Audit 301575

FY End
2023-06-30
Total Expended
$84.90M
Findings
4
Programs
55
Organization: Polk County, Iowa (IA)
Year: 2023 Accepted: 2024-04-01
Auditor: Rsm US LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
390868 2023-001 Significant Deficiency - M
390869 2023-002 - - M
967310 2023-001 Significant Deficiency - M
967311 2023-002 - - M

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $6.00M Yes 2
10.558 Child and Adult Care Food Program $2.04M - 0
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $744,644 - 0
93.568 Low-Income Home Energy Assistance $688,649 - 0
93.069 Public Health Emergency Preparedness $663,404 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $642,794 - 0
93.778 Medical Assistance Program $560,013 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $487,166 - 0
10.565 Commodity Supplemental Food Program $297,956 - 0
16.593 Residential Substance Abuse Treatment for State Prisoners $262,687 - 0
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $192,600 - 0
66.605 Performance Partnership Grants $164,191 - 0
93.053 Nutrition Services Incentive Program $147,598 - 0
93.667 Social Services Block Grant $131,287 - 0
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $129,220 - 0
10.904 Watershed Protection and Flood Prevention $121,242 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $120,625 - 0
93.268 Immunization Cooperative Agreements $118,440 - 0
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $108,199 - 0
15.623 North American Wetlands Conservation Fund $105,000 - 0
93.658 Foster Care_title IV-E $103,781 - 0
21.032 Local Assistance and Tribal Consistency Fund $100,000 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $84,000 - 0
93.917 Hiv Care Formula Grants $78,603 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $74,694 Yes 0
45.024 Promotion of the Arts_grants to Organizations and Individuals $70,470 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $64,037 - 0
10.555 National School Lunch Program $63,459 - 0
93.659 Adoption Assistance $59,334 - 0
66.460 Nonpoint Source Implementation Grants $58,395 - 0
16.575 Crime Victim Assistance $41,601 - 0
97.042 Emergency Management Performance Grants $39,000 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $36,070 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $35,454 - 0
21.016 Equitable Sharing $33,082 - 0
93.558 Temporary Assistance for Needy Families $27,915 - 0
64.034 Va Assistance to United States Paralympic Integrated Adaptive Sports Program $26,079 - 0
10.553 School Breakfast Program $24,297 - 0
81.042 Weatherization Assistance for Low-Income Persons $22,696 - 0
93.556 Promoting Safe and Stable Families $19,885 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $19,000 - 0
20.205 Highway Planning and Construction $17,065 - 0
16.922 Equitable Sharing Program $16,468 - 0
20.600 State and Community Highway Safety $14,195 - 0
93.472 Title IV-E Prevention and Family Services and Programs (a) $13,277 - 0
93.940 Hiv Prevention Activities_health Department Based $12,303 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $12,000 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $11,506 - 0
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $10,860 - 0
93.767 Children's Health Insurance Program $8,116 - 0
20.616 National Priority Safety Programs $2,468 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $2,212 - 0
93.436 Well-Integrated Screening and Evaluation for Women Across the Nation (wisewoman) $1,650 - 0
16.710 Public Safety Partnership and Community Policing Grants $1,608 - 0
93.090 Guardianship Assistance $38 - 0

Contacts

Name Title Type
K32TGXKSEL64 Joellen Bigelow Auditee
5152863419 Kevin Smith Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Revenue from federal awards is recognized when the County has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal grants is recognized when they become both measurable and available. Expenditures allowable in accordance with the grant agreement are recognized when they are incurred and become a demand on current available financial resources. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Polk County, Iowa for the year ended June 30, 2023. All federal financial awards received directly from federal agencies, as well as federal financial awards passed through other government agencies expended during the year, is included in the schedule. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" (Uniform Guidance). Because the schedule presents only a select portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position or cash flows of the County.
Title: Significant Accounting Policies Accounting Policies: Revenue from federal awards is recognized when the County has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal grants is recognized when they become both measurable and available. Expenditures allowable in accordance with the grant agreement are recognized when they are incurred and become a demand on current available financial resources. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Revenue from federal awards is recognized when the County has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal grants is recognized when they become both measurable and available. Expenditures allowable in accordance with the grant agreement are recognized when they are incurred and become a demand on current available financial resources. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowed or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: Revenue from federal awards is recognized when the County has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal grants is recognized when they become both measurable and available. Expenditures allowable in accordance with the grant agreement are recognized when they are incurred and become a demand on current available financial resources. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The County has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Noncash Assistance Accounting Policies: Revenue from federal awards is recognized when the County has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal grants is recognized when they become both measurable and available. Expenditures allowable in accordance with the grant agreement are recognized when they are incurred and become a demand on current available financial resources. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Commodity Supplemental Food Distribution Program - Direct - Federal Assistance Listing 10.565 does not involve cash awards. This award is received in donated commondities. The value of the commodities distributed during the fiscal year ended June 30, 2023, was $1,208,911. As of June 30, 2023, the County had commodities on hand with a value of $109,389.
Title: Remitted funds Accounting Policies: Revenue from federal awards is recognized when the County has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal grants is recognized when they become both measurable and available. Expenditures allowable in accordance with the grant agreement are recognized when they are incurred and become a demand on current available financial resources. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. During the fiscal year ended June 30, 2023, $6,573,239 was returned by a subrecipient that did not expend ERA funds by the end of the contract period. These funds were still on hand as of June 30, 2023 and were paid to the Department of Treasury in March 2024.

Finding Details

Finding 2023-001: Subrecipient Monitoring – Significant Deficiency U.S. Department of Treasury COVID-19 Emergency Rental Assistance Program, Assistance Listing No. 21.023 Federal Award Year: 2023 Criteria: A pass-through entity must monitor the activities of subrecipients as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f)). In addition to procedures identified as necessary based upon the evaluation of subrecipient risk or specifically required by the terms and conditions of the award, subaward monitoring must include the following: • Reviewing financial and programmatic (performance and special reports) required by the pass-through entity. • Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and other means. • Issuing a management decision for findings pertaining to the federal award provided to the subrecipient from the pass-through entity as required by 2 CFR section 200.521. Condition: The County did not have adequate internal controls in place to obtain and review the detailed records that supported the subrecipient’s quarterly expenditure reports. In addition, the County did not obtain the subrecipient’s audit reports and or issue management’s decisions on any findings that were reported. Cause: Management of the County did not have adequate internal controls in place to meet the compliance requirements of this federal grant program. Effect or potential effect: Inadequate monitoring of subrecipients could result in actions take by the oversight agency which could impact future funding. Questioned costs: None Context: Federal grant award of $6 million was passed through to one subrecipient during the year ending June 30, 2023 under this program. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: We recommend that the County establish controls to ensure that program staff understand and follow necessary requirements for monitoring subrecipients. Views of responsible officials and auditee: Management agrees with the finding.
Finding 2023-002: Subrecipient Monitoring U.S. Department of Treasury COVID-19 Emergency Rental Assistance Program, Assistance Listing No. 21.023 Questioned costs: None See finding 2023-001 Identification as a repeat finding, if applicable: This is not a repeat finding.
Finding 2023-001: Subrecipient Monitoring – Significant Deficiency U.S. Department of Treasury COVID-19 Emergency Rental Assistance Program, Assistance Listing No. 21.023 Federal Award Year: 2023 Criteria: A pass-through entity must monitor the activities of subrecipients as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f)). In addition to procedures identified as necessary based upon the evaluation of subrecipient risk or specifically required by the terms and conditions of the award, subaward monitoring must include the following: • Reviewing financial and programmatic (performance and special reports) required by the pass-through entity. • Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and other means. • Issuing a management decision for findings pertaining to the federal award provided to the subrecipient from the pass-through entity as required by 2 CFR section 200.521. Condition: The County did not have adequate internal controls in place to obtain and review the detailed records that supported the subrecipient’s quarterly expenditure reports. In addition, the County did not obtain the subrecipient’s audit reports and or issue management’s decisions on any findings that were reported. Cause: Management of the County did not have adequate internal controls in place to meet the compliance requirements of this federal grant program. Effect or potential effect: Inadequate monitoring of subrecipients could result in actions take by the oversight agency which could impact future funding. Questioned costs: None Context: Federal grant award of $6 million was passed through to one subrecipient during the year ending June 30, 2023 under this program. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: We recommend that the County establish controls to ensure that program staff understand and follow necessary requirements for monitoring subrecipients. Views of responsible officials and auditee: Management agrees with the finding.
Finding 2023-002: Subrecipient Monitoring U.S. Department of Treasury COVID-19 Emergency Rental Assistance Program, Assistance Listing No. 21.023 Questioned costs: None See finding 2023-001 Identification as a repeat finding, if applicable: This is not a repeat finding.