FAC Explorer

Audit 15909

FY End
2022-12-31
Total Expended
$2.44M
Findings
2
Programs
11
Organization: Garfield County (WA)
Year: 2022 Accepted: 2024-02-06
Auditor: Office of the Washington State Auditor

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11947 2022-002 Material Weakness - I
588389 2022-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Covid 19 - Coronavirus State and Local Fiscal Recovery Funds $223,293 Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $155,675 - 0
16.575 Crime Victim Assistance $55,421 - 0
97.042 Emergency Management Performance Grants $39,437 - 0
97.067 Homeland Security Grant Program $22,622 - 0
20.205 Highway Planning and Construction $8,084 Yes 0
45.310 Covid 19 - Grants to States $3,690 - 0
90.404 2018 Hava Election Security Grants $2,819 - 0
16.588 Violence Against Women Formula Grants $1,698 - 0
20.600 State and Community Highway Safety $1,005 - 0
16.833 National Sexual Assault Kit Initiative $937 - 0

Contacts

Name Title Type
EJJFTHEDDFN9 McKenzie Lueck Auditee
5098431411 Alisha Shaw Auditor
No contacts on file

Notes to SEFA

Title: Note 3 – Program Costs Accounting Policies: Note 1 – Basis of Accounting This Schedule is prepared on the same basis of accounting as the county’s financial statements. The county uses a cash basis accounting method wherein each fund is considered a separate accounting entity with a set of self-balancing accounts. De Minimis Rate Used: N Rate Explanation: Note 2 – Federal Indirect Cost Rate The county has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. . The amount expended for the LSTA State Library Program, number G-7286, includes $656 claimed as an indirect cost recovery using an approved indirect cost rate of 10 percent. The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the county’s portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 4 – Prior year expenditures Accounting Policies: Note 1 – Basis of Accounting This Schedule is prepared on the same basis of accounting as the county’s financial statements. The county uses a cash basis accounting method wherein each fund is considered a separate accounting entity with a set of self-balancing accounts. De Minimis Rate Used: N Rate Explanation: Note 2 – Federal Indirect Cost Rate The county has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. . The amount expended for the LSTA State Library Program, number G-7286, includes $656 claimed as an indirect cost recovery using an approved indirect cost rate of 10 percent. ALN Number 97.036 includes $155,675 of costs from 2021 that were reported on 2022’s SEFA once the project worksheet was approved by the grantor.

Finding Details

Finding 2022-002
SCHEDULE OF FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Garfield County January 1, 2022 through December 31, 2022 2022-002 The County did not have adequate internal controls for ensuring compliance with federal suspension and debarment requirements. Assistance Listing Number and Title: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Grantor Name: U.S. Department of the Treasury Federal Award/Contract Number: N/A Pass-through Entity Name: N/A Pass-through Award/Contract Number: N/A Known Questioned Cost Amount: $0 Prior Year Audit Finding: N/A Description of Condition The purpose of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program is to respond to the COVID-19 pandemic’s negative effects on public health and the economy, provide premium pay to essential workers during the pandemic, provide government services to the extent COVID-19 caused a reduction in revenues collected, and make necessary investments in water, sewer, or broadband infrastructure. In 2022, the County spent $223,293 in program funds. Federal regulations require recipients to establish and follow internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Federal requirements prohibit recipients from contracting with or purchasing from parties suspended or debarred from doing business with the federal government. Whenever the County enters into contracts or purchases goods or services that it expects to equal or exceed $25,000, paid all or in part with federal funds, it must verify that the contractors have not been suspended, debarred, or otherwise excluded. The County may accomplish this verification by obtaining a written certification from the contractor, adding a clause or condition into the contract that states the contractor is not suspended or debarred, or checking for exclusion records in the U.S. General Services Administration’s System for Award Management at SAM.gov. The County must perform this verification before entering into the contract, and it must maintain documentation demonstrating compliance with this federal requirement. Our audit found the County’s controls were ineffective for ensuring that staff verified all parties receiving $25,000 or more in federal funds were not suspended or debarred. Specifically, in 2022 the County paid two contractors more than $25,000 and did not have documentation demonstrating it verified they were not suspended or debarred before entering into contracts or purchasing. We consider this deficiency in internal controls to be a material weakness, which led to material noncompliance. Cause of Condition Although County staff were aware of the requirement, they could not locate the documents showing they verified contractors' suspension and debarment status. Effect of Condition Without adequate internal controls, the County increases its risk of awarding federal funds to contractors that are excluded from participating in federal programs. Any payments the County made to an ineligible party would be unallowable, and the federal agency could potentially recover them. The County subsequently verified the contractors were not suspended or debarred. Therefore, we are not questioning costs. Recommendation We recommend the County improve its internal controls to ensure it verifies all contractors paid $25,000 or more, all or in part with federal funds, are not suspended or debarred, and maintain documentation demonstrating compliance with this requirement. County’s Response Due to turnover of key management and staff, Garfield County was unable to locate the debarment and suspension paperwork required for two purchases made with federal grant funds in 2022. Garfield County’s management and key staff who help in managing federal funding have become educated on the compliance requirements of federal suspension and debarment. Management and key staff have reviewed requirements listed on the State Auditor’s website and will continue to review federal funding requirements while administering federal grants. Auditor’s Remarks We appreciate the County’s commitment to resolving this finding and thank the County for its cooperation and assistance during the audit. We will review the corrective action taken during our next regular audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), establishes nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689.
Finding 2022-002
SCHEDULE OF FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Garfield County January 1, 2022 through December 31, 2022 2022-002 The County did not have adequate internal controls for ensuring compliance with federal suspension and debarment requirements. Assistance Listing Number and Title: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Grantor Name: U.S. Department of the Treasury Federal Award/Contract Number: N/A Pass-through Entity Name: N/A Pass-through Award/Contract Number: N/A Known Questioned Cost Amount: $0 Prior Year Audit Finding: N/A Description of Condition The purpose of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program is to respond to the COVID-19 pandemic’s negative effects on public health and the economy, provide premium pay to essential workers during the pandemic, provide government services to the extent COVID-19 caused a reduction in revenues collected, and make necessary investments in water, sewer, or broadband infrastructure. In 2022, the County spent $223,293 in program funds. Federal regulations require recipients to establish and follow internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of established controls. Federal requirements prohibit recipients from contracting with or purchasing from parties suspended or debarred from doing business with the federal government. Whenever the County enters into contracts or purchases goods or services that it expects to equal or exceed $25,000, paid all or in part with federal funds, it must verify that the contractors have not been suspended, debarred, or otherwise excluded. The County may accomplish this verification by obtaining a written certification from the contractor, adding a clause or condition into the contract that states the contractor is not suspended or debarred, or checking for exclusion records in the U.S. General Services Administration’s System for Award Management at SAM.gov. The County must perform this verification before entering into the contract, and it must maintain documentation demonstrating compliance with this federal requirement. Our audit found the County’s controls were ineffective for ensuring that staff verified all parties receiving $25,000 or more in federal funds were not suspended or debarred. Specifically, in 2022 the County paid two contractors more than $25,000 and did not have documentation demonstrating it verified they were not suspended or debarred before entering into contracts or purchasing. We consider this deficiency in internal controls to be a material weakness, which led to material noncompliance. Cause of Condition Although County staff were aware of the requirement, they could not locate the documents showing they verified contractors' suspension and debarment status. Effect of Condition Without adequate internal controls, the County increases its risk of awarding federal funds to contractors that are excluded from participating in federal programs. Any payments the County made to an ineligible party would be unallowable, and the federal agency could potentially recover them. The County subsequently verified the contractors were not suspended or debarred. Therefore, we are not questioning costs. Recommendation We recommend the County improve its internal controls to ensure it verifies all contractors paid $25,000 or more, all or in part with federal funds, are not suspended or debarred, and maintain documentation demonstrating compliance with this requirement. County’s Response Due to turnover of key management and staff, Garfield County was unable to locate the debarment and suspension paperwork required for two purchases made with federal grant funds in 2022. Garfield County’s management and key staff who help in managing federal funding have become educated on the compliance requirements of federal suspension and debarment. Management and key staff have reviewed requirements listed on the State Auditor’s website and will continue to review federal funding requirements while administering federal grants. Auditor’s Remarks We appreciate the County’s commitment to resolving this finding and thank the County for its cooperation and assistance during the audit. We will review the corrective action taken during our next regular audit. Applicable Laws and Regulations Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), establishes nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689.