documentation to support their review of suspension and debarment status. Views of responsible officials: The County does check Sam.gov for suspension and debarment transactions. Documentation was retained, but was lost due to a network intrusion. We will remain diligent in documenting our reviews.
Reference Number: 2023-001 Prior Year Finding: Yes Federal Agency: U.S. Department of the Treasury & U.S. Environmental Protection Agency Federal Program: Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan Act) & Clean Water State Revolving Funds Assistance Listing Number: 21.027 & 66.458 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: 2 CFR 200.213 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person (7) Distribution of work to individuals and firms or economic considerations. Control: Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County could not provide supporting documentation that suspension and debarment status was determined prior to award. Context: The suspension and debarment status for three out of eight vendors was not documented related to the Coronavirus State and Local Fiscal Recovery Funds program. The suspension and debarment status for four out of five vendors was not documented related to the Clean Water State Revolving Funds program. Questioned costs: There are no questioned costs related to this finding as the vendors were not federally suspended or debarred. Cause: The County did not establish effective internal controls over suspension and debarment transactions. Effect: The County is not in compliance with federal suspension and debarment regulations. Recommendation: The County should ensure they maintain audit documentation to support their review of suspension and debarment status. Views of responsible officials: The County does check Sam.gov for suspension and debarment transactions. Documentation was retained, but was lost due to a network intrusion. We will remain diligent in documenting our reviews.
Reference Number: 2023-001 Prior Year Finding: Yes Federal Agency: U.S. Department of the Treasury & U.S. Environmental Protection Agency Federal Program: Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan Act) & Clean Water State Revolving Funds Assistance Listing Number: 21.027 & 66.458 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: 2 CFR 200.213 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person (7) Distribution of work to individuals and firms or economic considerations. Control: Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County could not provide supporting documentation that suspension and debarment status was determined prior to award. Context: The suspension and debarment status for three out of eight vendors was not documented related to the Coronavirus State and Local Fiscal Recovery Funds program. The suspension and debarment status for four out of five vendors was not documented related to the Clean Water State Revolving Funds program. Questioned costs: There are no questioned costs related to this finding as the vendors were not federally suspended or debarred. Cause: The County did not establish effective internal controls over suspension and debarment transactions. Effect: The County is not in compliance with federal suspension and debarment regulations. Recommendation: The County should ensure they maintain audit documentation to support their review of suspension and debarment status. Views of responsible officials: The County does check Sam.gov for suspension and debarment transactions. Documentation was retained, but was lost due to a network intrusion. We will remain diligent in documenting our reviews.
Reference Number: 2023-001 Prior Year Finding: Yes Federal Agency: U.S. Department of the Treasury & U.S. Environmental Protection Agency Federal Program: Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan Act) & Clean Water State Revolving Funds Assistance Listing Number: 21.027 & 66.458 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: 2 CFR 200.213 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person (7) Distribution of work to individuals and firms or economic considerations. Control: Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County could not provide supporting documentation that suspension and debarment status was determined prior to award. Context: The suspension and debarment status for three out of eight vendors was not documented related to the Coronavirus State and Local Fiscal Recovery Funds program. The suspension and debarment status for four out of five vendors was not documented related to the Clean Water State Revolving Funds program. Questioned costs: There are no questioned costs related to this finding as the vendors were not federally suspended or debarred. Cause: The County did not establish effective internal controls over suspension and debarment transactions. Effect: The County is not in compliance with federal suspension and debarment regulations. Recommendation: The County should ensure they maintain audit documentation to support their review of suspension and debarment status. Views of responsible officials: The County does check Sam.gov for suspension and debarment transactions. Documentation was retained, but was lost due to a network intrusion. We will remain diligent in documenting our reviews.
Reference Number: 2023-001 Prior Year Finding: Yes Federal Agency: U.S. Department of the Treasury & U.S. Environmental Protection Agency Federal Program: Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan Act) & Clean Water State Revolving Funds Assistance Listing Number: 21.027 & 66.458 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: 2 CFR 200.213 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person (7) Distribution of work to individuals and firms or economic considerations. Control: Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County could not provide supporting documentation that suspension and debarment status was determined prior to award. Context: The suspension and debarment status for three out of eight vendors was not documented related to the Coronavirus State and Local Fiscal Recovery Funds program. The suspension and debarment status for four out of five vendors was not documented related to the Clean Water State Revolving Funds program. Questioned costs: There are no questioned costs related to this finding as the vendors were not federally suspended or debarred. Cause: The County did not establish effective internal controls over suspension and debarment transactions. Effect: The County is not in compliance with federal suspension and debarment regulations. Recommendation: The County should ensure they maintain audit documentation to support their review of suspension and debarment status. Views of responsible officials: The County does check Sam.gov for suspension and debarment transactions. Documentation was retained, but was lost due to a network intrusion. We will remain diligent in documenting our reviews.