Audit 328308

Finding No. 2023-003 – Reporting and Special Provisions Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grant Assistance Listing Number: 14.228 Award Period: February 1, 2021 – January 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Non-federal entities are required by Uniform Guidance to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our audit, we identified that the County did not establish adequate internal control over compliance with federal reporting requirements and special wage provisions as mandated by Uniform Guidance. Context: The County engages an external consultant to assist with administration of the federal grant. The County relies entirely on the consultant to submit required reporting to the grantor and to review required certified payrolls provided by contractors. No one from the County is currently involved in the review and approval of grant reports or certified payrolls. Effect: Lack of internal control over compliance could result in noncompliance with federal reporting requirements and special wage provisions, potentially leading to penalties or loss of federal funding. Cause: Management informed us that no County employees review the required reporting prior to submission to the grantor nor do they review the required certified payrolls provided by contractors. Repeat Finding: Finding was not reported in the previous fiscal year. Recommendation: We recommend that the County establish and maintain effective internal control over compliance with federal reporting requirements and special wage provisions as mandated by Uniform Guidance. County employees involved with internal control over compliance should have a thorough understanding of Uniform Guidance and the applicable compliance requirements of the federal grant, as well as knowledge of the County’s activities and operations. Views of responsible officials and planned corrective action: Management will ensure that all grant reports submitted to federal agencies are reviewed and approved by the Tazewell County manager overseeing the grant prior to submission. The County will review and approve all necessary supporting documents including certified payrolls to verify compliance with federal reporting requirements and guidelines. When outside consultants are engaged to aid in grant administration, the appropriate Tazewell County manager will be responsible for reviewing and approving all required reporting and supporting documentation prepared on the County’s behalf.

Finding No. 2023-003 – Reporting and Special Provisions Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grant Assistance Listing Number: 14.228 Award Period: February 1, 2021 – January 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Non-federal entities are required by Uniform Guidance to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our audit, we identified that the County did not establish adequate internal control over compliance with federal reporting requirements and special wage provisions as mandated by Uniform Guidance. Context: The County engages an external consultant to assist with administration of the federal grant. The County relies entirely on the consultant to submit required reporting to the grantor and to review required certified payrolls provided by contractors. No one from the County is currently involved in the review and approval of grant reports or certified payrolls. Effect: Lack of internal control over compliance could result in noncompliance with federal reporting requirements and special wage provisions, potentially leading to penalties or loss of federal funding. Cause: Management informed us that no County employees review the required reporting prior to submission to the grantor nor do they review the required certified payrolls provided by contractors. Repeat Finding: Finding was not reported in the previous fiscal year. Recommendation: We recommend that the County establish and maintain effective internal control over compliance with federal reporting requirements and special wage provisions as mandated by Uniform Guidance. County employees involved with internal control over compliance should have a thorough understanding of Uniform Guidance and the applicable compliance requirements of the federal grant, as well as knowledge of the County’s activities and operations. Views of responsible officials and planned corrective action: Management will ensure that all grant reports submitted to federal agencies are reviewed and approved by the Tazewell County manager overseeing the grant prior to submission. The County will review and approve all necessary supporting documents including certified payrolls to verify compliance with federal reporting requirements and guidelines. When outside consultants are engaged to aid in grant administration, the appropriate Tazewell County manager will be responsible for reviewing and approving all required reporting and supporting documentation prepared on the County’s behalf.