FAC Explorer

Audit 298495

FY End
2023-06-30
Total Expended
$2.63M
Findings
2
Programs
4
Organization: Madison County, Nebraska (NE)
Year: 2023 Accepted: 2024-03-27
Auditor: Mdt LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
386108 2023-003 Material Weakness - M
962550 2023-003 Material Weakness - M

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.47M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $129,937 - 0
93.563 Child Support Enforcement $25,934 - 0
20.600 State and Community Highway Safety $3,981 - 0

Contacts

Name Title Type
YKPCKZFXLUA3 Anne Pruss Auditee
4024543311 Cassie Albus Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the cash 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. De Minimis Rate Used: N Rate Explanation: The County did not elect the 10% de minimis indirect cost rate as it was not proven to be as accurate of a calculation of the indirect costs as the current method utilized. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Madison County, Nebraska and is presented on the cash basis of accounting. 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of, the basic financial statements.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the cash 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. De Minimis Rate Used: N Rate Explanation: The County did not elect the 10% de minimis indirect cost rate as it was not proven to be as accurate of a calculation of the indirect costs as the current method utilized. Expenditures reported on the Schedule are reported on the cash 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. The County did not elect to use the 10% de minimis indirect cost rate, as allowed under Uniform Guidance.

Finding Details

Finding 2023-003
SUBRECIPIENT MONITORING Program: AL 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Subrecipient Monitoring Grant Number & Year: NA Federal Grantor Agency: U.S. Department of the Treasury Repeat Finding: No Questioned Costs: $750,000 likely Condition: The County lacked procedures to ensure that subrecipients documented their use of Federal awards appropriately. Criteria: Per 2 CFR § 200.332 (January 1, 2022), all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purpose, in compliance with Federal Statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient. Cause: There were not proper procedures in place for subrecipient monitoring. Potential Effect: Without adequate supporting documentation and monitoring procedures, there is an increased risk that Federal Awards could be used for unallowable costs. Recommendation: We recommend that the County improve procedures to monitor subrecipients, including reviewing detailed supporting documentation for expenses and following up with subrecipients to ensure that they correct errors noted. The County may also want to consider using only reimbursement basis grants, so the supporting documentation is received prior to payment to subrecipients. This would help prevent issues of obtaining documentation to support the payments. Views of Officials: The County is aware of the above finding and has adjusted our procedures related to disbursing federal funds to subrecipients. We have changed to a cost reimbursement basis for disbursing the federal funds to subrecipients. We currently receive supporting documentation prior to payment.
Finding 2023-003
SUBRECIPIENT MONITORING Program: AL 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Subrecipient Monitoring Grant Number & Year: NA Federal Grantor Agency: U.S. Department of the Treasury Repeat Finding: No Questioned Costs: $750,000 likely Condition: The County lacked procedures to ensure that subrecipients documented their use of Federal awards appropriately. Criteria: Per 2 CFR § 200.332 (January 1, 2022), all pass-through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purpose, in compliance with Federal Statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient. Cause: There were not proper procedures in place for subrecipient monitoring. Potential Effect: Without adequate supporting documentation and monitoring procedures, there is an increased risk that Federal Awards could be used for unallowable costs. Recommendation: We recommend that the County improve procedures to monitor subrecipients, including reviewing detailed supporting documentation for expenses and following up with subrecipients to ensure that they correct errors noted. The County may also want to consider using only reimbursement basis grants, so the supporting documentation is received prior to payment to subrecipients. This would help prevent issues of obtaining documentation to support the payments. Views of Officials: The County is aware of the above finding and has adjusted our procedures related to disbursing federal funds to subrecipients. We have changed to a cost reimbursement basis for disbursing the federal funds to subrecipients. We currently receive supporting documentation prior to payment.