FAC Explorer

Audit 329966

FY End
2023-06-30
Total Expended
$4.32M
Findings
2
Programs
5
Organization: Boone County Fiscal Court (KY)
Year: 2023 Accepted: 2024-11-26
Auditor: Allison Ball Auditor of Public Accounts

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512206 2023-001 Significant Deficiency Yes L
1088648 2023-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.05M Yes 1
20.205 Highway Planning and Construction $932,728 Yes 0
97.042 Emergency Management Performance Grants $45,250 - 0
16.606 State Criminal Alien Assistance Program $19,792 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $13,212 - 0

Contacts

Name Title Type
WFWZSDV1H194 Robert Notton Auditee
8593343147 Shawnna Crouse Auditor
No contacts on file

Notes to SEFA

Title: Boone County Assisted Housing Department Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule 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: Boone County has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Boone County Assisted Housing Department's Schedule of Expenditures of Federal Awards were not included on the County's Schedule of Expenditures of Federal Awards. A separate Uniform Guidance audit was conducted on the Boone County Assisted Housing Department's Financial Statements and therefore are excluded.

Finding Details

Finding 2023-001
Name of Federal Agency and Pass-Through Agency: U.S. Department of the Treasury Compliance Requirements: Reporting Type of Finding: Significant Deficiency Amount of Questioned Costs: None Identification of Questioned Costs and How Computed: None identified COVID Related: Yes Repeat Finding: Repeat finding of 2022-004. When submitting required quarterly project and expenditure reports, the county improperly identified two entities as being subrecipients instead of contractors. Those responsible for the federal awards did not have a clear understanding of the difference between a subrecipient and a contractor. The reporting guidance was not clear on the definition of a subrecipient versus a contractor and resulted in a misunderstanding. Two entities could potentially be identified as subrecipients and therefore be subject to a single audit when they should not be. Per 2 CFR § 200.331, “a pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursements of Federal program funds casts the party receiving the funds in the role of a subrecipient or a contractor.” We recommend the county review the requirements for determining whether a disbursement qualifies as a payment to a subrecipient or a contractor and ensure all of those that administer federal funding have an understanding of the terms.
Finding 2023-001
Name of Federal Agency and Pass-Through Agency: U.S. Department of the Treasury Compliance Requirements: Reporting Type of Finding: Significant Deficiency Amount of Questioned Costs: None Identification of Questioned Costs and How Computed: None identified COVID Related: Yes Repeat Finding: Repeat finding of 2022-004. When submitting required quarterly project and expenditure reports, the county improperly identified two entities as being subrecipients instead of contractors. Those responsible for the federal awards did not have a clear understanding of the difference between a subrecipient and a contractor. The reporting guidance was not clear on the definition of a subrecipient versus a contractor and resulted in a misunderstanding. Two entities could potentially be identified as subrecipients and therefore be subject to a single audit when they should not be. Per 2 CFR § 200.331, “a pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursements of Federal program funds casts the party receiving the funds in the role of a subrecipient or a contractor.” We recommend the county review the requirements for determining whether a disbursement qualifies as a payment to a subrecipient or a contractor and ensure all of those that administer federal funding have an understanding of the terms.