Audit 330130

NONCOMPLIANCE WITH ALLOWABLE COSTS/COST PRINCIPLES; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No’s 113004 AND 112605, YEAR ENDED JUNE 30, 2023 Criteria: The cost principles in 2 CFR part 200, subpart E (Cost Principles), prescribe the cost accounting requirements associated with the administration of federal awards. Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Condition: Program expenditures were not separately identified in the general ledger. Further, costs submitted for reimbursement on the quarterly grant reports were higher than the general ledger by $20,159. Questioned Costs: $16,127. Cause: Unknown. Effect: Non-compliance Allowable Costs/Cost Principles and incorrect reimbursement amounts may have been received. Recommendation: The county should develop a process to separately identify program expenditures by cost category in the general ledger. Further, program administration should prepare the grant reimbursement reports from the general ledger and designate an individual to verify that amounts reported to the granting agency actually agree to the general ledger accounting records prior to filing. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.

SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Cause: There are a limited number of personnel for certain functions. Effect: Transactions could be mishandled. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH ALLOWABLE COSTS/COST PRINCIPLES; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No’s 113004 AND 112605, YEAR ENDED JUNE 30, 2023 Criteria: The cost principles in 2 CFR part 200, subpart E (Cost Principles), prescribe the cost accounting requirements associated with the administration of federal awards. Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Condition: Program expenditures were not separately identified in the general ledger. Further, costs submitted for reimbursement on the quarterly grant reports were higher than the general ledger by $20,159. Questioned Costs: $16,127. Cause: Unknown. Effect: Non-compliance Allowable Costs/Cost Principles and incorrect reimbursement amounts may have been received. Recommendation: The county should develop a process to separately identify program expenditures by cost category in the general ledger. Further, program administration should prepare the grant reimbursement reports from the general ledger and designate an individual to verify that amounts reported to the granting agency actually agree to the general ledger accounting records prior to filing. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.

SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Cause: There are a limited number of personnel for certain functions. Effect: Transactions could be mishandled. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH ALLOWABLE COSTS/COST PRINCIPLES; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No’s 113004 AND 112605, YEAR ENDED JUNE 30, 2023 Criteria: The cost principles in 2 CFR part 200, subpart E (Cost Principles), prescribe the cost accounting requirements associated with the administration of federal awards. Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Condition: Program expenditures were not separately identified in the general ledger. Further, costs submitted for reimbursement on the quarterly grant reports were higher than the general ledger by $20,159. Questioned Costs: $16,127. Cause: Unknown. Effect: Non-compliance Allowable Costs/Cost Principles and incorrect reimbursement amounts may have been received. Recommendation: The county should develop a process to separately identify program expenditures by cost category in the general ledger. Further, program administration should prepare the grant reimbursement reports from the general ledger and designate an individual to verify that amounts reported to the granting agency actually agree to the general ledger accounting records prior to filing. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.

SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Cause: There are a limited number of personnel for certain functions. Effect: Transactions could be mishandled. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH ALLOWABLE COSTS/COST PRINCIPLES; FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM; AL No. 20.509, GRANT No’s 113004 AND 112605, YEAR ENDED JUNE 30, 2023 Criteria: The cost principles in 2 CFR part 200, subpart E (Cost Principles), prescribe the cost accounting requirements associated with the administration of federal awards. Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Condition: Program expenditures were not separately identified in the general ledger. Further, costs submitted for reimbursement on the quarterly grant reports were higher than the general ledger by $20,159. Questioned Costs: $16,127. Cause: Unknown. Effect: Non-compliance Allowable Costs/Cost Principles and incorrect reimbursement amounts may have been received. Recommendation: The county should develop a process to separately identify program expenditures by cost category in the general ledger. Further, program administration should prepare the grant reimbursement reports from the general ledger and designate an individual to verify that amounts reported to the granting agency actually agree to the general ledger accounting records prior to filing. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.

SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Cause: There are a limited number of personnel for certain functions. Effect: Transactions could be mishandled. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.