FAC Explorer

Audit 298350

FY End
2022-09-30
Total Expended
$941,288
Findings
2
Programs
4
Organization: Perry County (MS)
Year: 2022 Accepted: 2024-03-27
Auditor: Mississippi Office of the State Auditor

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
385640 2022-006 Material Weakness Yes AB
962082 2022-006 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
10.665 Schools and Roads - Grants to States $643,456 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $177,937 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $102,758 - 0
97.042 Emergency Management Performance Grants $17,137 - 0

Contacts

Name Title Type
FT1FDTTPKJX4 Ashly Tingle Auditee
6019648370 Joe McKnight 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: Perry County has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Perry County under programs of the federal government for the year ended September 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 operations of Perry County, it is not intended to and does not present the financial position, changes in net position, or cash flows of Perry County.
Title: Schools and Roads - Grants to States 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: Perry County has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Of the federal expenditures presented in the Schedule, the County provided awards totaling $306,218 to subrecipients during the year ended September 30, 2022.
Title: Disaster Grants - public assistance (Presidentially declared disasters) - ALN 97.036 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: Perry County has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. After a Presidentially declared disaster, FEMA provides Disaster grants - public assistance (Presidentially declared disasters) (ALN 97.036) to reimburse eligible costs associated with repair, replacement or restoration of disaster-damaged facilities. The federal government makes reimbursements in the form of cost-shared grants that require state matching funds. In fiscal year 2022, FEMA approved $102,758 in eligible expenditures that were incurred in the prior fiscal year. These approved eligible expenditures are included on the SEFA for the year ended September 30, 2022.

Finding Details

Finding 2022-006
Compliance Activities Allowed or Unallowed and Allowable Costs / Cost Principles Requirement Material Weakness Material Noncompliance 2022-006. The County should establish controls to ensure fifty percent of National Forest Distribution Title I funds are settled to the schools. CFDA Number 10.665 Federal Award Schools and Roads - Grants to States Pass-through Mississippi State Treasurer’s Office Questioned Costs None Context Due to the nature of the requirement, compliance was tested on a program-wide basis. Repeat Finding Yes Criteria During the fiscal year 2022, Perry County received $643,456 in National Forest Distribution Title I funds, a portion of the Secure Rural Schools Act State payments, which are to be used to benefit public schools and public roads in counties where national forests are located. Upon receipt of these funds, fifty percent of the total received should be settled to the County’s public school. Condition The County received a total of thirteen National Forest Distribution Title I payments during fiscal year 2022. However, during our audit test procedures, we noted six of these payments were not settled properly to Perry County Schools. Cause The County lacked the necessary controls to ensure fifty percent of the total received from the Secure Rural Schools Act state payments was settled to the County’s public school. Effect The County’s lack of adequate controls resulted in an overstatement of County revenues in the amount of $15,510. Recommendation The Perry County Board of Supervisors should take the necessary steps to ensure that fifty percent of the total National Forest Distribution Title I funds are properly settled to the County’s public school.
Finding 2022-006
Compliance Activities Allowed or Unallowed and Allowable Costs / Cost Principles Requirement Material Weakness Material Noncompliance 2022-006. The County should establish controls to ensure fifty percent of National Forest Distribution Title I funds are settled to the schools. CFDA Number 10.665 Federal Award Schools and Roads - Grants to States Pass-through Mississippi State Treasurer’s Office Questioned Costs None Context Due to the nature of the requirement, compliance was tested on a program-wide basis. Repeat Finding Yes Criteria During the fiscal year 2022, Perry County received $643,456 in National Forest Distribution Title I funds, a portion of the Secure Rural Schools Act State payments, which are to be used to benefit public schools and public roads in counties where national forests are located. Upon receipt of these funds, fifty percent of the total received should be settled to the County’s public school. Condition The County received a total of thirteen National Forest Distribution Title I payments during fiscal year 2022. However, during our audit test procedures, we noted six of these payments were not settled properly to Perry County Schools. Cause The County lacked the necessary controls to ensure fifty percent of the total received from the Secure Rural Schools Act state payments was settled to the County’s public school. Effect The County’s lack of adequate controls resulted in an overstatement of County revenues in the amount of $15,510. Recommendation The Perry County Board of Supervisors should take the necessary steps to ensure that fifty percent of the total National Forest Distribution Title I funds are properly settled to the County’s public school.