Reference Number: 2023-008
Federal Program Title: Public Health Emergency Preparedness
Federal Assistance Listing Number: 93.069
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU90TP922022-04-01; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Procurement and Suspension and Debarment
Type of Finding: Material Weakness in Internal Control Over Compliance; Material Noncompliance
Criteria
Procurement
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.318:
(j) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
2 CFR § 200.319 states:
(b) All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and § 200.320.
2 CFR § 200.320 states:
The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award.
Suspension and Debarment
In addition, in accordance with 2 CFR § 180.200 a covered transaction is a nonprocurement or procurement transaction that is subject to the prohibitions of this part.
Per 2 CFR § 180.970(a), nonprocurement transaction means any transaction, regardless of type (except procurement contracts), including, but not limited to grants.
According to 2 CFR § 180.300, when the County enters into a covered transaction with another person at the next lower tier, the County must verify that the person is not excluded or disqualified. The County can do this by:
1. Checking System for Award Management (SAM) exclusions
2. Collecting a certification from that person; or
3. Adding a clause or condition to the covered transaction with that person.
Per 2 CFR § 180.985, person means any individual, corporation, partnership, association, unit of government, or legal entity, however organized.
Condition
During our audit of the Department of Public Health (DPH) compliance with the procurement and suspension and debarment requirements for the Public Health Emergency Preparedness Program, we noted the following:
• For twenty-one (21) contracts, DPH did not provide documentation related to the history of the procurement. Therefore, we were unable to determine whether DPH complied with the procurement requirements related to the method of procurement, competition, and the basis for the contract price.
• For two (2) contracts, DPH did not provide documentation of the justification and approval of sole source. Therefore, we were unable to determine whether the procurement method used was appropriate and whether limiting competition was justified.
• For three (3) contracts, DPH did not provide documentation to demonstrate DPH verified that the vendor was not suspended or debarred from participating in federally funded contracts prior to entering into a covered transaction. Based on a subsequent review of the SAM exclusions, the vendors are not suspended or debarred.
Cause
DPH did not provide procurement and suspension and debarment documentation due to staff shortages and increased workload.
For suspension and debarment, for two of the three contracts, DPH provided copies of the verification from Sam.gov, however, the documents did not have dates indicating the verification occurred prior to contract execution.
Effect
Failure to document the history of procurements results in noncompliance with the procurement requirements with 2 CFR §§ 200.317, 200.318, 200.319 and 200.320. Failure to document verification of suspension and debarment results in noncompliance with 2 CFR § 180.300, and there is a risk that federal funds may be used to pay subrecipients and vendors that are suspended or debarred.
Questioned Costs
Questioned costs were not identified.
Context
For the twenty-seven (27) contracts selected for testing, which totaled $1,942,586 from a population of 178 contracts with expenditures totaling $2,132,936, DPH did not provide the necessary documentation for twenty-three (23) contracts with expenditures totaling $1,273,569 and suspension and debarment documentation for three (3) contracts with expenditures totaling $124,809.
The sample was not a statistically valid sample.
Recommendation
We recommend that DPH maintain sufficient records to support vendor selection in accordance with procurement requirements. In additional, we recommend that DPH either: 1) include a contract clause or condition to the covered transaction with that person, 2) check the SAM exclusions prior to entering into a contract and maintain documentation of that verification, or 3) collect a certification from that person.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-007
Federal Program Title: Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises
Federal Assistance Listing Number: 93.391
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NH75OT000002-01-03; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Procurement and Suspension and Debarment
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 180.200, a covered transaction is a nonprocurement or procurement transaction that is subject to the prohibitions of this part.
Per 2 CFR § 180.970(a), nonprocurement transaction means any transaction, regardless of type (except procurement contracts), including, but not limited to grants.
According to 2 CFR § 180.300, when the County enters into a covered transaction with another person at the next lower tier, the County must verify that the person is not excluded or disqualified. The County can do this by:
1. Checking System for Award Management (SAM) exclusions
2. Collecting a certification from that person; or
3. Adding a clause or condition to the covered transaction with that person.
Per 2 CFR § 180.985, person means any individual, corporation, partnership, association, unit of government, or legal entity, however organized.
Condition
During our audit of the Department of Public Health (DPH) compliance with suspension and debarment requirements for the Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises Program, we noted that for one (1) contract, DPH did not provide documentation to demonstrate DPH verified that a vendor was not suspended or debarred from participating in federally funded contracts prior to entering into a covered transaction. Based on a subsequent review of the SAM exclusions, the vendor is not suspended or debarred.
Cause
DPH was unable to locate documentation that verification of suspension or debarment occurred prior to contract execution.
Effect
Failure to document verification of suspension and debarment results in noncompliance with 2 CFR § 180.300, and there is a risk that federal funds may be used to pay subrecipients and vendors that are suspended or debarred.
Questioned Costs
Questioned costs were not identified.
Context
Of the three (3) contracts selected for testing, which totaled $1,810,023 from a population of twelve (12) contracts with expenditures totaling $2,278,647, there was one (1) contract with expenditures totaling $7,100 without evidence that the verification of suspension and debarment was performed before entering into a covered transaction.
This was not a statistically valid sample.
Recommendation
We recommend that DPH either: 1) include a contract clause or condition to the covered transaction with that person, 2) check the SAM exclusions prior to entering into a contract and maintain documentation of that verification, or 3) collect a certification from that person.
Reference Number: 2023-005
Federal Program Title: HIV Prevention Activities Health Department Based
Federal Assistance Listing Number: 93.940
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 5 NU62PS924619-02-00, 5 NU62SP924619-03-00, 6 NU62PS924569-05-03; 6 NU62PS924569-05-04; 6 NU62PS924569-05-05; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the DPH’s compliance with the reporting requirement for the HIV Prevention Activities Health Department Based program, we noted that DPH submitted the FFATA reports for seven (7) subawards after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-010.
Cause
The program reported subaward agreements and modifications in December 2022 and at fiscal year-end in June 2023, rather than 30 days after when the subaward agreements or modifications occurred.
Effect
Failure to submit the FFATA reports results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Ten (10) subawards requiring the submission of a FFATA report were selected for testing from a total population of 38 subrecipient awards, and FFATA reports were not submitted timely for seven (7) subawards.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-005
Federal Program Title: HIV Prevention Activities Health Department Based
Federal Assistance Listing Number: 93.940
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 5 NU62PS924619-02-00, 5 NU62SP924619-03-00, 6 NU62PS924569-05-03; 6 NU62PS924569-05-04; 6 NU62PS924569-05-05; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the DPH’s compliance with the reporting requirement for the HIV Prevention Activities Health Department Based program, we noted that DPH submitted the FFATA reports for seven (7) subawards after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-010.
Cause
The program reported subaward agreements and modifications in December 2022 and at fiscal year-end in June 2023, rather than 30 days after when the subaward agreements or modifications occurred.
Effect
Failure to submit the FFATA reports results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Ten (10) subawards requiring the submission of a FFATA report were selected for testing from a total population of 38 subrecipient awards, and FFATA reports were not submitted timely for seven (7) subawards.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-005
Federal Program Title: HIV Prevention Activities Health Department Based
Federal Assistance Listing Number: 93.940
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 5 NU62PS924619-02-00, 5 NU62SP924619-03-00, 6 NU62PS924569-05-03; 6 NU62PS924569-05-04; 6 NU62PS924569-05-05; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the DPH’s compliance with the reporting requirement for the HIV Prevention Activities Health Department Based program, we noted that DPH submitted the FFATA reports for seven (7) subawards after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-010.
Cause
The program reported subaward agreements and modifications in December 2022 and at fiscal year-end in June 2023, rather than 30 days after when the subaward agreements or modifications occurred.
Effect
Failure to submit the FFATA reports results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Ten (10) subawards requiring the submission of a FFATA report were selected for testing from a total population of 38 subrecipient awards, and FFATA reports were not submitted timely for seven (7) subawards.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-002
Federal Program Title: Maternal and Child Health Services Block Grant to the States
Federal Assistance Listing Number: 93.994
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: California Department of Health Care Services/Public Health Institute
Federal Award Number and Year: 202219; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. At a minimum, the schedule must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number (ALN).
Condition
During our audit of the DPH’s Maternal and Child Health Services Block Grant to the States (MCH) program, we noted that DPH incorrectly reported expenditures for the MCH Program in the SEFA. $2,163,020 in expenditures for ALN 93.778 Medicaid Assistance Program, were reported as MCH Program expenditures under ALN 93.994. The SEFA was corrected to properly report the expenditures under both ALNs.
Cause
DPH used funds from ALN 93.778 Medicaid Assistance Program, as matching funds for the MCH Program, as allowed by the MCH Program. While DPH tracked the expenditures for the two ALNs separately, it reported all of the expenditures in the SEFA under the MCH Program.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit and the timely completion of the Single Audit. The MCH program was selected as a Type B program and audited for FY 2022-23. Upon correcting the error identified, an additional Type B program was required to be selected for audit, as MCH fell below the Type B program threshold for FY 2022-23 and did not need to be considered in the County’s risk assessment.
Questioned Costs
Questioned costs were not identified.
Context
The MCH Program originally reported total expenditures of $3,361,264 in FY 2022-23 for two different federal programs: ALN 93.994 for $1,198,244 and ALN 93.778 for $2,163,020. DPH reported the expenditures as $3,361,264 for ALN 93.994 and $0 for ALN 93.778. The SEFA was corrected to appropriately report the expenditures in ALN 93.994 and ALN 93.778.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure expenditures are reported under the correct federal program ALN.
Reference Number: 2023-009
Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds
Federal Assistance Listing Number: 21.027
Federal Agency: U.S. Department of Treasury
Pass-Through Entity: N/A
Federal Award Number and Year: Fiscal Year 2022-23
Name of Department: County Executive Office
Internal Services Department
Department of Consumer Business Affairs
Department of Aging
Category of Finding: Subrecipient Monitoring
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.332, all pass-through entities (PTE) must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the following information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Required information includes:
(1) Federal award identification:
(i.) Subrecipient name (which must match the name associated with its unique entity identifier);
(ii.) Subrecipient's unique entity identifier;
(iii.) Federal Award Identification Number (FAIN);
(iv.) Federal Award Date (see the definition of Federal award date in § 200.1 of this part) of award to the recipient by the Federal agency;
(v.) Subaward Period of Performance Start and End Date;
(vi.) Subaward Budget Period Start and End Date;
(vii.) Amount of Federal Funds Obligated by this action by the pass-through entity to the subrecipient;
(viii.) Total Amount of Federal Funds Obligated to the subrecipient by the pass-through entity including the current financial obligation;
(ix.) Total Amount of the Federal Award committed to the subrecipient by the pass-through entity;
(x.) Federal award project description, as required to be responsive to the Federal Funding Accountability and Transparency Act (FFATA);
(xi.) Name of Federal awarding agency, pass-through entity, and contact information for awarding official of the Pass-through entity;
(xii.) Assistance Listings number and Title; the pass-through entity must identify the dollar amount made available under each Federal award and the Assistance Listings Number at time of disbursement;
(xiii.) Identification of whether the award is R&D; and
(xiv.) Indirect cost rate for the Federal award (including if the de minimis rate is charged) per § 200.414.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring described in paragraphs (d) and (e) of this section.
(d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved.
(f) Verify that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in § 200.501.
Condition
During our audit of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program, we selected twenty-three (23) subrecipients with active contracts with the County during FY 2022-23.
• One (1) contract administered by the Internal Services Department (ISD) did not include one or more of the required elements defined in 2 CFR § 200.332 (a)(1) in the subrecipients’ agreements.
• One (1) contract administered by the Department of Consumer Affairs (DCBA) did not include one or more of the required elements defined in 2 CFR § 200.332(a)(1) in the subrecipients’ agreements.
• For four (4) contracts administered by the Aging Department (AD), the AD did not perform subrecipient monitoring related to the CSLFRF program during FY 2022-23.
Cause
Due to the urgency to implement the CSLFRF program, the Notice of Federal Subaward Information was not completed and provided to the subrecipient for two (2) contracts. The AD was not aware of the requirement to conduct subrecipient monitoring related to the CSLFR program and did not perform subrecipient monitoring of four (4) contracts.
Effect
Failure to provide all the required subaward information may result in subrecipients incorrectly reporting on federal pass-through awards in their Single Audit reports. Failure to document monitoring results in noncompliance with the subrecipient monitoring requirements 2 CFR § 200.332.
Questioned Costs
Questioned costs were not determinable.
Context
Of the twenty-three (23) subrecipients selected for testing, which totaled $71,323,434, from a population of 124 subrecipients with expenditures totaling $90,592,053:
• The departments did not communicate all of the required subaward data elements for two (2) subrecipients with expenditures totaling $7,305,087.
• The AD did not perform subrecipient monitoring for four (4) subrecipients with expenditures totaling $8,542,012.
The sample was not a statistically valid sample.
Recommendation
We recommend the County perform the following:
1. Remind departments that the Notice of Federal Subaward Information is a required attachment for all subrecipient agreements. In addition, subaward contract templates should be reviewed and revised to include placeholders for required information 2 CFR § 200.332(a)(1).
2. For existing subrecipients that were not provided the required elements, provide a letter or amended agreement to include all the required elements of 2 CFR § 200.332(a)(1).
3. Maintain sufficient records of monitoring subrecipients in accordance with subrecipient monitoring requirements.
Reference Number: 2023-010
Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds
Federal Assistance Listing Number: 21.027
Federal Agency: U.S. Department of Treasury
Pass-Through Entity: N/A
Federal Award Number and Year: Fiscal Year 2022-23
Name of Department: County Executive Office
Department of Public Health
Category of Finding: Period of Performance
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.1, period of performance is the total estimated time interval between the start of an initial Federal award and the planned end date, which may include one or more funded portions, or budget periods. Identification of the period of performance in the Federal award per § 200.211(b)(5) does not commit the awarding agency to fund the award beyond the currently approved budget period.
Per 2 CFR § 200.403 in order for costs to be allowable under Federal awards (h) cost must be incurred during the approved budget period. Per 2 CFR § 200.1, the budget period is the time interval from the start date of a funded portion of an award to the end date of that funded portion during which recipients are authorized to expend the funds awarded.
Per 31 CFR § 35.5, a recipient may only use Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) for the purposes enumerated in § 35.6 (b) through (f) to cover costs incurred during the period beginning March 3, 2021, and ending December 31, 2024.
Condition
During our audit of the CSLFRF program, we selected twenty-five (25) employees with payroll expenditures included in the County’s CSLFRF claims during FY 2022-23, and the expenditures for two employees were incurred before March 3, 2021.
Cause
DPH made adjustments to employee expenditure codes to improve the capture and claiming of eligible costs in October 2022; however, certain transactions were erroneously captured from May 2020 and February 2021, which is outside the period of performance.
Effect
Submitting claims with costs incurred or obligated prior to the period of performance start date of March 3, 2021, results in unallowable costs and noncompliance with the period of performance requirements 31 CFR 35.5.
Questioned Costs
Known questioned costs were $4,703.
Context
Of the twenty-five (25) employees selected for testing, which totaled $59,861, from a population of more than 250 employees in five departments with expenditures totaling $43,302,346, expenditures were included for two employees totaling $4,703 that were incurred before the period of performance began March 3, 2021.
The sample was not a statistically valid sample.
Recommendation
We recommend the County verify the date worked for all employees included in the CSLFRF claims was incurred or obligated on or after March 3, 2021.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-004
Federal Program Title: Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response
Federal Assistance Listing Number: 93.354
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU90TP922183-01-03; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the DPH’s compliance with the reporting requirement for the Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response (PHER) program, we noted that DPH submitted the FFATA reports for two (2) subawards after the due date. See the Notes to the SEFA for chart/table.
Cause
Due to working on deadlines for the annual closing of multiple grants and claims submissions, it was an oversight that the FFATA report was not submitted on time.
Effect
Failure to submit the FFATA reports results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Two (2) subawards requiring the submission of a FFATA report were selected for testing from a total population of three (3) subrecipient awards, and FFATA reports were not submitted timely for two (2) subawards.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-004
Federal Program Title: Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response
Federal Assistance Listing Number: 93.354
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU90TP922183-01-03; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the DPH’s compliance with the reporting requirement for the Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response (PHER) program, we noted that DPH submitted the FFATA reports for two (2) subawards after the due date. See the Notes to the SEFA for chart/table.
Cause
Due to working on deadlines for the annual closing of multiple grants and claims submissions, it was an oversight that the FFATA report was not submitted on time.
Effect
Failure to submit the FFATA reports results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Two (2) subawards requiring the submission of a FFATA report were selected for testing from a total population of three (3) subrecipient awards, and FFATA reports were not submitted timely for two (2) subawards.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-006
Federal Program Title: Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response
Federal Assistance Listing Number: 93.354
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU90TP922183-01-03; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Procurement and Suspension and Debarment
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
Procurement
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.318:
(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
2 CFR § 200.319 states:
(a) All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and § 200.320.
2 CFR § 200.320 states:
The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award.
Suspension and Debarment
In addition, in accordance with 2 CFR § 180.200 a covered transaction is a nonprocurement or procurement transaction that is subject to the prohibitions of this part.
Per 2 CFR § 180.970(a), nonprocurement transaction means any transaction, regardless of type (except procurement contracts), including, but not limited to grants.
According to 2 CFR § 180.300, when the County enters into a covered transaction with another person at the next lower tier, the County must verify that the person is not excluded or disqualified. The County can do this by:
1. Checking System for Award Management (SAM) exclusions
2. Collecting a certification from that person; or
3. Adding a clause or condition to the covered transaction with that person.
Per 2 CFR § 180.985, person means any individual, corporation, partnership, association, unit of government, or legal entity, however organized.
Condition
During our audit of the Department of Public Health (DPH) compliance with the procurement and suspension and debarment requirements for the Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response Program, we noted that for one (1) contract, DPH did not provide documentation related to the history of the procurement. Therefore, we were unable to determine whether DPH complied with the procurement requirements related to the method of procurement, competition, and the basis for the contract price.
In addition, for the same one (1) contract, DPH did not provide documentation to demonstrate DPH verified that the vendor was not suspended or debarred from participating in federally funded contracts prior to entering into a covered transaction. Based on a subsequent review of the SAM exclusions, the vendor is not suspended or debarred.
Cause
The Office of the County Counsel stated the contract was privileged from disclosure under attorney-client privilege and did not provide the contract or procurement related documentation. In addition, County Counsel stated the contract did not contain an explicit debarment provision and did not provide documentation that Sam.gov was reviewed or a certification from the vendor.
Effect
Not providing sufficient documentation to auditors to demonstrate compliance with federal compliance results in an audit scope limitation. Failure to document verification of suspension and debarment results in noncompliance with 2 CFR § 180.300, and there is a risk that federal funds may be used to pay subrecipients and vendors that are suspended or debarred.
Questioned Costs
Questioned costs were not identified.
Context
For the six (6) contracts selected for testing, which totaled $37,256,347 from a population of eight (8) contracts with expenditures totaling $37,874,851, DPH did not provide procurement and suspension and debarment documentation for one (1) contract with expenditures totaling $1,499,482.
The sample was not a statistically valid sample.
Recommendation
We recommend County departments discuss and document sensitive legal matters funded by federal funds with respective grantors to obtain guidance and direction on addressing audit requests. In addition, we recommend that DPH ensure sufficient documentation is maintained and available to demonstrate compliance with suspension or debarment. Acceptable items to confirm that vendors and subrecipients are not suspended or debarred are: 1) include a contract clause or condition to the covered transaction with that contractor, 2) search SAM exclusions prior to entering into a contract and maintain documentation of that verification, or 3) collect a certification from the contractor.
Reference Number: 2023-006
Federal Program Title: Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response
Federal Assistance Listing Number: 93.354
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU90TP922183-01-03; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Procurement and Suspension and Debarment
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
Procurement
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.318:
(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
2 CFR § 200.319 states:
(a) All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and § 200.320.
2 CFR § 200.320 states:
The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award.
Suspension and Debarment
In addition, in accordance with 2 CFR § 180.200 a covered transaction is a nonprocurement or procurement transaction that is subject to the prohibitions of this part.
Per 2 CFR § 180.970(a), nonprocurement transaction means any transaction, regardless of type (except procurement contracts), including, but not limited to grants.
According to 2 CFR § 180.300, when the County enters into a covered transaction with another person at the next lower tier, the County must verify that the person is not excluded or disqualified. The County can do this by:
1. Checking System for Award Management (SAM) exclusions
2. Collecting a certification from that person; or
3. Adding a clause or condition to the covered transaction with that person.
Per 2 CFR § 180.985, person means any individual, corporation, partnership, association, unit of government, or legal entity, however organized.
Condition
During our audit of the Department of Public Health (DPH) compliance with the procurement and suspension and debarment requirements for the Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response Program, we noted that for one (1) contract, DPH did not provide documentation related to the history of the procurement. Therefore, we were unable to determine whether DPH complied with the procurement requirements related to the method of procurement, competition, and the basis for the contract price.
In addition, for the same one (1) contract, DPH did not provide documentation to demonstrate DPH verified that the vendor was not suspended or debarred from participating in federally funded contracts prior to entering into a covered transaction. Based on a subsequent review of the SAM exclusions, the vendor is not suspended or debarred.
Cause
The Office of the County Counsel stated the contract was privileged from disclosure under attorney-client privilege and did not provide the contract or procurement related documentation. In addition, County Counsel stated the contract did not contain an explicit debarment provision and did not provide documentation that Sam.gov was reviewed or a certification from the vendor.
Effect
Not providing sufficient documentation to auditors to demonstrate compliance with federal compliance results in an audit scope limitation. Failure to document verification of suspension and debarment results in noncompliance with 2 CFR § 180.300, and there is a risk that federal funds may be used to pay subrecipients and vendors that are suspended or debarred.
Questioned Costs
Questioned costs were not identified.
Context
For the six (6) contracts selected for testing, which totaled $37,256,347 from a population of eight (8) contracts with expenditures totaling $37,874,851, DPH did not provide procurement and suspension and debarment documentation for one (1) contract with expenditures totaling $1,499,482.
The sample was not a statistically valid sample.
Recommendation
We recommend County departments discuss and document sensitive legal matters funded by federal funds with respective grantors to obtain guidance and direction on addressing audit requests. In addition, we recommend that DPH ensure sufficient documentation is maintained and available to demonstrate compliance with suspension or debarment. Acceptable items to confirm that vendors and subrecipients are not suspended or debarred are: 1) include a contract clause or condition to the covered transaction with that contractor, 2) search SAM exclusions prior to entering into a contract and maintain documentation of that verification, or 3) collect a certification from the contractor.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-008
Federal Program Title: Public Health Emergency Preparedness
Federal Assistance Listing Number: 93.069
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU90TP922022-04-01; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Procurement and Suspension and Debarment
Type of Finding: Material Weakness in Internal Control Over Compliance; Material Noncompliance
Criteria
Procurement
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.318:
(j) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
2 CFR § 200.319 states:
(b) All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and § 200.320.
2 CFR § 200.320 states:
The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award.
Suspension and Debarment
In addition, in accordance with 2 CFR § 180.200 a covered transaction is a nonprocurement or procurement transaction that is subject to the prohibitions of this part.
Per 2 CFR § 180.970(a), nonprocurement transaction means any transaction, regardless of type (except procurement contracts), including, but not limited to grants.
According to 2 CFR § 180.300, when the County enters into a covered transaction with another person at the next lower tier, the County must verify that the person is not excluded or disqualified. The County can do this by:
1. Checking System for Award Management (SAM) exclusions
2. Collecting a certification from that person; or
3. Adding a clause or condition to the covered transaction with that person.
Per 2 CFR § 180.985, person means any individual, corporation, partnership, association, unit of government, or legal entity, however organized.
Condition
During our audit of the Department of Public Health (DPH) compliance with the procurement and suspension and debarment requirements for the Public Health Emergency Preparedness Program, we noted the following:
• For twenty-one (21) contracts, DPH did not provide documentation related to the history of the procurement. Therefore, we were unable to determine whether DPH complied with the procurement requirements related to the method of procurement, competition, and the basis for the contract price.
• For two (2) contracts, DPH did not provide documentation of the justification and approval of sole source. Therefore, we were unable to determine whether the procurement method used was appropriate and whether limiting competition was justified.
• For three (3) contracts, DPH did not provide documentation to demonstrate DPH verified that the vendor was not suspended or debarred from participating in federally funded contracts prior to entering into a covered transaction. Based on a subsequent review of the SAM exclusions, the vendors are not suspended or debarred.
Cause
DPH did not provide procurement and suspension and debarment documentation due to staff shortages and increased workload.
For suspension and debarment, for two of the three contracts, DPH provided copies of the verification from Sam.gov, however, the documents did not have dates indicating the verification occurred prior to contract execution.
Effect
Failure to document the history of procurements results in noncompliance with the procurement requirements with 2 CFR §§ 200.317, 200.318, 200.319 and 200.320. Failure to document verification of suspension and debarment results in noncompliance with 2 CFR § 180.300, and there is a risk that federal funds may be used to pay subrecipients and vendors that are suspended or debarred.
Questioned Costs
Questioned costs were not identified.
Context
For the twenty-seven (27) contracts selected for testing, which totaled $1,942,586 from a population of 178 contracts with expenditures totaling $2,132,936, DPH did not provide the necessary documentation for twenty-three (23) contracts with expenditures totaling $1,273,569 and suspension and debarment documentation for three (3) contracts with expenditures totaling $124,809.
The sample was not a statistically valid sample.
Recommendation
We recommend that DPH maintain sufficient records to support vendor selection in accordance with procurement requirements. In additional, we recommend that DPH either: 1) include a contract clause or condition to the covered transaction with that person, 2) check the SAM exclusions prior to entering into a contract and maintain documentation of that verification, or 3) collect a certification from that person.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-007
Federal Program Title: Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises
Federal Assistance Listing Number: 93.391
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NH75OT000002-01-03; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Procurement and Suspension and Debarment
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 180.200, a covered transaction is a nonprocurement or procurement transaction that is subject to the prohibitions of this part.
Per 2 CFR § 180.970(a), nonprocurement transaction means any transaction, regardless of type (except procurement contracts), including, but not limited to grants.
According to 2 CFR § 180.300, when the County enters into a covered transaction with another person at the next lower tier, the County must verify that the person is not excluded or disqualified. The County can do this by:
1. Checking System for Award Management (SAM) exclusions
2. Collecting a certification from that person; or
3. Adding a clause or condition to the covered transaction with that person.
Per 2 CFR § 180.985, person means any individual, corporation, partnership, association, unit of government, or legal entity, however organized.
Condition
During our audit of the Department of Public Health (DPH) compliance with suspension and debarment requirements for the Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises Program, we noted that for one (1) contract, DPH did not provide documentation to demonstrate DPH verified that a vendor was not suspended or debarred from participating in federally funded contracts prior to entering into a covered transaction. Based on a subsequent review of the SAM exclusions, the vendor is not suspended or debarred.
Cause
DPH was unable to locate documentation that verification of suspension or debarment occurred prior to contract execution.
Effect
Failure to document verification of suspension and debarment results in noncompliance with 2 CFR § 180.300, and there is a risk that federal funds may be used to pay subrecipients and vendors that are suspended or debarred.
Questioned Costs
Questioned costs were not identified.
Context
Of the three (3) contracts selected for testing, which totaled $1,810,023 from a population of twelve (12) contracts with expenditures totaling $2,278,647, there was one (1) contract with expenditures totaling $7,100 without evidence that the verification of suspension and debarment was performed before entering into a covered transaction.
This was not a statistically valid sample.
Recommendation
We recommend that DPH either: 1) include a contract clause or condition to the covered transaction with that person, 2) check the SAM exclusions prior to entering into a contract and maintain documentation of that verification, or 3) collect a certification from that person.
Reference Number: 2023-005
Federal Program Title: HIV Prevention Activities Health Department Based
Federal Assistance Listing Number: 93.940
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 5 NU62PS924619-02-00, 5 NU62SP924619-03-00, 6 NU62PS924569-05-03; 6 NU62PS924569-05-04; 6 NU62PS924569-05-05; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the DPH’s compliance with the reporting requirement for the HIV Prevention Activities Health Department Based program, we noted that DPH submitted the FFATA reports for seven (7) subawards after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-010.
Cause
The program reported subaward agreements and modifications in December 2022 and at fiscal year-end in June 2023, rather than 30 days after when the subaward agreements or modifications occurred.
Effect
Failure to submit the FFATA reports results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Ten (10) subawards requiring the submission of a FFATA report were selected for testing from a total population of 38 subrecipient awards, and FFATA reports were not submitted timely for seven (7) subawards.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-005
Federal Program Title: HIV Prevention Activities Health Department Based
Federal Assistance Listing Number: 93.940
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 5 NU62PS924619-02-00, 5 NU62SP924619-03-00, 6 NU62PS924569-05-03; 6 NU62PS924569-05-04; 6 NU62PS924569-05-05; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the DPH’s compliance with the reporting requirement for the HIV Prevention Activities Health Department Based program, we noted that DPH submitted the FFATA reports for seven (7) subawards after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-010.
Cause
The program reported subaward agreements and modifications in December 2022 and at fiscal year-end in June 2023, rather than 30 days after when the subaward agreements or modifications occurred.
Effect
Failure to submit the FFATA reports results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Ten (10) subawards requiring the submission of a FFATA report were selected for testing from a total population of 38 subrecipient awards, and FFATA reports were not submitted timely for seven (7) subawards.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-005
Federal Program Title: HIV Prevention Activities Health Department Based
Federal Assistance Listing Number: 93.940
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 5 NU62PS924619-02-00, 5 NU62SP924619-03-00, 6 NU62PS924569-05-03; 6 NU62PS924569-05-04; 6 NU62PS924569-05-05; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the DPH’s compliance with the reporting requirement for the HIV Prevention Activities Health Department Based program, we noted that DPH submitted the FFATA reports for seven (7) subawards after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-010.
Cause
The program reported subaward agreements and modifications in December 2022 and at fiscal year-end in June 2023, rather than 30 days after when the subaward agreements or modifications occurred.
Effect
Failure to submit the FFATA reports results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Ten (10) subawards requiring the submission of a FFATA report were selected for testing from a total population of 38 subrecipient awards, and FFATA reports were not submitted timely for seven (7) subawards.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-002
Federal Program Title: Maternal and Child Health Services Block Grant to the States
Federal Assistance Listing Number: 93.994
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: California Department of Health Care Services/Public Health Institute
Federal Award Number and Year: 202219; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. At a minimum, the schedule must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number (ALN).
Condition
During our audit of the DPH’s Maternal and Child Health Services Block Grant to the States (MCH) program, we noted that DPH incorrectly reported expenditures for the MCH Program in the SEFA. $2,163,020 in expenditures for ALN 93.778 Medicaid Assistance Program, were reported as MCH Program expenditures under ALN 93.994. The SEFA was corrected to properly report the expenditures under both ALNs.
Cause
DPH used funds from ALN 93.778 Medicaid Assistance Program, as matching funds for the MCH Program, as allowed by the MCH Program. While DPH tracked the expenditures for the two ALNs separately, it reported all of the expenditures in the SEFA under the MCH Program.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit and the timely completion of the Single Audit. The MCH program was selected as a Type B program and audited for FY 2022-23. Upon correcting the error identified, an additional Type B program was required to be selected for audit, as MCH fell below the Type B program threshold for FY 2022-23 and did not need to be considered in the County’s risk assessment.
Questioned Costs
Questioned costs were not identified.
Context
The MCH Program originally reported total expenditures of $3,361,264 in FY 2022-23 for two different federal programs: ALN 93.994 for $1,198,244 and ALN 93.778 for $2,163,020. DPH reported the expenditures as $3,361,264 for ALN 93.994 and $0 for ALN 93.778. The SEFA was corrected to appropriately report the expenditures in ALN 93.994 and ALN 93.778.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure expenditures are reported under the correct federal program ALN.
Reference Number: 2023-009
Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds
Federal Assistance Listing Number: 21.027
Federal Agency: U.S. Department of Treasury
Pass-Through Entity: N/A
Federal Award Number and Year: Fiscal Year 2022-23
Name of Department: County Executive Office
Internal Services Department
Department of Consumer Business Affairs
Department of Aging
Category of Finding: Subrecipient Monitoring
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.332, all pass-through entities (PTE) must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the following information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Required information includes:
(1) Federal award identification:
(i.) Subrecipient name (which must match the name associated with its unique entity identifier);
(ii.) Subrecipient's unique entity identifier;
(iii.) Federal Award Identification Number (FAIN);
(iv.) Federal Award Date (see the definition of Federal award date in § 200.1 of this part) of award to the recipient by the Federal agency;
(v.) Subaward Period of Performance Start and End Date;
(vi.) Subaward Budget Period Start and End Date;
(vii.) Amount of Federal Funds Obligated by this action by the pass-through entity to the subrecipient;
(viii.) Total Amount of Federal Funds Obligated to the subrecipient by the pass-through entity including the current financial obligation;
(ix.) Total Amount of the Federal Award committed to the subrecipient by the pass-through entity;
(x.) Federal award project description, as required to be responsive to the Federal Funding Accountability and Transparency Act (FFATA);
(xi.) Name of Federal awarding agency, pass-through entity, and contact information for awarding official of the Pass-through entity;
(xii.) Assistance Listings number and Title; the pass-through entity must identify the dollar amount made available under each Federal award and the Assistance Listings Number at time of disbursement;
(xiii.) Identification of whether the award is R&D; and
(xiv.) Indirect cost rate for the Federal award (including if the de minimis rate is charged) per § 200.414.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring described in paragraphs (d) and (e) of this section.
(d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved.
(f) Verify that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in § 200.501.
Condition
During our audit of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program, we selected twenty-three (23) subrecipients with active contracts with the County during FY 2022-23.
• One (1) contract administered by the Internal Services Department (ISD) did not include one or more of the required elements defined in 2 CFR § 200.332 (a)(1) in the subrecipients’ agreements.
• One (1) contract administered by the Department of Consumer Affairs (DCBA) did not include one or more of the required elements defined in 2 CFR § 200.332(a)(1) in the subrecipients’ agreements.
• For four (4) contracts administered by the Aging Department (AD), the AD did not perform subrecipient monitoring related to the CSLFRF program during FY 2022-23.
Cause
Due to the urgency to implement the CSLFRF program, the Notice of Federal Subaward Information was not completed and provided to the subrecipient for two (2) contracts. The AD was not aware of the requirement to conduct subrecipient monitoring related to the CSLFR program and did not perform subrecipient monitoring of four (4) contracts.
Effect
Failure to provide all the required subaward information may result in subrecipients incorrectly reporting on federal pass-through awards in their Single Audit reports. Failure to document monitoring results in noncompliance with the subrecipient monitoring requirements 2 CFR § 200.332.
Questioned Costs
Questioned costs were not determinable.
Context
Of the twenty-three (23) subrecipients selected for testing, which totaled $71,323,434, from a population of 124 subrecipients with expenditures totaling $90,592,053:
• The departments did not communicate all of the required subaward data elements for two (2) subrecipients with expenditures totaling $7,305,087.
• The AD did not perform subrecipient monitoring for four (4) subrecipients with expenditures totaling $8,542,012.
The sample was not a statistically valid sample.
Recommendation
We recommend the County perform the following:
1. Remind departments that the Notice of Federal Subaward Information is a required attachment for all subrecipient agreements. In addition, subaward contract templates should be reviewed and revised to include placeholders for required information 2 CFR § 200.332(a)(1).
2. For existing subrecipients that were not provided the required elements, provide a letter or amended agreement to include all the required elements of 2 CFR § 200.332(a)(1).
3. Maintain sufficient records of monitoring subrecipients in accordance with subrecipient monitoring requirements.
Reference Number: 2023-010
Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds
Federal Assistance Listing Number: 21.027
Federal Agency: U.S. Department of Treasury
Pass-Through Entity: N/A
Federal Award Number and Year: Fiscal Year 2022-23
Name of Department: County Executive Office
Department of Public Health
Category of Finding: Period of Performance
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.1, period of performance is the total estimated time interval between the start of an initial Federal award and the planned end date, which may include one or more funded portions, or budget periods. Identification of the period of performance in the Federal award per § 200.211(b)(5) does not commit the awarding agency to fund the award beyond the currently approved budget period.
Per 2 CFR § 200.403 in order for costs to be allowable under Federal awards (h) cost must be incurred during the approved budget period. Per 2 CFR § 200.1, the budget period is the time interval from the start date of a funded portion of an award to the end date of that funded portion during which recipients are authorized to expend the funds awarded.
Per 31 CFR § 35.5, a recipient may only use Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) for the purposes enumerated in § 35.6 (b) through (f) to cover costs incurred during the period beginning March 3, 2021, and ending December 31, 2024.
Condition
During our audit of the CSLFRF program, we selected twenty-five (25) employees with payroll expenditures included in the County’s CSLFRF claims during FY 2022-23, and the expenditures for two employees were incurred before March 3, 2021.
Cause
DPH made adjustments to employee expenditure codes to improve the capture and claiming of eligible costs in October 2022; however, certain transactions were erroneously captured from May 2020 and February 2021, which is outside the period of performance.
Effect
Submitting claims with costs incurred or obligated prior to the period of performance start date of March 3, 2021, results in unallowable costs and noncompliance with the period of performance requirements 31 CFR 35.5.
Questioned Costs
Known questioned costs were $4,703.
Context
Of the twenty-five (25) employees selected for testing, which totaled $59,861, from a population of more than 250 employees in five departments with expenditures totaling $43,302,346, expenditures were included for two employees totaling $4,703 that were incurred before the period of performance began March 3, 2021.
The sample was not a statistically valid sample.
Recommendation
We recommend the County verify the date worked for all employees included in the CSLFRF claims was incurred or obligated on or after March 3, 2021.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22
Name of Department: Department of Public Health
Category of Finding: Schedule of Expenditure of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.502 states:
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force.
Condition
During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA.
Cause
The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022.
Effect
Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit.
Questioned Costs
Questioned costs were not identified.
Context
The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit.
Recommendation
We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-004
Federal Program Title: Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response
Federal Assistance Listing Number: 93.354
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU90TP922183-01-03; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the DPH’s compliance with the reporting requirement for the Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response (PHER) program, we noted that DPH submitted the FFATA reports for two (2) subawards after the due date. See the Notes to the SEFA for chart/table.
Cause
Due to working on deadlines for the annual closing of multiple grants and claims submissions, it was an oversight that the FFATA report was not submitted on time.
Effect
Failure to submit the FFATA reports results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Two (2) subawards requiring the submission of a FFATA report were selected for testing from a total population of three (3) subrecipient awards, and FFATA reports were not submitted timely for two (2) subawards.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-004
Federal Program Title: Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response
Federal Assistance Listing Number: 93.354
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU90TP922183-01-03; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the DPH’s compliance with the reporting requirement for the Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response (PHER) program, we noted that DPH submitted the FFATA reports for two (2) subawards after the due date. See the Notes to the SEFA for chart/table.
Cause
Due to working on deadlines for the annual closing of multiple grants and claims submissions, it was an oversight that the FFATA report was not submitted on time.
Effect
Failure to submit the FFATA reports results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Two (2) subawards requiring the submission of a FFATA report were selected for testing from a total population of three (3) subrecipient awards, and FFATA reports were not submitted timely for two (2) subawards.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-006
Federal Program Title: Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response
Federal Assistance Listing Number: 93.354
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU90TP922183-01-03; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Procurement and Suspension and Debarment
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
Procurement
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.318:
(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
2 CFR § 200.319 states:
(a) All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and § 200.320.
2 CFR § 200.320 states:
The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award.
Suspension and Debarment
In addition, in accordance with 2 CFR § 180.200 a covered transaction is a nonprocurement or procurement transaction that is subject to the prohibitions of this part.
Per 2 CFR § 180.970(a), nonprocurement transaction means any transaction, regardless of type (except procurement contracts), including, but not limited to grants.
According to 2 CFR § 180.300, when the County enters into a covered transaction with another person at the next lower tier, the County must verify that the person is not excluded or disqualified. The County can do this by:
1. Checking System for Award Management (SAM) exclusions
2. Collecting a certification from that person; or
3. Adding a clause or condition to the covered transaction with that person.
Per 2 CFR § 180.985, person means any individual, corporation, partnership, association, unit of government, or legal entity, however organized.
Condition
During our audit of the Department of Public Health (DPH) compliance with the procurement and suspension and debarment requirements for the Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response Program, we noted that for one (1) contract, DPH did not provide documentation related to the history of the procurement. Therefore, we were unable to determine whether DPH complied with the procurement requirements related to the method of procurement, competition, and the basis for the contract price.
In addition, for the same one (1) contract, DPH did not provide documentation to demonstrate DPH verified that the vendor was not suspended or debarred from participating in federally funded contracts prior to entering into a covered transaction. Based on a subsequent review of the SAM exclusions, the vendor is not suspended or debarred.
Cause
The Office of the County Counsel stated the contract was privileged from disclosure under attorney-client privilege and did not provide the contract or procurement related documentation. In addition, County Counsel stated the contract did not contain an explicit debarment provision and did not provide documentation that Sam.gov was reviewed or a certification from the vendor.
Effect
Not providing sufficient documentation to auditors to demonstrate compliance with federal compliance results in an audit scope limitation. Failure to document verification of suspension and debarment results in noncompliance with 2 CFR § 180.300, and there is a risk that federal funds may be used to pay subrecipients and vendors that are suspended or debarred.
Questioned Costs
Questioned costs were not identified.
Context
For the six (6) contracts selected for testing, which totaled $37,256,347 from a population of eight (8) contracts with expenditures totaling $37,874,851, DPH did not provide procurement and suspension and debarment documentation for one (1) contract with expenditures totaling $1,499,482.
The sample was not a statistically valid sample.
Recommendation
We recommend County departments discuss and document sensitive legal matters funded by federal funds with respective grantors to obtain guidance and direction on addressing audit requests. In addition, we recommend that DPH ensure sufficient documentation is maintained and available to demonstrate compliance with suspension or debarment. Acceptable items to confirm that vendors and subrecipients are not suspended or debarred are: 1) include a contract clause or condition to the covered transaction with that contractor, 2) search SAM exclusions prior to entering into a contract and maintain documentation of that verification, or 3) collect a certification from the contractor.
Reference Number: 2023-006
Federal Program Title: Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response
Federal Assistance Listing Number: 93.354
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU90TP922183-01-03; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Procurement and Suspension and Debarment
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
Procurement
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.318:
(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
2 CFR § 200.319 states:
(a) All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and § 200.320.
2 CFR § 200.320 states:
The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319 for any of the following methods of procurement used for the acquisition of property or services required under a Federal award or sub-award.
Suspension and Debarment
In addition, in accordance with 2 CFR § 180.200 a covered transaction is a nonprocurement or procurement transaction that is subject to the prohibitions of this part.
Per 2 CFR § 180.970(a), nonprocurement transaction means any transaction, regardless of type (except procurement contracts), including, but not limited to grants.
According to 2 CFR § 180.300, when the County enters into a covered transaction with another person at the next lower tier, the County must verify that the person is not excluded or disqualified. The County can do this by:
1. Checking System for Award Management (SAM) exclusions
2. Collecting a certification from that person; or
3. Adding a clause or condition to the covered transaction with that person.
Per 2 CFR § 180.985, person means any individual, corporation, partnership, association, unit of government, or legal entity, however organized.
Condition
During our audit of the Department of Public Health (DPH) compliance with the procurement and suspension and debarment requirements for the Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response Program, we noted that for one (1) contract, DPH did not provide documentation related to the history of the procurement. Therefore, we were unable to determine whether DPH complied with the procurement requirements related to the method of procurement, competition, and the basis for the contract price.
In addition, for the same one (1) contract, DPH did not provide documentation to demonstrate DPH verified that the vendor was not suspended or debarred from participating in federally funded contracts prior to entering into a covered transaction. Based on a subsequent review of the SAM exclusions, the vendor is not suspended or debarred.
Cause
The Office of the County Counsel stated the contract was privileged from disclosure under attorney-client privilege and did not provide the contract or procurement related documentation. In addition, County Counsel stated the contract did not contain an explicit debarment provision and did not provide documentation that Sam.gov was reviewed or a certification from the vendor.
Effect
Not providing sufficient documentation to auditors to demonstrate compliance with federal compliance results in an audit scope limitation. Failure to document verification of suspension and debarment results in noncompliance with 2 CFR § 180.300, and there is a risk that federal funds may be used to pay subrecipients and vendors that are suspended or debarred.
Questioned Costs
Questioned costs were not identified.
Context
For the six (6) contracts selected for testing, which totaled $37,256,347 from a population of eight (8) contracts with expenditures totaling $37,874,851, DPH did not provide procurement and suspension and debarment documentation for one (1) contract with expenditures totaling $1,499,482.
The sample was not a statistically valid sample.
Recommendation
We recommend County departments discuss and document sensitive legal matters funded by federal funds with respective grantors to obtain guidance and direction on addressing audit requests. In addition, we recommend that DPH ensure sufficient documentation is maintained and available to demonstrate compliance with suspension or debarment. Acceptable items to confirm that vendors and subrecipients are not suspended or debarred are: 1) include a contract clause or condition to the covered transaction with that contractor, 2) search SAM exclusions prior to entering into a contract and maintain documentation of that verification, or 3) collect a certification from the contractor.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.
Reference Number: 2023-003
Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Federal Assistance Listing Number: 93.323
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: N/A
Federal Award Number and Year: 6 NU50CK000498-02-06; Fiscal Year 2022-23
Name of Department: Department of Public Health
Category of Finding: Reporting
Type of Finding: Material Weakness in Internal Control Over Compliance; Instance of Noncompliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 170 – Reporting Subaward and Executive Compensation Information, Appendix A to Part 170 – Award Term, prime awardees awarded a Federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. A subaward may be provided through any legal agreement.
2 CFR § 200.303 states that the non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit of the Department of Public Health’s (DPH) compliance with the reporting requirement to file FFATA Reports for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH submitted the FFATA report for one (1) subaward after the due date. See the Notes to the SEFA for chart/table.
This is a repeat finding of 2022-009.
Cause
DPH used the date of a notice to the subrecipient, December 16, 2022, for FFATA reporting; and not the date of the subaward agreement’s amendment, October 5, 2022. The notice is not a legal agreement.
Effect
Failure to submit the FFATA reports on a timely basis results in noncompliance with the reporting requirements with 2 CFR Part 170.
Questioned Costs
Questioned costs were not identified.
Context
Five (5) subawards requiring the submission of a FFATA report were selected from a total population of seven (7) subawards, and a FFATA report was not submitted timely for one (1) subaward.
The sample was not a statistically valid sample.
Recommendation
We recommend that the DPH develop and document a process to identify, track and report all subaward agreements and modifications executed throughout the fiscal year and subject to FFATA reporting requirements.