Audit 327751

FY End
2022-12-31
Total Expended
$5.55M
Findings
2
Programs
3
Organization: Wichita County, Texas (TX)
Year: 2022 Accepted: 2024-11-08

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
505080 2022-001 Material Weakness - L
1081522 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.53M Yes 1
93.658 Foster Care Title IV-E $25,981 - 0
16.540 Juvenile Justice and Delinquency Prevention $833 - 0

Contacts

Name Title Type
G4LVLUW4JE18 Matt Davis Auditee
9407668100 Kevin Kemp Auditor
No contacts on file

Notes to SEFA

Title: Note 1.       Basis of Presentation Accounting Policies: Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedules of expenditures of federal and state awards (the “Schedules”) include the federal and state award activity of the County of Wichita, Texas (the “County”) under programs of the federal and state government for the year ended December 31, 2022. The information in these Schedules are 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), and Texas Grant Management Standards (TxGMS). Because the Schedules present only a selected portion of the operations of the County, they are not intended to and do not present the financial position or changes in net position/fund balance of the County.
Title: Note 2.       Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Note 3. Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The County has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4. Restatement Accounting Policies: Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. This Schedule of Expenditures of Federal Awards (SEFA) has been restated due to the subsequent identification of additional expenditures required to be reported under federal assistance listing #21.027, COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) which required further audit testing to be performed. Changes from the previously issued SEFA include an increase in federal expenditures reported under CSLFRF from $2,127,306 to $5,527,306 and an increase in total federal awards expended from $2,154,120 to $5,554,120.

Finding Details

Finding: Reporting Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Criteria: In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200.510, auditees receiving federal funds must prepare an annual Schedule of Expenditure of Federal Awards (SEFA) detailing the value and type of federal assistance received each year. The federal Office of Management and Budget issues instructions on how to prepare this schedule. Key information to be reported includes the assistance listing (AL) number provided in the federal awards/subaward agreements and associated expenditures incurred in the fiscal year. At the County, the SEFA is prepared by the Auditor’s Office based on information provided by various departments receiving Federal funds and information contained in the accounting system. Condition: One federal award expenditure amount was incorrectly reported. Total expenditures of $2.1 million originally reported for the Coronavirus State and Local Fiscal Recovery Funds were increased by $3.4 million to bring the final expenditures to $5.5 million for the year ended December 31, 2022. Questioned Costs: N/A Context: During the review of the support for the 2023 schedule of expenditures of federal awards, it was noted that $3.4 million of 2022 expenditures was incorrectly included in the population. Effect: The federal government and pass-through entities rely on the SEFA information to be reported accurately. In addition, accurate SEFA information is relied upon by the auditors in order to perform the major program determination utilized to select the federal programs subjected to single audit procedures. The condition resulted in the reissuance of the County’s 2022 Single Audit Report for restatement of the SEFA and inclusion of the AL #21.027, Coronavirus State and Local Fiscal Recovery Fund, at the proper amount of federal awards expended as of December 31, 2022. Cause: Internal controls and review processes were not in place to ensure the accuracy of expenditures reported on the annual SEFA. Identification as a repeat finding: N/A Recommendation: Management should implement procedures to help ensure that controls are in place that will allow for the accurate preparation of the SEFA. We recommend that the County perform a detailed analysis of expenditures for all significant awards on an annual basis. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding. See separate report for planned corrective actions.
Finding: Reporting Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Criteria: In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200.510, auditees receiving federal funds must prepare an annual Schedule of Expenditure of Federal Awards (SEFA) detailing the value and type of federal assistance received each year. The federal Office of Management and Budget issues instructions on how to prepare this schedule. Key information to be reported includes the assistance listing (AL) number provided in the federal awards/subaward agreements and associated expenditures incurred in the fiscal year. At the County, the SEFA is prepared by the Auditor’s Office based on information provided by various departments receiving Federal funds and information contained in the accounting system. Condition: One federal award expenditure amount was incorrectly reported. Total expenditures of $2.1 million originally reported for the Coronavirus State and Local Fiscal Recovery Funds were increased by $3.4 million to bring the final expenditures to $5.5 million for the year ended December 31, 2022. Questioned Costs: N/A Context: During the review of the support for the 2023 schedule of expenditures of federal awards, it was noted that $3.4 million of 2022 expenditures was incorrectly included in the population. Effect: The federal government and pass-through entities rely on the SEFA information to be reported accurately. In addition, accurate SEFA information is relied upon by the auditors in order to perform the major program determination utilized to select the federal programs subjected to single audit procedures. The condition resulted in the reissuance of the County’s 2022 Single Audit Report for restatement of the SEFA and inclusion of the AL #21.027, Coronavirus State and Local Fiscal Recovery Fund, at the proper amount of federal awards expended as of December 31, 2022. Cause: Internal controls and review processes were not in place to ensure the accuracy of expenditures reported on the annual SEFA. Identification as a repeat finding: N/A Recommendation: Management should implement procedures to help ensure that controls are in place that will allow for the accurate preparation of the SEFA. We recommend that the County perform a detailed analysis of expenditures for all significant awards on an annual basis. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding. See separate report for planned corrective actions.