FAC Explorer

Audit 2759

FY End
2022-06-30
Total Expended
$22.10M
Findings
10
Programs
49
Organization: County of Lee, Virginia (VA)
Year: 2022 Accepted: 2023-11-09
Auditor: Robinson Farmer Cox Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1496 2022-007 Material Weakness Yes L
1497 2022-006 - Yes M
1498 2022-006 - Yes M
1499 2022-006 - Yes M
1500 2022-006 - Yes M
577938 2022-007 Material Weakness Yes L
577939 2022-006 - Yes M
577940 2022-006 - Yes M
577941 2022-006 - Yes M
577942 2022-006 - Yes M

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $3.08M Yes 0
84.010 Title I Grants to Local Educational Agencies $1.70M Yes 0
21.019 Coronavirus Relief Fund $1.16M Yes 1
93.659 Adoption Assistance $907,902 - 0
17.259 Wia Youth Activities $793,082 Yes 1
10.855 Distance Learning and Telemedicine Loans and Grants $752,857 Yes 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $728,169 - 0
17.258 Wia Adult Program $582,311 Yes 1
10.553 School Breakfast Program $503,872 - 0
93.667 Social Services Block Grant $492,268 Yes 0
93.558 Temporary Assistance for Needy Families $443,198 - 0
93.658 Foster Care_title IV-E $424,874 - 0
93.778 Medical Assistance Program $380,748 - 0
17.278 Wia Dislocated Worker Formula Grants $322,844 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $299,230 - 0
20.106 Airport Improvement Program $281,964 - 0
32.009 Emergency Connectivity Fund Program $261,750 - 0
84.367 Improving Teacher Quality State Grants $236,791 - 0
84.027 Special Education_grants to States $145,084 Yes 0
10.555 National School Lunch Program $140,445 - 0
93.600 Head Start $139,585 - 0
10.558 Child and Adult Care Food Program $132,177 - 0
84.424 Student Support and Academic Enrichment Program $131,359 - 0
84.048 Career and Technical Education -- Basic Grants to States $111,410 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $92,061 - 0
84.358 Rural Education $84,167 - 0
93.568 Low-Income Home Energy Assistance $75,157 - 0
16.575 Crime Victim Assistance $71,423 - 0
16.588 Violence Against Women Formula Grants $39,533 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $31,150 - 0
17.207 Employment Service/wagner-Peyser Funded Activities $30,921 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $23,564 - 0
10.559 Summer Food Service Program for Children $21,970 - 0
10.665 Schools and Roads - Grants to States $21,640 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $18,039 - 0
84.173 Special Education_preschool Grants $13,824 Yes 0
10.579 Child Nutrition Discretionary Grants Limited Availability $12,920 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $11,250 - 0
97.042 Emergency Management Performance Grants $7,500 - 0
93.556 Promoting Safe and Stable Families $7,090 - 0
20.616 National Priority Safety Programs $6,270 - 0
93.747 Elder Abuse Prevention Interventions Program $5,339 - 0
93.472 Title IV-E Prevention and Family Services and Programs (a) $5,299 - 0
23.002 Appalachian Area Development $5,000 - 0
93.767 Children's Health Insurance Program $3,900 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $1,958 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1,016 - 0
93.090 Guardianship Assistance $398 - 0

Contacts

Name Title Type
M7AFLCZLZNE5 Dane Poe Auditee
2763467714 Scott Wickham Auditor
No contacts on file

Notes to SEFA

Title: Note A Basis of Presentation Accounting Policies: (1)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 allowable or are limited as to reimbursement. (2)Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the County of Lee, Virginia and its discretely presented component unit - School Board under programs of the federal government 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance). Because the Schedule presents only a selected portion of the County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County.
Title: Note C -- Food Donation Accounting Policies: (1)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 allowable or are limited as to reimbursement. (2)Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. At June 30, 2022, the Lee County School Board had food commodities totaling $0 in inventory.
Title: Note D -- Relationship to the Financial Statements: Accounting Policies: (1)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 allowable or are limited as to reimbursement. (2)Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal expenditures, revenues and capital contributions are reported in the County's basic financial statements as follows: See chart in Notes to SEFA

Finding Details

Finding 2022-007
COVID-19 Coronavirus Relief Fund (21.019) Agency: Department of Treasury Federal Award Number/Year: 2020 Program & ALN: COVID-19 Coronavirus Relief Fund - 21.019 Pass-through Entities: Virginia Department of Accounts Compliance Requirement: Reporting Finding Type: Finding reported in accordance with 2 CFR section 200.516(a) and material weakness of internal controls surrounding reporting requirements. Criteria: Per single audit requirements, prime recipients (i.e. the Commonwealth of Virginia) are required to submit quarterly Financial Progress reports. To assist with the reporting requirement, the Commonwealth required quarterly reports from its subrecipients (the County). Condition: The County did not file a required quarterly report for the quarter ended September 30, 2021. Cause: The County did not have a proper reporting and review process of federal grants and failed to submit the required report. Effect: The amounts reported by the County to the Commonwealth are understated resulting in an error in reporting by the Commonwealth to the federal government. Recommendation: Management should establish a reconciliation process and reports should be reviewed by someone other than the preparer prior to submission to ensure accuracy of reporting. Views of Responsible Officials and Planned Corrective Action: The County concurs with the finding. The County corrected activity with the final reporting filed for the period ended December 31, 2021.
Finding 2022-006
WIOA Cluster (17.258/17.259/17.278) Department of Labor funds as passed through to Southwest Virginia Workforce Development Board Agency: Department of Labor Federal Award Number/Year: 534027 - 2020; 534027 - 2021 Program & ALN: WIOA Cluster (17.258/17.259/17.278) Pass-through Entities:Virginia Community College Systems received by County and passed through to Southwest Virginia Workforce Development Board Compliance Requirement:Subrecipient Monitoring Finding Type: Noncompliance Criteria: The County is the grant recipient for the award and is required to perform subrecipient monitoring procedures to ensure proper compliance with Uniform Guidance. Condition:Funds are requested for drawdown by the subrecipient without the County reviewing and approving documentation. Cause:The County misunderstood the compliance requirements for subrecipient monitoring. Effect:The County does not properly monitor the subrecipient of the grants to ensure proper use of funds. Recommendation:We recommend the County obtain, review, and approve the reimbursement requests prior to submission. Further, we recommend the County obtain and review periodic financial statements and/or underlying documentation and obtain a copy of the annual audit report in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: The County will work with the subrecipient to implement necessary controls to be in compliance.
Finding 2022-006
WIOA Cluster (17.258/17.259/17.278) Department of Labor funds as passed through to Southwest Virginia Workforce Development Board Agency: Department of Labor Federal Award Number/Year: 534027 - 2020; 534027 - 2021 Program & ALN: WIOA Cluster (17.258/17.259/17.278) Pass-through Entities:Virginia Community College Systems received by County and passed through to Southwest Virginia Workforce Development Board Compliance Requirement:Subrecipient Monitoring Finding Type: Noncompliance Criteria: The County is the grant recipient for the award and is required to perform subrecipient monitoring procedures to ensure proper compliance with Uniform Guidance. Condition:Funds are requested for drawdown by the subrecipient without the County reviewing and approving documentation. Cause:The County misunderstood the compliance requirements for subrecipient monitoring. Effect:The County does not properly monitor the subrecipient of the grants to ensure proper use of funds. Recommendation:We recommend the County obtain, review, and approve the reimbursement requests prior to submission. Further, we recommend the County obtain and review periodic financial statements and/or underlying documentation and obtain a copy of the annual audit report in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: The County will work with the subrecipient to implement necessary controls to be in compliance.
Finding 2022-006
WIOA Cluster (17.258/17.259/17.278) Department of Labor funds as passed through to Southwest Virginia Workforce Development Board Agency: Department of Labor Federal Award Number/Year: 534027 - 2020; 534027 - 2021 Program & ALN: WIOA Cluster (17.258/17.259/17.278) Pass-through Entities:Virginia Community College Systems received by County and passed through to Southwest Virginia Workforce Development Board Compliance Requirement:Subrecipient Monitoring Finding Type: Noncompliance Criteria: The County is the grant recipient for the award and is required to perform subrecipient monitoring procedures to ensure proper compliance with Uniform Guidance. Condition:Funds are requested for drawdown by the subrecipient without the County reviewing and approving documentation. Cause:The County misunderstood the compliance requirements for subrecipient monitoring. Effect:The County does not properly monitor the subrecipient of the grants to ensure proper use of funds. Recommendation:We recommend the County obtain, review, and approve the reimbursement requests prior to submission. Further, we recommend the County obtain and review periodic financial statements and/or underlying documentation and obtain a copy of the annual audit report in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: The County will work with the subrecipient to implement necessary controls to be in compliance.
Finding 2022-006
WIOA Cluster (17.258/17.259/17.278) Department of Labor funds as passed through to Southwest Virginia Workforce Development Board Agency: Department of Labor Federal Award Number/Year: 534027 - 2020; 534027 - 2021 Program & ALN: WIOA Cluster (17.258/17.259/17.278) Pass-through Entities:Virginia Community College Systems received by County and passed through to Southwest Virginia Workforce Development Board Compliance Requirement:Subrecipient Monitoring Finding Type: Noncompliance Criteria: The County is the grant recipient for the award and is required to perform subrecipient monitoring procedures to ensure proper compliance with Uniform Guidance. Condition:Funds are requested for drawdown by the subrecipient without the County reviewing and approving documentation. Cause:The County misunderstood the compliance requirements for subrecipient monitoring. Effect:The County does not properly monitor the subrecipient of the grants to ensure proper use of funds. Recommendation:We recommend the County obtain, review, and approve the reimbursement requests prior to submission. Further, we recommend the County obtain and review periodic financial statements and/or underlying documentation and obtain a copy of the annual audit report in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: The County will work with the subrecipient to implement necessary controls to be in compliance.
Finding 2022-007
COVID-19 Coronavirus Relief Fund (21.019) Agency: Department of Treasury Federal Award Number/Year: 2020 Program & ALN: COVID-19 Coronavirus Relief Fund - 21.019 Pass-through Entities: Virginia Department of Accounts Compliance Requirement: Reporting Finding Type: Finding reported in accordance with 2 CFR section 200.516(a) and material weakness of internal controls surrounding reporting requirements. Criteria: Per single audit requirements, prime recipients (i.e. the Commonwealth of Virginia) are required to submit quarterly Financial Progress reports. To assist with the reporting requirement, the Commonwealth required quarterly reports from its subrecipients (the County). Condition: The County did not file a required quarterly report for the quarter ended September 30, 2021. Cause: The County did not have a proper reporting and review process of federal grants and failed to submit the required report. Effect: The amounts reported by the County to the Commonwealth are understated resulting in an error in reporting by the Commonwealth to the federal government. Recommendation: Management should establish a reconciliation process and reports should be reviewed by someone other than the preparer prior to submission to ensure accuracy of reporting. Views of Responsible Officials and Planned Corrective Action: The County concurs with the finding. The County corrected activity with the final reporting filed for the period ended December 31, 2021.
Finding 2022-006
WIOA Cluster (17.258/17.259/17.278) Department of Labor funds as passed through to Southwest Virginia Workforce Development Board Agency: Department of Labor Federal Award Number/Year: 534027 - 2020; 534027 - 2021 Program & ALN: WIOA Cluster (17.258/17.259/17.278) Pass-through Entities:Virginia Community College Systems received by County and passed through to Southwest Virginia Workforce Development Board Compliance Requirement:Subrecipient Monitoring Finding Type: Noncompliance Criteria: The County is the grant recipient for the award and is required to perform subrecipient monitoring procedures to ensure proper compliance with Uniform Guidance. Condition:Funds are requested for drawdown by the subrecipient without the County reviewing and approving documentation. Cause:The County misunderstood the compliance requirements for subrecipient monitoring. Effect:The County does not properly monitor the subrecipient of the grants to ensure proper use of funds. Recommendation:We recommend the County obtain, review, and approve the reimbursement requests prior to submission. Further, we recommend the County obtain and review periodic financial statements and/or underlying documentation and obtain a copy of the annual audit report in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: The County will work with the subrecipient to implement necessary controls to be in compliance.
Finding 2022-006
WIOA Cluster (17.258/17.259/17.278) Department of Labor funds as passed through to Southwest Virginia Workforce Development Board Agency: Department of Labor Federal Award Number/Year: 534027 - 2020; 534027 - 2021 Program & ALN: WIOA Cluster (17.258/17.259/17.278) Pass-through Entities:Virginia Community College Systems received by County and passed through to Southwest Virginia Workforce Development Board Compliance Requirement:Subrecipient Monitoring Finding Type: Noncompliance Criteria: The County is the grant recipient for the award and is required to perform subrecipient monitoring procedures to ensure proper compliance with Uniform Guidance. Condition:Funds are requested for drawdown by the subrecipient without the County reviewing and approving documentation. Cause:The County misunderstood the compliance requirements for subrecipient monitoring. Effect:The County does not properly monitor the subrecipient of the grants to ensure proper use of funds. Recommendation:We recommend the County obtain, review, and approve the reimbursement requests prior to submission. Further, we recommend the County obtain and review periodic financial statements and/or underlying documentation and obtain a copy of the annual audit report in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: The County will work with the subrecipient to implement necessary controls to be in compliance.
Finding 2022-006
WIOA Cluster (17.258/17.259/17.278) Department of Labor funds as passed through to Southwest Virginia Workforce Development Board Agency: Department of Labor Federal Award Number/Year: 534027 - 2020; 534027 - 2021 Program & ALN: WIOA Cluster (17.258/17.259/17.278) Pass-through Entities:Virginia Community College Systems received by County and passed through to Southwest Virginia Workforce Development Board Compliance Requirement:Subrecipient Monitoring Finding Type: Noncompliance Criteria: The County is the grant recipient for the award and is required to perform subrecipient monitoring procedures to ensure proper compliance with Uniform Guidance. Condition:Funds are requested for drawdown by the subrecipient without the County reviewing and approving documentation. Cause:The County misunderstood the compliance requirements for subrecipient monitoring. Effect:The County does not properly monitor the subrecipient of the grants to ensure proper use of funds. Recommendation:We recommend the County obtain, review, and approve the reimbursement requests prior to submission. Further, we recommend the County obtain and review periodic financial statements and/or underlying documentation and obtain a copy of the annual audit report in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: The County will work with the subrecipient to implement necessary controls to be in compliance.
Finding 2022-006
WIOA Cluster (17.258/17.259/17.278) Department of Labor funds as passed through to Southwest Virginia Workforce Development Board Agency: Department of Labor Federal Award Number/Year: 534027 - 2020; 534027 - 2021 Program & ALN: WIOA Cluster (17.258/17.259/17.278) Pass-through Entities:Virginia Community College Systems received by County and passed through to Southwest Virginia Workforce Development Board Compliance Requirement:Subrecipient Monitoring Finding Type: Noncompliance Criteria: The County is the grant recipient for the award and is required to perform subrecipient monitoring procedures to ensure proper compliance with Uniform Guidance. Condition:Funds are requested for drawdown by the subrecipient without the County reviewing and approving documentation. Cause:The County misunderstood the compliance requirements for subrecipient monitoring. Effect:The County does not properly monitor the subrecipient of the grants to ensure proper use of funds. Recommendation:We recommend the County obtain, review, and approve the reimbursement requests prior to submission. Further, we recommend the County obtain and review periodic financial statements and/or underlying documentation and obtain a copy of the annual audit report in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: The County will work with the subrecipient to implement necessary controls to be in compliance.