Audit 315668

Finding 2023‐001: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The County’s reports submitted to the Department of Treasury were not reviewed and approved by a separate individual outside of the preparer. Cause: The County did not have an internal control process in place to ensure a secondary review and approval of the reports submitted to the Department of Treasury were performed by someone other than the preparer of the report. Effect: Without a secondary review and approval, there is a possibility that the report may not be accurately completed. Questioned Costs: None. Context / Sampling: For the Coronavirus State and Local Fiscal Recovery Funds, one of one annual report was tested – sampling was not performed. Repeat Finding from Prior Year: No Recommendation: We recommend the County implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.

Finding 2023‐002: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement Suspension and Debarment Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Per 31 CFR 19.300, prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR § 19.300. Condition: The County did not maintain evidence of review of state and federal debarred vendor listing for three vendors receiving SLFRF funds. Cause: The County indicated review was performed, but no internal policy required the documentation of evidence of the review of SAM.gov and Texas Comptroller debarred vendor listings. Effect: No evidence that any SLFRF funds were provided to debarred vendors. Questioned Costs: None Context / Sampling: We tested 3 of 3 transactions subject to suspension and debarment in the SLFRF program. Repeat Finding from Prior Year: No Recommendation: To avoid the potential of missing review of the debarred vendor listings, the County should require documentation of review of the debarred vendor listings at least semi‐annually. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.

Finding 2023‐001: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The County’s reports submitted to the Department of Treasury were not reviewed and approved by a separate individual outside of the preparer. Cause: The County did not have an internal control process in place to ensure a secondary review and approval of the reports submitted to the Department of Treasury were performed by someone other than the preparer of the report. Effect: Without a secondary review and approval, there is a possibility that the report may not be accurately completed. Questioned Costs: None. Context / Sampling: For the Coronavirus State and Local Fiscal Recovery Funds, one of one annual report was tested – sampling was not performed. Repeat Finding from Prior Year: No Recommendation: We recommend the County implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.

Finding 2023‐002: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement Suspension and Debarment Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Per 31 CFR 19.300, prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR § 19.300. Condition: The County did not maintain evidence of review of state and federal debarred vendor listing for three vendors receiving SLFRF funds. Cause: The County indicated review was performed, but no internal policy required the documentation of evidence of the review of SAM.gov and Texas Comptroller debarred vendor listings. Effect: No evidence that any SLFRF funds were provided to debarred vendors. Questioned Costs: None Context / Sampling: We tested 3 of 3 transactions subject to suspension and debarment in the SLFRF program. Repeat Finding from Prior Year: No Recommendation: To avoid the potential of missing review of the debarred vendor listings, the County should require documentation of review of the debarred vendor listings at least semi‐annually. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.