FAC Explorer

Audit 316331

FY End
2023-09-30
Total Expended
$5.32M
Findings
2
Programs
3
Organization: Harrison County, Texas (TX)
Year: 2023 Accepted: 2024-07-31
Auditor: Pattillo Brown & Hill LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479808 2023-001 Significant Deficiency Yes L
1056250 2023-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.28M Yes 1
10.555 National School Lunch Program $20,328 - 0
93.658 Foster Care_title IV-E $14,709 - 0

Contacts

Name Title Type
UG35L5W9LG75 Becky Haynes Auditee
3618880556 John K. Manning Auditor
No contacts on file

Notes to SEFA

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the County under programs of the federal government for the year ended September 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the County, it is not intended and does not present the financial position, changes in net position/fund balance or cash flows of the County. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance. The County accounts for federal funding using the modified accrual basis of accounting. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e. both measurable and available, and expenditures in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences, claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenue until earned. Generally, unused balances are returned to the grantor at the close of specified project periods.

Finding Details

Finding 2023-001
Item 2023-001 Coronavirus State and Local Fiscal Recovery Fund, ALN 21.027 Type Significant Deficiency Compliance Requirement Reporting Criteria The U.S. Department of Treasury SLFRF Compliance and Reporting Guidance requires the County prepare quarterly submissions of the Project and Expenditure Report. The 2023 Compliance Supplement identifies multiple Key Line Items in the report, including cumulative expenditures and current period expenditures. Internal control should be established and maintained to provide reasonable assurance that these requirements are complied with by submitting the reports accurately. Condition For the first two quarters of the fiscal year under audit, the Project and Expenditure Report reported cumulative expenditures as program income, and the total obligation was reported as cumulative expenditures before the amounts had actually been spent. Cause The County followed a process for reviewing the reports and understanding program requirements; however, the new and emerging nature of the program and related guidance limited the internal knowledge necessary to identify the errors. Effect Required reports submitted to the Federal Agency contained inaccuracies to identified key elements. Recommendation We recommend that the County expand its review process for key reports to consider if new or emerging funding merits additional staff training or the engagement of outside assistance. Management’s Response We agree with the finding and have initiated discussions to provide training and implement procedures to ensure compliance. The last two quarterly reports prepared and sent to the U.S. Department of Treasury during fiscal year 2023 were corrected.
Finding 2023-001
Item 2023-001 Coronavirus State and Local Fiscal Recovery Fund, ALN 21.027 Type Significant Deficiency Compliance Requirement Reporting Criteria The U.S. Department of Treasury SLFRF Compliance and Reporting Guidance requires the County prepare quarterly submissions of the Project and Expenditure Report. The 2023 Compliance Supplement identifies multiple Key Line Items in the report, including cumulative expenditures and current period expenditures. Internal control should be established and maintained to provide reasonable assurance that these requirements are complied with by submitting the reports accurately. Condition For the first two quarters of the fiscal year under audit, the Project and Expenditure Report reported cumulative expenditures as program income, and the total obligation was reported as cumulative expenditures before the amounts had actually been spent. Cause The County followed a process for reviewing the reports and understanding program requirements; however, the new and emerging nature of the program and related guidance limited the internal knowledge necessary to identify the errors. Effect Required reports submitted to the Federal Agency contained inaccuracies to identified key elements. Recommendation We recommend that the County expand its review process for key reports to consider if new or emerging funding merits additional staff training or the engagement of outside assistance. Management’s Response We agree with the finding and have initiated discussions to provide training and implement procedures to ensure compliance. The last two quarterly reports prepared and sent to the U.S. Department of Treasury during fiscal year 2023 were corrected.