Audit 240

FY End
2022-06-30
Total Expended
$6.36M
Findings
8
Programs
32
Organization: Santa Cruz County (AZ)
Year: 2022 Accepted: 2023-10-06

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
161 2022-101 Material Weakness - G
162 2022-101 Material Weakness - G
163 2022-101 Material Weakness - G
164 2022-102 Material Weakness - ABCL
576603 2022-101 Material Weakness - G
576604 2022-101 Material Weakness - G
576605 2022-101 Material Weakness - G
576606 2022-102 Material Weakness - ABCL

Programs

ALN Program Spent Major Findings
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $788,255 Yes 1
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $696,749 - 0
97.067 Homeland Security Grant Program $641,751 - 0
14.228 Covid-19 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $459,197 - 0
95.001 High Intensity Drug Trafficking Areas Program $450,347 - 0
17.259 Wia Youth Activities $440,088 Yes 1
93.268 Immunization Cooperative Agreements $351,029 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $304,565 Yes 0
10.665 Schools and Roads - Grants to States $287,841 - 0
17.258 Wia Adult Program $258,351 Yes 1
93.069 Public Health Emergency Preparedness $246,952 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $225,673 - 0
17.278 Wia Dislocated Worker Formula Grants $225,269 Yes 1
16.839 Stop School Violence $189,178 - 0
84.002 Adult Education - Basic Grants to States $148,899 - 0
97.042 Emergency Management Performance Grants $101,607 - 0
93.563 Child Support Enforcement $98,979 - 0
16.606 State Criminal Alien Assistance Program $93,351 - 0
16.585 Drug Court Discretionary Grant Program $60,618 - 0
10.351 Rural Business Development Grant $41,750 - 0
93.103 Food and Drug Administration_research $41,665 - 0
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $40,871 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $38,367 - 0
17.268 H-1b Job Training Grants $33,706 - 0
20.600 State and Community Highway Safety $30,739 - 0
84.425 Education Stabilization Fund $23,740 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $8,060 - 0
93.667 Social Services Block Grant $7,956 - 0
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $7,450 - 0
84.027 Special Education_grants to States $1,014 - 0
90.404 2018 Hava Election Security Grants $329 - 0
84.027 Covid-19 Special Education_grants to States $33 - 0

Contacts

Name Title Type
UVLVR8CN2FM4 Mauricio Chavez Auditee
5203757820 Michael P. Manion, CPA Auditor
No contacts on file

Notes to SEFA

Title: 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: Y Rate Explanation: The County elected to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The accompanying schedule of expenditures of federal awards (schedule) includes Santa Cruz County's federal grant activity for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Title: Federal Assistance Listings number 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: Y Rate Explanation: The County elected to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The program titles and Federal Assistance Listings numbers were obtained from the federal or pass-through grantor or the 2022 Federal Assistance Listings.

Finding Details

Condition—Contrary to federal regulation, the County’s Workforce Development Department (Department) failed to ensure that it spent the required 75 percent, or $289,562, of WIOA Youth Activities monies earmarked to provide services to out-of-school youth from April 2020 through June 2022. Instead, the Department spent only 45 percent, or $175,338, of the required 75 percent and spent the remaining 30 percent, or $114,224, to provide services to in-school youth, which was an allowable activity for the program but did not meet the earmarking requirements. Criteria—Federal regulation requires the Department to earmark and spend no less than 75 percent of its WIOA Youth Activities monies on out-of-school youth services. Additionally, federal regulation also requires the Department to monitor such expenditures and report them to the pass-through grantor monthly throughout the award period to ensure it is spending the monies in a timely manner to meet the earmarking requirement (20 CFR §681.410). Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Cause—The Department used a tracking mechanism to report its in-school youth and out-of-school youth spending throughout the fiscal year but did not have written policies and procedures requiring it to properly monitor and adjust its spending to provide in-school and out-of-school youth services to ensure earmarking requirements are met during the fiscal year and throughout the award period. Also, the Department reported that, due to the demographic constraints within the County, it did not have an effective strategy to recruit and retain qualified out-of-school youth who would benefit from the federal program services. Effect—County out-of-school youth did not receive the $114,224 in services that the federal program intended. Recommendations—The Department should: 1. Spend no less than the required 75 percent of its WIOA Youth Activities monies to provide out-of-school youth services. 2. Develop written policies and procedures for its WIOA Youth Activities program to: a. Work with the pass-through grantor or federal agency to develop an effective strategy to recruit and retain qualified out-of-school youth who will benefit from program services. b. Monitor its out-of-school services spending throughout the fiscal year and award period. c. Adjust spending to meet the earmarking requirement if out-of-school youth participation is lower than expected. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.
Condition—Contrary to federal regulation, the County’s Workforce Development Department (Department) failed to ensure that it spent the required 75 percent, or $289,562, of WIOA Youth Activities monies earmarked to provide services to out-of-school youth from April 2020 through June 2022. Instead, the Department spent only 45 percent, or $175,338, of the required 75 percent and spent the remaining 30 percent, or $114,224, to provide services to in-school youth, which was an allowable activity for the program but did not meet the earmarking requirements. Criteria—Federal regulation requires the Department to earmark and spend no less than 75 percent of its WIOA Youth Activities monies on out-of-school youth services. Additionally, federal regulation also requires the Department to monitor such expenditures and report them to the pass-through grantor monthly throughout the award period to ensure it is spending the monies in a timely manner to meet the earmarking requirement (20 CFR §681.410). Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Cause—The Department used a tracking mechanism to report its in-school youth and out-of-school youth spending throughout the fiscal year but did not have written policies and procedures requiring it to properly monitor and adjust its spending to provide in-school and out-of-school youth services to ensure earmarking requirements are met during the fiscal year and throughout the award period. Also, the Department reported that, due to the demographic constraints within the County, it did not have an effective strategy to recruit and retain qualified out-of-school youth who would benefit from the federal program services. Effect—County out-of-school youth did not receive the $114,224 in services that the federal program intended. Recommendations—The Department should: 1. Spend no less than the required 75 percent of its WIOA Youth Activities monies to provide out-of-school youth services. 2. Develop written policies and procedures for its WIOA Youth Activities program to: a. Work with the pass-through grantor or federal agency to develop an effective strategy to recruit and retain qualified out-of-school youth who will benefit from program services. b. Monitor its out-of-school services spending throughout the fiscal year and award period. c. Adjust spending to meet the earmarking requirement if out-of-school youth participation is lower than expected. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.
Condition—Contrary to federal regulation, the County’s Workforce Development Department (Department) failed to ensure that it spent the required 75 percent, or $289,562, of WIOA Youth Activities monies earmarked to provide services to out-of-school youth from April 2020 through June 2022. Instead, the Department spent only 45 percent, or $175,338, of the required 75 percent and spent the remaining 30 percent, or $114,224, to provide services to in-school youth, which was an allowable activity for the program but did not meet the earmarking requirements. Criteria—Federal regulation requires the Department to earmark and spend no less than 75 percent of its WIOA Youth Activities monies on out-of-school youth services. Additionally, federal regulation also requires the Department to monitor such expenditures and report them to the pass-through grantor monthly throughout the award period to ensure it is spending the monies in a timely manner to meet the earmarking requirement (20 CFR §681.410). Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Cause—The Department used a tracking mechanism to report its in-school youth and out-of-school youth spending throughout the fiscal year but did not have written policies and procedures requiring it to properly monitor and adjust its spending to provide in-school and out-of-school youth services to ensure earmarking requirements are met during the fiscal year and throughout the award period. Also, the Department reported that, due to the demographic constraints within the County, it did not have an effective strategy to recruit and retain qualified out-of-school youth who would benefit from the federal program services. Effect—County out-of-school youth did not receive the $114,224 in services that the federal program intended. Recommendations—The Department should: 1. Spend no less than the required 75 percent of its WIOA Youth Activities monies to provide out-of-school youth services. 2. Develop written policies and procedures for its WIOA Youth Activities program to: a. Work with the pass-through grantor or federal agency to develop an effective strategy to recruit and retain qualified out-of-school youth who will benefit from program services. b. Monitor its out-of-school services spending throughout the fiscal year and award period. c. Adjust spending to meet the earmarking requirement if out-of-school youth participation is lower than expected. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.
Condition—Contrary to the County’s award terms with the Arizona Department of Health Services (ADHS), the County’s Health Services Department (Department) requested and received reimbursement of federal program monies related to the County’s Border Region Partnership award (award number CTR057133 for the period of December 1, 2021 through May 1, 2022) for services it did not provide and for which it was ineligible to be reimbursed. Specifically, the Department requested and received reimbursement totaling $83,330 when its records reflected that it incurred only $16,346 in program expenditures during the award period and during the fiscal year. Effect—The Department received $66,984 of federal program monies for which it did not provide services, such as vaccinations and related education services to the Arizona border region’s residents. As a result, Arizona’s border residents may not have received needed services that these monies could have provided. Further, the County may be required to repay these monies to ADHS. We extended auditing procedures and determined that these questioned costs affected only the County’s Border Region Partnership award, representing approximately 8 percent of the County’s total program expenditures of $788,255 for fiscal year 2022. Cause—County management reported that it misinterpreted the award’s payments arrangements, which it believed to be made on a monthly fixed-price basis regardless of the number of service units the County provided and subsequently received reimbursement for $83,330 during the award’s 6-month term, rather than requesting and being paid for the actual number of service units provided. Additionally, the County lacked written policies and procedures for the Department to follow to record or prepare and maintain documentation supporting the number of service units the Department provided under the award. Criteria—The County’s Border Region Partnership award agreement with ADHS specified it was a cost-reimbursement award with a fixed price per service unit that required the County to be reimbursed based on the number of service units it provided. The monthly fixed price amount included in the award represented the maximum amount ADHS would pay the County for providing the services each month as long as the monthly reimbursement did not exceed that amount. Also, federal regulation requires the County to establish and maintain effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Recommendations—The County should: 1. Require the Department to request reimbursement of federal program monies for only those reasonable and allowable actual program costs it incurs that are funded on a cost-reimbursement basis. 2. Work with the pass-through grantor, ADHS, to repay award amounts the County received in excess of amounts it was eligible to receive. 3. Develop and implement written policies and procedures for recording the actual number of units of goods or services it provides when providing services under a federal award with fixed price per unit arrangements. These policies and procedures should include steps for departments to follow to document the support for costs when requesting reimbursement of federal program monies to help ensure that they request reimbursement for only actual costs incurred under federal programs. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.
Condition—Contrary to federal regulation, the County’s Workforce Development Department (Department) failed to ensure that it spent the required 75 percent, or $289,562, of WIOA Youth Activities monies earmarked to provide services to out-of-school youth from April 2020 through June 2022. Instead, the Department spent only 45 percent, or $175,338, of the required 75 percent and spent the remaining 30 percent, or $114,224, to provide services to in-school youth, which was an allowable activity for the program but did not meet the earmarking requirements. Criteria—Federal regulation requires the Department to earmark and spend no less than 75 percent of its WIOA Youth Activities monies on out-of-school youth services. Additionally, federal regulation also requires the Department to monitor such expenditures and report them to the pass-through grantor monthly throughout the award period to ensure it is spending the monies in a timely manner to meet the earmarking requirement (20 CFR §681.410). Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Cause—The Department used a tracking mechanism to report its in-school youth and out-of-school youth spending throughout the fiscal year but did not have written policies and procedures requiring it to properly monitor and adjust its spending to provide in-school and out-of-school youth services to ensure earmarking requirements are met during the fiscal year and throughout the award period. Also, the Department reported that, due to the demographic constraints within the County, it did not have an effective strategy to recruit and retain qualified out-of-school youth who would benefit from the federal program services. Effect—County out-of-school youth did not receive the $114,224 in services that the federal program intended. Recommendations—The Department should: 1. Spend no less than the required 75 percent of its WIOA Youth Activities monies to provide out-of-school youth services. 2. Develop written policies and procedures for its WIOA Youth Activities program to: a. Work with the pass-through grantor or federal agency to develop an effective strategy to recruit and retain qualified out-of-school youth who will benefit from program services. b. Monitor its out-of-school services spending throughout the fiscal year and award period. c. Adjust spending to meet the earmarking requirement if out-of-school youth participation is lower than expected. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.
Condition—Contrary to federal regulation, the County’s Workforce Development Department (Department) failed to ensure that it spent the required 75 percent, or $289,562, of WIOA Youth Activities monies earmarked to provide services to out-of-school youth from April 2020 through June 2022. Instead, the Department spent only 45 percent, or $175,338, of the required 75 percent and spent the remaining 30 percent, or $114,224, to provide services to in-school youth, which was an allowable activity for the program but did not meet the earmarking requirements. Criteria—Federal regulation requires the Department to earmark and spend no less than 75 percent of its WIOA Youth Activities monies on out-of-school youth services. Additionally, federal regulation also requires the Department to monitor such expenditures and report them to the pass-through grantor monthly throughout the award period to ensure it is spending the monies in a timely manner to meet the earmarking requirement (20 CFR §681.410). Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Cause—The Department used a tracking mechanism to report its in-school youth and out-of-school youth spending throughout the fiscal year but did not have written policies and procedures requiring it to properly monitor and adjust its spending to provide in-school and out-of-school youth services to ensure earmarking requirements are met during the fiscal year and throughout the award period. Also, the Department reported that, due to the demographic constraints within the County, it did not have an effective strategy to recruit and retain qualified out-of-school youth who would benefit from the federal program services. Effect—County out-of-school youth did not receive the $114,224 in services that the federal program intended. Recommendations—The Department should: 1. Spend no less than the required 75 percent of its WIOA Youth Activities monies to provide out-of-school youth services. 2. Develop written policies and procedures for its WIOA Youth Activities program to: a. Work with the pass-through grantor or federal agency to develop an effective strategy to recruit and retain qualified out-of-school youth who will benefit from program services. b. Monitor its out-of-school services spending throughout the fiscal year and award period. c. Adjust spending to meet the earmarking requirement if out-of-school youth participation is lower than expected. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.
Condition—Contrary to federal regulation, the County’s Workforce Development Department (Department) failed to ensure that it spent the required 75 percent, or $289,562, of WIOA Youth Activities monies earmarked to provide services to out-of-school youth from April 2020 through June 2022. Instead, the Department spent only 45 percent, or $175,338, of the required 75 percent and spent the remaining 30 percent, or $114,224, to provide services to in-school youth, which was an allowable activity for the program but did not meet the earmarking requirements. Criteria—Federal regulation requires the Department to earmark and spend no less than 75 percent of its WIOA Youth Activities monies on out-of-school youth services. Additionally, federal regulation also requires the Department to monitor such expenditures and report them to the pass-through grantor monthly throughout the award period to ensure it is spending the monies in a timely manner to meet the earmarking requirement (20 CFR §681.410). Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Cause—The Department used a tracking mechanism to report its in-school youth and out-of-school youth spending throughout the fiscal year but did not have written policies and procedures requiring it to properly monitor and adjust its spending to provide in-school and out-of-school youth services to ensure earmarking requirements are met during the fiscal year and throughout the award period. Also, the Department reported that, due to the demographic constraints within the County, it did not have an effective strategy to recruit and retain qualified out-of-school youth who would benefit from the federal program services. Effect—County out-of-school youth did not receive the $114,224 in services that the federal program intended. Recommendations—The Department should: 1. Spend no less than the required 75 percent of its WIOA Youth Activities monies to provide out-of-school youth services. 2. Develop written policies and procedures for its WIOA Youth Activities program to: a. Work with the pass-through grantor or federal agency to develop an effective strategy to recruit and retain qualified out-of-school youth who will benefit from program services. b. Monitor its out-of-school services spending throughout the fiscal year and award period. c. Adjust spending to meet the earmarking requirement if out-of-school youth participation is lower than expected. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.
Condition—Contrary to the County’s award terms with the Arizona Department of Health Services (ADHS), the County’s Health Services Department (Department) requested and received reimbursement of federal program monies related to the County’s Border Region Partnership award (award number CTR057133 for the period of December 1, 2021 through May 1, 2022) for services it did not provide and for which it was ineligible to be reimbursed. Specifically, the Department requested and received reimbursement totaling $83,330 when its records reflected that it incurred only $16,346 in program expenditures during the award period and during the fiscal year. Effect—The Department received $66,984 of federal program monies for which it did not provide services, such as vaccinations and related education services to the Arizona border region’s residents. As a result, Arizona’s border residents may not have received needed services that these monies could have provided. Further, the County may be required to repay these monies to ADHS. We extended auditing procedures and determined that these questioned costs affected only the County’s Border Region Partnership award, representing approximately 8 percent of the County’s total program expenditures of $788,255 for fiscal year 2022. Cause—County management reported that it misinterpreted the award’s payments arrangements, which it believed to be made on a monthly fixed-price basis regardless of the number of service units the County provided and subsequently received reimbursement for $83,330 during the award’s 6-month term, rather than requesting and being paid for the actual number of service units provided. Additionally, the County lacked written policies and procedures for the Department to follow to record or prepare and maintain documentation supporting the number of service units the Department provided under the award. Criteria—The County’s Border Region Partnership award agreement with ADHS specified it was a cost-reimbursement award with a fixed price per service unit that required the County to be reimbursed based on the number of service units it provided. The monthly fixed price amount included in the award represented the maximum amount ADHS would pay the County for providing the services each month as long as the monthly reimbursement did not exceed that amount. Also, federal regulation requires the County to establish and maintain effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Recommendations—The County should: 1. Require the Department to request reimbursement of federal program monies for only those reasonable and allowable actual program costs it incurs that are funded on a cost-reimbursement basis. 2. Work with the pass-through grantor, ADHS, to repay award amounts the County received in excess of amounts it was eligible to receive. 3. Develop and implement written policies and procedures for recording the actual number of units of goods or services it provides when providing services under a federal award with fixed price per unit arrangements. These policies and procedures should include steps for departments to follow to document the support for costs when requesting reimbursement of federal program monies to help ensure that they request reimbursement for only actual costs incurred under federal programs. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.