Audit 27038

FY End
2022-11-30
Total Expended
$22.12M
Findings
2
Programs
28
Organization: McHenry County (IL)
Year: 2022 Accepted: 2023-08-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
37416 2022-002 Significant Deficiency - I
613858 2022-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $7.59M Yes 1
21.023 Emergency Rental Assistance Program $1.38M Yes 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $288,823 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $258,115 - 0
93.268 Immunization Cooperative Agreements $228,959 - 0
14.267 Continuum of Care Program $169,416 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $166,848 - 0
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $151,909 - 0
93.498 Provider Relief Fund $127,623 - 0
93.276 Drug-Free Communities Support Program Grants $127,236 - 0
14.231 Emergency Solutions Grant Program $98,917 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $98,417 - 0
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $71,946 - 0
20.600 State and Community Highway Safety $65,156 - 0
16.922 Equitable Sharing Program $54,394 - 0
16.037 Strengthening the Medical Examiner - Coroner System $48,608 - 0
20.205 Highway Planning and Construction $47,715 - 0
14.239 Home Investment Partnerships Program $40,393 - 0
14.218 Community Development Block Grants/entitlement Grants $31,965 - 0
93.436 Well-Integrated Screening and Evaluation for Women Across the Nation (wisewoman) $31,714 - 0
17.245 Trade Adjustment Assistance $28,960 - 0
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $12,467 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $12,114 - 0
93.667 Social Services Block Grant $10,517 - 0
10.572 Wic Farmers' Market Nutrition Program (fmnp) $968 - 0
17.259 Wia Youth Activities $134 - 0
17.258 Wia Adult Program $131 - 0
17.278 Wia Dislocated Worker Formula Grants $121 - 0

Contacts

Name Title Type
DAJDARNBA5Y8 Kerri Wisz Auditee
8153344205 John Rader Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein 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 ofbusiness to amounts reported as expenditures in prior years. Pass-through entity identifying numbers arepresented where available.The underlying accounting records for some grant programs are maintained on the modified accrual basisof accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e.,both measurable and available. Available means collectible within the current period or soon enoughthereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability isincurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., whenthe revenue has been earned and the liability is incurred. De Minimis Rate Used: N Rate Explanation: The County of McHenry has not elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awardactivity of the County of McHenry under programs of the federal government for the year endedNovember 30, 2022. The information in this Schedule is presented in accordance with the requirementsof Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of the County of McHenry it is not intended to and doesnot present the financial position, changes in net position or cash flows of the County of McHenry.The County of McHenry is the primary government according to GASB criteria while the ConservationDistrict is a discretely presented component unit.The Conservation District was not required to have an audit in accordance with the Uniform Guidance.
Title: Noncash Payments Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein 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 ofbusiness to amounts reported as expenditures in prior years. Pass-through entity identifying numbers arepresented where available.The underlying accounting records for some grant programs are maintained on the modified accrual basisof accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e.,both measurable and available. Available means collectible within the current period or soon enoughthereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability isincurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., whenthe revenue has been earned and the liability is incurred. De Minimis Rate Used: N Rate Explanation: The County of McHenry has not elected to use the 10% de minimis indirect cost rate. The County receives vaccines at no charge from the Illinois Department of Public Health through federally assisted programs Immunization Grants (AL: 93.268). The value of vaccines received during the year ended November 30, 2022 was $211,587. Of this amount, $54,830 remained unused, and was included as inventory at November 30, 2022.
Title: Insurance and Loans or Loan Guarantee Programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein 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 ofbusiness to amounts reported as expenditures in prior years. Pass-through entity identifying numbers arepresented where available.The underlying accounting records for some grant programs are maintained on the modified accrual basisof accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e.,both measurable and available. Available means collectible within the current period or soon enoughthereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability isincurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., whenthe revenue has been earned and the liability is incurred. De Minimis Rate Used: N Rate Explanation: The County of McHenry has not elected to use the 10% de minimis indirect cost rate. During the year ended November 30, 2022, McHenry County received no insurance loans, loans or loan guarantees for the purpose of administering federal programs.

Finding Details

Finding 2022-002 AL No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency U.S. Department of Treasury Pass-through Agency Not applicable Award Number / Year 1505-0271 Department McHenry County Department of Finance Criteria: The Uniform Guidance require that prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and sub recipients are not suspended, debarred or otherwise excluded pursuant to 31 CFR section 19.300. Condition/Context: During testing, it was noted that the County did not perform this search for two of the four vendors tested. The sample was not statistically valid. Cause: The County did not have procedures in place to perform this search. Questioned Costs: None noted. Effect: The County could do business with a vendor who is suspended or barred. Recommendation: We recommend the County incorporate this search procedure into its procurement policy. Management's Response: Management has reviewed the finding and agrees with the Auditor's notes. The quarterly report to the US Treasury is prepared by our ARPA consultant. As part of the reporting requirements, they do confirm vendors and verify UEIs at SAM.gov but we agree that this process needs to be better defined and documented for all federal awards.
Finding 2022-002 AL No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency U.S. Department of Treasury Pass-through Agency Not applicable Award Number / Year 1505-0271 Department McHenry County Department of Finance Criteria: The Uniform Guidance require that prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and sub recipients are not suspended, debarred or otherwise excluded pursuant to 31 CFR section 19.300. Condition/Context: During testing, it was noted that the County did not perform this search for two of the four vendors tested. The sample was not statistically valid. Cause: The County did not have procedures in place to perform this search. Questioned Costs: None noted. Effect: The County could do business with a vendor who is suspended or barred. Recommendation: We recommend the County incorporate this search procedure into its procurement policy. Management's Response: Management has reviewed the finding and agrees with the Auditor's notes. The quarterly report to the US Treasury is prepared by our ARPA consultant. As part of the reporting requirements, they do confirm vendors and verify UEIs at SAM.gov but we agree that this process needs to be better defined and documented for all federal awards.