Audit 328309

Finding No. 2021-005 – Allowable Costs/Activities Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Award Period: March 3, 2021 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria According to the CSLFRF guidelines, eligible workers receiving premium pay must earn, with the premium included, at or below 150 percent of their residing state or county’s average annual wage for all occupations, as defined by the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics, whichever is higher, on an annual basis. Condition During our audit, we identified that the County did not have adequate internal controls in place to ensure compliance with the requirement that eligible workers receiving premium pay earn at or below 150 percent of their residing state or county’s average annual wage for all occupations. Specifically, we noted instances in which workers receiving premium pay exceeded this threshold. As such, the County did not effectively apply its designed internal control over compliance. Context We noted 11 ineligible workers receiving premium pay. Effect Premium pay was awarded to ineligible workers, leading to questioned costs and noncompliance with federal compliance requirements. Cause Management informed us that the questioned costs were caused by a lack of proper oversight and review procedures to verify that the premium pay awarded to eligible workers complied with the specified wage threshold. There was a failure of the County’s designed internal control over compliance. Questioned Costs $46,525 Repeat Finding Finding was not reported in the previous fiscal year. Section III – Federal Award Findings and Questioned Costs (Continued) Finding No. 2021-005 – Allowable Costs/Activities (Continued) Recommendation We recommend that the County more effectively implement its internal controls over compliance to ensure that costs charged to federal grants are allowable and meet all other applicable compliance requirements. The employee administering the federal grant 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 Actions The County engaged an outside consultant to assist with compliance and reporting of the CSLFRF grant. Moving forward, management will ensure that a County employee, if working with a consultant or otherwise, be responsible for verifying compliance with all aspects of all federal grants.

Finding No. 2021-005 – Allowable Costs/Activities Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Award Period: March 3, 2021 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria According to the CSLFRF guidelines, eligible workers receiving premium pay must earn, with the premium included, at or below 150 percent of their residing state or county’s average annual wage for all occupations, as defined by the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics, whichever is higher, on an annual basis. Condition During our audit, we identified that the County did not have adequate internal controls in place to ensure compliance with the requirement that eligible workers receiving premium pay earn at or below 150 percent of their residing state or county’s average annual wage for all occupations. Specifically, we noted instances in which workers receiving premium pay exceeded this threshold. As such, the County did not effectively apply its designed internal control over compliance. Context We noted 11 ineligible workers receiving premium pay. Effect Premium pay was awarded to ineligible workers, leading to questioned costs and noncompliance with federal compliance requirements. Cause Management informed us that the questioned costs were caused by a lack of proper oversight and review procedures to verify that the premium pay awarded to eligible workers complied with the specified wage threshold. There was a failure of the County’s designed internal control over compliance. Questioned Costs $46,525 Repeat Finding Finding was not reported in the previous fiscal year. Section III – Federal Award Findings and Questioned Costs (Continued) Finding No. 2021-005 – Allowable Costs/Activities (Continued) Recommendation We recommend that the County more effectively implement its internal controls over compliance to ensure that costs charged to federal grants are allowable and meet all other applicable compliance requirements. The employee administering the federal grant 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 Actions The County engaged an outside consultant to assist with compliance and reporting of the CSLFRF grant. Moving forward, management will ensure that a County employee, if working with a consultant or otherwise, be responsible for verifying compliance with all aspects of all federal grants.