Audit 295151

Reporting Material Weakness, Internal Control Over Compliance, Reporting Criteria: A recipient of federal awards that is required to report information to the federal agency is required to ensure there are controls in place over reporting. Condition and Context: The Organization did not have a formally documented or enacted process in place to ensure all reporting requirements were completed accurately. And there was also no underlying supporting documentation for the reports provided to the federal agency. Cause: The related review of reporting was not documented, nor were the supporting schedules available for review to support the reportable information. Effect or Potential Effect: Without sufficient documentation and monitoring controls, the Organization may not be able to detect an error in reporting timely. Recommendation: We recommend the Organization establish and follow a documented internal control process over review of reporting. Responsible Official’s Response: Management agrees with the recommendation to establish and follow a documented internal control process over the review of reporting. Staff will work to develop an appropriate internal control process and once the process has been developed staff will document in writing, the process and review it with department leaders. Additionally, staff members working in areas concerning this process will be trained to ensure process adherence.

Allowable Costs and Allowable Activities Material Weakness, Internal Control Over Compliance, Allowable Costs and Activities Criteria: 2 CFR 200.43(i)(1)(1) requires entities to haver personnel expenses supported by a system of internal controls which provides reasonable assurance that charges are accurate, allowable, and properly allocated. Condition and Context: We noted that 5 of the 6 employees who were charged to the grant and in which requests for reimbursement were completed, their timesheets and wages did not support the amount charged to the grant. There was also no documented review by an appropriate supervisor. Cause: The Organization does not have an established policy to ensure that the review and approval of timecards of employees are documented and support the amount charged to the grant. Effect or Potential Effect: Without documentation of adequate controls over expenditures in compliance with requirements, the County was not able to ensure the accuracy of expenditures that were charged to the grant. Recommendation: We recommend the Organization establish and follow a documented policy of review of timecards for all departments. The Organization should improve its internal controls over grants by ensuring the personnel responsible appropriately documenting reviews and approvals relating to the allowability and availability of expenditures to a specific grant program. Responsible Official’s Response: Management agrees with the recommendation to establish and follow a documented internal control process over the review of allowable costs. Staff will work to develop an appropriate internal control process and once the process has been developed staff will document in writing, the process and review it with department leaders. Additionally, staff members working in areas concerning this process will be trained to ensure process adherence.

Reporting Material Weakness, Internal Control Over Compliance, Reporting Criteria: A recipient of federal awards that is required to report information to the federal agency is required to ensure there are controls in place over reporting. Condition and Context: The Organization did not have a formally documented or enacted process in place to ensure all reporting requirements were completed accurately. And there was also no underlying supporting documentation for the reports provided to the federal agency. Cause: The related review of reporting was not documented, nor were the supporting schedules available for review to support the reportable information. Effect or Potential Effect: Without sufficient documentation and monitoring controls, the Organization may not be able to detect an error in reporting timely. Recommendation: We recommend the Organization establish and follow a documented internal control process over review of reporting. Responsible Official’s Response: Management agrees with the recommendation to establish and follow a documented internal control process over the review of reporting. Staff will work to develop an appropriate internal control process and once the process has been developed staff will document in writing, the process and review it with department leaders. Additionally, staff members working in areas concerning this process will be trained to ensure process adherence.

Allowable Costs and Allowable Activities Material Weakness, Internal Control Over Compliance, Allowable Costs and Activities Criteria: 2 CFR 200.43(i)(1)(1) requires entities to haver personnel expenses supported by a system of internal controls which provides reasonable assurance that charges are accurate, allowable, and properly allocated. Condition and Context: We noted that 5 of the 6 employees who were charged to the grant and in which requests for reimbursement were completed, their timesheets and wages did not support the amount charged to the grant. There was also no documented review by an appropriate supervisor. Cause: The Organization does not have an established policy to ensure that the review and approval of timecards of employees are documented and support the amount charged to the grant. Effect or Potential Effect: Without documentation of adequate controls over expenditures in compliance with requirements, the County was not able to ensure the accuracy of expenditures that were charged to the grant. Recommendation: We recommend the Organization establish and follow a documented policy of review of timecards for all departments. The Organization should improve its internal controls over grants by ensuring the personnel responsible appropriately documenting reviews and approvals relating to the allowability and availability of expenditures to a specific grant program. Responsible Official’s Response: Management agrees with the recommendation to establish and follow a documented internal control process over the review of allowable costs. Staff will work to develop an appropriate internal control process and once the process has been developed staff will document in writing, the process and review it with department leaders. Additionally, staff members working in areas concerning this process will be trained to ensure process adherence.