FAC Explorer

Audit 334643

FY End
2023-12-31
Total Expended
$2.46M
Findings
2
Programs
8
Organization: Shannon County, Missouri (MO)
Year: 2023 Accepted: 2024-12-23
Auditor: Stopp & Vanhoy CPAS and Business Advisors LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516660 2023-004 Significant Deficiency - L
1093102 2023-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $588,859 Yes 1
15.226 Payments in Lieu of Taxes $519,786 Yes 0
10.665 Schools and Roads - Grants to States $478,326 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $378,868 - 0
15.438 National Forest Acquired Lands $249,136 - 0
21.032 Local Assistance and Tribal Consistency Fund $155,346 - 0
90.404 Hava Election Security Grants $16,734 - 0
16.575 Crime Victim Assistance $10,381 - 0

Contacts

Name Title Type
G2V3K5DJWQ39 Shelly Bland Auditee
5732263414 Mollie Malone Auditor
No contacts on file

Notes to SEFA

Title: Donated Personal Protective Equipment Accounting Policies: Purpose of Schedule and Reporting Entity: The accompanying Schedule of Expenditures of Federal Awards has been prepared to comply 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). This Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the assistance listing number or other identifying number when the assistance listing number is not available. This schedule includes all federal awards administered by Shannon County, Missouri. Basis of Presentation: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards includes these definitions, which govern the contents of the schedule: Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals. Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under grants or contracts, used to buy goods or services from vendors. Because the Schedule presents only a selected portion of the operations of Shannon County, Missouri, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Shannon County, Missouri. Basis of Accounting: The accompanying Schedule of Expenditures of Federal Awards is presented 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 allowed or are limited as to reimbursement. Federal expenditures are considered to have occurred when cash is disbursed for allowable expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not request reimbursement for indirect costs. The County received no donated personal protective equipment which had been purchased with federal funds. This footnote is unaudited.

Finding Details

Finding 2023-004
Criteria: Title 2 U.S. Code of Federal Regulations Part 200 requires recipients of Federal awards to comply with laws, regulations, and provisions of contract or grant agreements related to each of its Federal programs. Participants in the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program were required to complete financial, performance, and compliance reporting as outlined in Part 2 of the SLFRF Compliance and Reporting Guide, issued by the U.S. Department of the Treasury. The County was required to appropriately maintain accounting records for compiling and reporting accurate, compliant financial data, in accordance with appropriate accounting standards and principles. Condition: The County elected to obligate funds for the provision of government services in accordance with the $10 million standard allowance exemption as outlined in the 2022 Final Rule guidance; the standard allowance provision allows a recipient to reimburse itself for eligible past expenditures incurred on or after March 3, 2021 through the date of the standard allowance election. COVID-19 Coronavirus State and Local Fiscal Recovery Funds are considered obligated and expended on the date that the Commission authorizes the expenditures and cash is disbursed for the authorized use. Accordingly, the County expended $282,366 between April 1, 2022 and March 31, 2023 which was required to be reported on the Project and Expenditure Report due April 30, 2023. The County's annual report for the applicable reporting period, which was timely filed on April 28, 2023, reported $17,936. Condition: Management has not implemented internal controls related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). During our audit we noted the SEFA contained errors. Cause: Oversight. Effect: The Project and Expenditure Report due by April 30, 2023, which covered the period of April 1, 2022 - March 31, 2023, was submitted with inaccurate expenditures. Total cumulative expenditures reported under the County's revenue replacement category for the covered period totaled $17,936, however, the County's underlying accounting records supported total cumulative expenditures for the covered period of $282,366, resulting in a misstatement of $234,430. Recommendation: We recommend that the County implement internal controls to ensure that the Project and Expenditure reports completely and accurately state the cumulative expenditures and current period expenditures of funds expended under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds including performing a reconciliation between the reporting to be submitted and the underlying accounting records. Additionally, the County should include the omitted expenditures in the next Project and Expenditure Report submission using the procedures reflected in the U.S. Department of Treasury Project and Expenditure Report Guide, as applicable to the covered period being submitted. Management's Response: The Treasurer is preparing and reporting COVID-19 funds and will work with the County Clerk to ensure correct reporting in the future. The expected implementation date will be in the next reporting cycle of April 2024.
Finding 2023-004
Criteria: Title 2 U.S. Code of Federal Regulations Part 200 requires recipients of Federal awards to comply with laws, regulations, and provisions of contract or grant agreements related to each of its Federal programs. Participants in the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program were required to complete financial, performance, and compliance reporting as outlined in Part 2 of the SLFRF Compliance and Reporting Guide, issued by the U.S. Department of the Treasury. The County was required to appropriately maintain accounting records for compiling and reporting accurate, compliant financial data, in accordance with appropriate accounting standards and principles. Condition: The County elected to obligate funds for the provision of government services in accordance with the $10 million standard allowance exemption as outlined in the 2022 Final Rule guidance; the standard allowance provision allows a recipient to reimburse itself for eligible past expenditures incurred on or after March 3, 2021 through the date of the standard allowance election. COVID-19 Coronavirus State and Local Fiscal Recovery Funds are considered obligated and expended on the date that the Commission authorizes the expenditures and cash is disbursed for the authorized use. Accordingly, the County expended $282,366 between April 1, 2022 and March 31, 2023 which was required to be reported on the Project and Expenditure Report due April 30, 2023. The County's annual report for the applicable reporting period, which was timely filed on April 28, 2023, reported $17,936. Condition: Management has not implemented internal controls related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). During our audit we noted the SEFA contained errors. Cause: Oversight. Effect: The Project and Expenditure Report due by April 30, 2023, which covered the period of April 1, 2022 - March 31, 2023, was submitted with inaccurate expenditures. Total cumulative expenditures reported under the County's revenue replacement category for the covered period totaled $17,936, however, the County's underlying accounting records supported total cumulative expenditures for the covered period of $282,366, resulting in a misstatement of $234,430. Recommendation: We recommend that the County implement internal controls to ensure that the Project and Expenditure reports completely and accurately state the cumulative expenditures and current period expenditures of funds expended under the COVID-19 Coronavirus State and Local Fiscal Recovery Funds including performing a reconciliation between the reporting to be submitted and the underlying accounting records. Additionally, the County should include the omitted expenditures in the next Project and Expenditure Report submission using the procedures reflected in the U.S. Department of Treasury Project and Expenditure Report Guide, as applicable to the covered period being submitted. Management's Response: The Treasurer is preparing and reporting COVID-19 funds and will work with the County Clerk to ensure correct reporting in the future. The expected implementation date will be in the next reporting cycle of April 2024.