Audit 321563

2022-003 Suspension and Debarment Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLT 4867, 2022 Pass-Through Agency: N/A – Direct Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Federal requirements prohibit non-federal entities from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Title 2 U.S. Code of Federal Regulations § 180.300 describes a required verification process. Prior to entering into the transaction, one of the following must be performed: (1) checking SAM.gov exclusions, (2) collecting a certification, or (3) adding a clause or condition to the covered transaction. The suspension and debarment requirements apply to covered transactions over $25,000. Entities must use their documented procurement process compliance. Condition: For one of two covered transactions tested, the verification for suspended or debarred vendors was not performed before entering into the covered transaction. Questioned Costs: None Context: The County entered into two covered transactions; both were tested for compliance with suspension and debarment requirements. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The County is not in compliance with federal regulations. Cause: The County has procedures in place to perform verification and retain documentation, but not all department heads are aware of the procedures or federal regulations. Recommendation: We recommend the County review its policies and communicate with management and staff their responsibility for complying with federal regulations and maintaining documentation to support that compliance. View of Responsible Official: Concur

2022-004 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLT 4867, 2022 Pass-Through Agency: N/A – Direct Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The U.S. Department of the Treasury requires an annual Project and Expenditure Report submitted for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that include current period expenditures. The Annual Project and Expenditure Report is required to be submitted to the U.S. Treasury by April 30 of each year. Condition: The County incorrectly reported no current period expenditures on the Annual Project and Expenditure report submitted to the U.S. Treasury for 2022 when they should have reported $32,671. Questioned Costs: None Context: The $32,671 was included with expenditures reported on the March 31, 2023, report. Effect: The U.S. Treasury Department did not receive accurate current period expenditures for the Annual Project and Expenditure Reports. Cause: County staff responsible for completing and submitting the March 2022 Annual Project and Expenditure Report misinterpreted the guidance for reporting. Recommendation: We recommend that the County reviews its Annual Project and Expenditure report to ensure that the amounts reported are complete and accurate. View of Responsible Official: Concur

2022-003 Suspension and Debarment Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLT 4867, 2022 Pass-Through Agency: N/A – Direct Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Federal requirements prohibit non-federal entities from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Title 2 U.S. Code of Federal Regulations § 180.300 describes a required verification process. Prior to entering into the transaction, one of the following must be performed: (1) checking SAM.gov exclusions, (2) collecting a certification, or (3) adding a clause or condition to the covered transaction. The suspension and debarment requirements apply to covered transactions over $25,000. Entities must use their documented procurement process compliance. Condition: For one of two covered transactions tested, the verification for suspended or debarred vendors was not performed before entering into the covered transaction. Questioned Costs: None Context: The County entered into two covered transactions; both were tested for compliance with suspension and debarment requirements. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The County is not in compliance with federal regulations. Cause: The County has procedures in place to perform verification and retain documentation, but not all department heads are aware of the procedures or federal regulations. Recommendation: We recommend the County review its policies and communicate with management and staff their responsibility for complying with federal regulations and maintaining documentation to support that compliance. View of Responsible Official: Concur

2022-004 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLT 4867, 2022 Pass-Through Agency: N/A – Direct Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The U.S. Department of the Treasury requires an annual Project and Expenditure Report submitted for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that include current period expenditures. The Annual Project and Expenditure Report is required to be submitted to the U.S. Treasury by April 30 of each year. Condition: The County incorrectly reported no current period expenditures on the Annual Project and Expenditure report submitted to the U.S. Treasury for 2022 when they should have reported $32,671. Questioned Costs: None Context: The $32,671 was included with expenditures reported on the March 31, 2023, report. Effect: The U.S. Treasury Department did not receive accurate current period expenditures for the Annual Project and Expenditure Reports. Cause: County staff responsible for completing and submitting the March 2022 Annual Project and Expenditure Report misinterpreted the guidance for reporting. Recommendation: We recommend that the County reviews its Annual Project and Expenditure report to ensure that the amounts reported are complete and accurate. View of Responsible Official: Concur