Audit 331384

FY End
2022-09-30
Total Expended
$828,284
Findings
2
Programs
5
Organization: Smith County, Mississippi (MS)
Year: 2022 Accepted: 2024-12-09

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
513530 2022-003 Material Weakness - N
1089972 2022-003 Material Weakness - N

Programs

Contacts

Name Title Type
DGTZHYKZ79K5 Heather Dolan Auditee
6017824000 Joe McKnight Auditor
No contacts on file

Notes to SEFA

Title: Note A - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the cash 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 credit made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: Smith County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Smith County under programs of the federal government for the year ended September 30, 2022. The information in this Schedule is 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). Because the Schedule presents only a selected portion of the operations of Smith County, it is not intended to and does not present the financial position, changes in net position, or cash flows of Smith County.
Title: Note B - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the cash 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 credit made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: Smith County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. Expenditures reported on the Schedule are reported on the cash 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.
Title: Note C - Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the cash 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 credit made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: Smith County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. Smith County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
Title: Note D - Schools and Roads - Grants to States Accounting Policies: Expenditures reported on the Schedule are reported on the cash 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 credit made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: Smith County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. Of the federal expenditures presented in the Schedule, the County provided federal awards totaling $171,741 to subrecipients during the year ended September 30, 2022.

Finding Details

Compliance Requirement Special Tests and Provisions Material Weakness Material Noncompliance 2022-003. The County should establish controls to ensure the public comment period requirement is following before using Title III funds. Assistance Listing Number 10.665 Federal Award Schools and Roads – Grants to States Federal Agency U.S. Department of Agriculture - Forest Service Pass-through Mississippi State Treasurer’s Office Questioned Costs None Context There were two transactions noted for Title III expenditures. Repeat Finding No Criteria The 2022 OMB Compliance Supplement and the U.S. Code, Title 16, Section 7142(b) specifies that a participating county can use Title III funds only after a 45-day public comment period, at the beginning of which the participating county shall (1) publish in any publications of local record a proposal that describes the proposed use of the county funds and (2) submit the proposal to any resource advisory committee established under U.S. Code, Title 16, Section 7125 for the participating county. Condition The County did not provide the required public notice prior to using Title III funds nor was the 45-day comment period observed before any Title III funds were expended. Also, the County did not have documentation of the proposal to the resource advisory committee. Cause The County lacked the necessary controls over the public comment period federal requirement. Effect Failure to provide the required public notice and observe the 45-day comment period before any Title III funds were expended could result in funds being used for unallowable purposes. Recommendation The County should implement adequate internal controls to ensure that the County follows the public comment period requirement with using Title III funds. Also, the County should document submission of the proposal to the resource advisory committee.
Compliance Requirement Special Tests and Provisions Material Weakness Material Noncompliance 2022-003. The County should establish controls to ensure the public comment period requirement is following before using Title III funds. Assistance Listing Number 10.665 Federal Award Schools and Roads – Grants to States Federal Agency U.S. Department of Agriculture - Forest Service Pass-through Mississippi State Treasurer’s Office Questioned Costs None Context There were two transactions noted for Title III expenditures. Repeat Finding No Criteria The 2022 OMB Compliance Supplement and the U.S. Code, Title 16, Section 7142(b) specifies that a participating county can use Title III funds only after a 45-day public comment period, at the beginning of which the participating county shall (1) publish in any publications of local record a proposal that describes the proposed use of the county funds and (2) submit the proposal to any resource advisory committee established under U.S. Code, Title 16, Section 7125 for the participating county. Condition The County did not provide the required public notice prior to using Title III funds nor was the 45-day comment period observed before any Title III funds were expended. Also, the County did not have documentation of the proposal to the resource advisory committee. Cause The County lacked the necessary controls over the public comment period federal requirement. Effect Failure to provide the required public notice and observe the 45-day comment period before any Title III funds were expended could result in funds being used for unallowable purposes. Recommendation The County should implement adequate internal controls to ensure that the County follows the public comment period requirement with using Title III funds. Also, the County should document submission of the proposal to the resource advisory committee.