Audit 336127

FY End
2023-12-31
Total Expended
$17.73M
Findings
12
Programs
33
Organization: Tuscarawas County (OH)
Year: 2023 Accepted: 2025-01-07

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
517885 2023-001 Material Weakness Yes I
517886 2023-002 Material Weakness Yes C
517887 2023-003 Material Weakness - A
517888 2023-001 Material Weakness Yes I
517889 2023-003 Material Weakness - A
517890 2023-002 Material Weakness Yes C
1094327 2023-001 Material Weakness Yes I
1094328 2023-002 Material Weakness Yes C
1094329 2023-003 Material Weakness - A
1094330 2023-001 Material Weakness Yes I
1094331 2023-003 Material Weakness - A
1094332 2023-002 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
93.658 Foster Care Title IV-E $1.81M - 0
93.558 Temporary Assistance for Needy Families $1.33M - 0
93.659 Adoption Assistance $493,453 - 0
20.205 Highway Planning and Construction $380,435 Yes 0
14.239 Home Investment Partnerships Program $354,969 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $280,119 - 0
93.563 Child Support Services $271,276 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $105,804 - 0
93.575 Child Care and Development Block Grant $75,864 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $69,299 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $68,369 Yes 1
16.034 Coronavirus Emergency Supplemental Funding Program $52,945 - 0
93.667 Social Services Block Grant $51,997 Yes 2
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $51,651 - 0
84.425 Education Stabilization Fund $48,473 - 0
93.747 Elder Abuse Prevention Interventions Program $45,276 - 0
21.032 Local Assistance and Tribal Consistency Fund $28,823 - 0
93.472 Title IV-E Prevention Program $24,976 - 0
16.575 Crime Victim Assistance $24,101 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $20,415 - 0
84.027 Special Education Grants to States $11,672 - 0
90.404 Hava Election Security Grants $9,590 - 0
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $9,530 - 0
93.778 Medical Assistance Program $7,139 - 0
97.039 Hazard Mitigation Grant $6,090 - 0
84.173 Special Education Preschool Grants $5,105 - 0
97.042 Emergency Management Performance Grants $4,312 - 0
15.226 Payments in Lieu of Taxes $2,824 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $1,476 - 0
20.600 State and Community Highway Safety $1,172 - 0
16.607 Bulletproof Vest Partnership Program $994 - 0
15.433 Flood Control Act Lands $460 - 0
15.611 Wildlife Restoration and Basic Hunter Education and Safety $75 - 0

Contacts

Name Title Type
GEA2F1JB3QQ5 Larry Lindberg Auditee
3303648811 Denise Blair 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 Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Tuscarawas County (the County) under programs of the federal government for the year ended December 31, 2023. The information on this Schedule is prepared 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 the County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the 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 Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the 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 Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
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 Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE D - SUBRECIPIENTS 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 Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The County passes certain federal awards received from COVID-19 Coronavirus State and Local Fiscal Recovery Funds grant to United Way of Tuscarawas County (subrecipients) for their Tuff Bags Project. As Note B describes, the County reports expenditures of Federal awards to subrecipients when paid in cash. As a pass-through entity, the County has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance goals.
Title: NOTE E - MATCHING REQUIREMENTS 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 Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Certain Federal programs require the County to contribute non-Federal funds (matching funds) to support the Federally-funded programs. The County has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.
Title: NOTE F - TRANSFERS BETWEEN FEDERAL PROGRAMS 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 Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. During fiscal year 2023, the County made allowable transfers of $463,556 from the Temporary Assistance for Needy Families (TANF) (AL #93.558) program to the Social Services Block Grant (SSBG) (AL #93.667) program. The Schedule shows the County spent approximately $1,331,599 on the TANF program. The amount reported for the TANF program on the Schedule excludes the amount transferred to the SSBG program. The amount transferred to the SSBG program is included as SSBG expenditures when disbursed. The following table shows the gross amount drawn for the TANF program during fiscal year 2023 and the amount transferred to the Social Services Block Grant program

Finding Details

31 C.F.R. § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. 31 C.F.R. § 19.210 provides that all nonprocurement transactions, as defined in § 19.970 are covered transactions unless listed in § 19.215. 31 C.F.R. § 19.220(b) provides, in part, that a contract for goods or services is a covered transaction if the contract is awarded by a participant in a nonprocurement transaction that is covered under § 19.210, and the amount of the contract is expected to equal or exceed $25,000. 31 C.F.R. § 19.300 provides that when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified. You do this by: (a) checking the EPLS; or (b) collecting a certification from that person if allowed by this rule; or (c) adding a clause or condition to the covered transaction with that person. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transactions, had not been suspended or debarred. During testing of procurement for the State and Local Fiscal Recovery Fund, Assistance Listing #21.027, we noted one instance where the County had a payment to a vendor of more than $25,000 and there was no evidence the County checked the EPLS, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor. Due to the deficient internal control structure, the required verification was not completed for one of the three contracts tested with covered transaction in the State and Local Fiscal Recovery Fund during Fiscal Year 2023. Failing to implement appropriate controls may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the County should verify the vendor is not suspended or debarred by checking the EPLS, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
45 C.F.R. § 75.305(b) states for non-Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Ohio Admin. Code 5101:9-7-03(B)(1) states the County Departments of Job and Family Services shall have cash management procedures in place to ensure the time elapsing between the receipt of funds and the disbursement of funds does not exceed a ten-day average for all federal funding. The days equivalent cash-on-hand for Tuscarawas County Job and Family Services averaged to 50 days per review of the CR 502 reports in 2023. Therefore, the cash on hand exceeded the allowable number of days by 40 for the year. The Tuscarawas County Job and Family Services should implement internal control procedures that would limit cash draws to amounts only immediately needed. Procedures should include, but are not limited to, a review of expenditures and requesting limited drawdowns that would ensure that cash on hand is expended within the ten-day requirement.
45 C.F.R. § 75.405(a) states, in part, that a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. In order to be allocable, it must benefit both the Federal award and other work of the non-Federal entity and be distributed in proportions that may be approximated using reasonable methods. The Ohio Department of Job and Family Services (ODJFS) has implemented a cost allocation plan approved by the US Department of Health and Human services and has communicated time sampling requirements for said plan to county agencies. This is provided for within 45 C.F.R. § 75.430, which states, in part, that random moment sampling (RMS) may be utilized for allocating salaries and wages to Federal awards. Ohio Admin. Code 5101:9-7-20 outlines the procedures to be utilized for random moment sampling time studies designed to measure activity regarding various Federal programs passed through the Ohio Department of Job and Family Services. Ohio Admin. Code 5101:9-7-20(E)(3) states the employee receiving an observation moment will have forty-eight hours to respond, not including weekends or holidays. In addition, Ohio Admin. Code 5101:9-7-20(E)(2)(b) requires the employee completing the RMS observation moment to complete the comment section. Comments shall demonstrate that the selected program and activity codes support the work being performed by the assigned position at the time of the observation. 1. An employee working on a case shall include a case number or other unique identifier establishing case/client identity. 2. An employee not working on a case enters comments. The employee shall ensure that adequate backup documentation is available to verify the activity being performed. 3. An employee attending a meeting or training at the time of the observation moment shall enter the title/subject, location, and facilitator. 4. An employee on break, at lunch, on leave or on personal business at the time of the observation shall indicate the position was idle. Additionally, Ohio Admin. Code 5101:9-7-20(F) requires the RMS coordinator to review and approved by accepting all observation moment responses within seventy-two hours. The Tuscarawas County Job and Family Service’s (TCJFS) had the following RMS exceptions occur in the 60 hits tested from the quarter selected for 2023: • Two instances (3.3%) where the employee did not timely complete the observation in the forty-eight-hour period. • Two instances (3.3%) where the RMS coordinator did not timely approve the observation in the seventy-two-hour period. • One instance (1.6%) where the employee did not complete the observation properly as the observation stated that the employee was on leave even though she was not. • Three instances (5%) where the employee failed to properly maintain adequate backup documentation to verify the activity being performed. Failure to accurately record the RMS activity and in a timely manner can result in inaccurate allocation of charges to federal programs in the cost pool. The TCJFS should review RMS requirements and establish procedures to ensure that observations are completed and approved timely within the guidelines of Ohio Admin. Code 5101:9-7-20. Additionally, procedures should be implemented to ensure that adequate documentation is maintained to support the activity code charged. This will help to minimize the risk of observations being completed inaccurately and be unaccepted by ODJFS.
31 C.F.R. § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. 31 C.F.R. § 19.210 provides that all nonprocurement transactions, as defined in § 19.970 are covered transactions unless listed in § 19.215. 31 C.F.R. § 19.220(b) provides, in part, that a contract for goods or services is a covered transaction if the contract is awarded by a participant in a nonprocurement transaction that is covered under § 19.210, and the amount of the contract is expected to equal or exceed $25,000. 31 C.F.R. § 19.300 provides that when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified. You do this by: (a) checking the EPLS; or (b) collecting a certification from that person if allowed by this rule; or (c) adding a clause or condition to the covered transaction with that person. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transactions, had not been suspended or debarred. During testing of procurement for the State and Local Fiscal Recovery Fund, Assistance Listing #21.027, we noted one instance where the County had a payment to a vendor of more than $25,000 and there was no evidence the County checked the EPLS, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor. Due to the deficient internal control structure, the required verification was not completed for one of the three contracts tested with covered transaction in the State and Local Fiscal Recovery Fund during Fiscal Year 2023. Failing to implement appropriate controls may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the County should verify the vendor is not suspended or debarred by checking the EPLS, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
45 C.F.R. § 75.405(a) states, in part, that a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. In order to be allocable, it must benefit both the Federal award and other work of the non-Federal entity and be distributed in proportions that may be approximated using reasonable methods. The Ohio Department of Job and Family Services (ODJFS) has implemented a cost allocation plan approved by the US Department of Health and Human services and has communicated time sampling requirements for said plan to county agencies. This is provided for within 45 C.F.R. § 75.430, which states, in part, that random moment sampling (RMS) may be utilized for allocating salaries and wages to Federal awards. Ohio Admin. Code 5101:9-7-20 outlines the procedures to be utilized for random moment sampling time studies designed to measure activity regarding various Federal programs passed through the Ohio Department of Job and Family Services. Ohio Admin. Code 5101:9-7-20(E)(3) states the employee receiving an observation moment will have forty-eight hours to respond, not including weekends or holidays. In addition, Ohio Admin. Code 5101:9-7-20(E)(2)(b) requires the employee completing the RMS observation moment to complete the comment section. Comments shall demonstrate that the selected program and activity codes support the work being performed by the assigned position at the time of the observation. 1. An employee working on a case shall include a case number or other unique identifier establishing case/client identity. 2. An employee not working on a case enters comments. The employee shall ensure that adequate backup documentation is available to verify the activity being performed. 3. An employee attending a meeting or training at the time of the observation moment shall enter the title/subject, location, and facilitator. 4. An employee on break, at lunch, on leave or on personal business at the time of the observation shall indicate the position was idle. Additionally, Ohio Admin. Code 5101:9-7-20(F) requires the RMS coordinator to review and approved by accepting all observation moment responses within seventy-two hours. The Tuscarawas County Job and Family Service’s (TCJFS) had the following RMS exceptions occur in the 60 hits tested from the quarter selected for 2023: • Two instances (3.3%) where the employee did not timely complete the observation in the forty-eight-hour period. • Two instances (3.3%) where the RMS coordinator did not timely approve the observation in the seventy-two-hour period. • One instance (1.6%) where the employee did not complete the observation properly as the observation stated that the employee was on leave even though she was not. • Three instances (5%) where the employee failed to properly maintain adequate backup documentation to verify the activity being performed. Failure to accurately record the RMS activity and in a timely manner can result in inaccurate allocation of charges to federal programs in the cost pool. The TCJFS should review RMS requirements and establish procedures to ensure that observations are completed and approved timely within the guidelines of Ohio Admin. Code 5101:9-7-20. Additionally, procedures should be implemented to ensure that adequate documentation is maintained to support the activity code charged. This will help to minimize the risk of observations being completed inaccurately and be unaccepted by ODJFS.
45 C.F.R. § 75.305(b) states for non-Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Ohio Admin. Code 5101:9-7-03(B)(1) states the County Departments of Job and Family Services shall have cash management procedures in place to ensure the time elapsing between the receipt of funds and the disbursement of funds does not exceed a ten-day average for all federal funding. The days equivalent cash-on-hand for Tuscarawas County Job and Family Services averaged to 50 days per review of the CR 502 reports in 2023. Therefore, the cash on hand exceeded the allowable number of days by 40 for the year. The Tuscarawas County Job and Family Services should implement internal control procedures that would limit cash draws to amounts only immediately needed. Procedures should include, but are not limited to, a review of expenditures and requesting limited drawdowns that would ensure that cash on hand is expended within the ten-day requirement.
31 C.F.R. § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. 31 C.F.R. § 19.210 provides that all nonprocurement transactions, as defined in § 19.970 are covered transactions unless listed in § 19.215. 31 C.F.R. § 19.220(b) provides, in part, that a contract for goods or services is a covered transaction if the contract is awarded by a participant in a nonprocurement transaction that is covered under § 19.210, and the amount of the contract is expected to equal or exceed $25,000. 31 C.F.R. § 19.300 provides that when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified. You do this by: (a) checking the EPLS; or (b) collecting a certification from that person if allowed by this rule; or (c) adding a clause or condition to the covered transaction with that person. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transactions, had not been suspended or debarred. During testing of procurement for the State and Local Fiscal Recovery Fund, Assistance Listing #21.027, we noted one instance where the County had a payment to a vendor of more than $25,000 and there was no evidence the County checked the EPLS, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor. Due to the deficient internal control structure, the required verification was not completed for one of the three contracts tested with covered transaction in the State and Local Fiscal Recovery Fund during Fiscal Year 2023. Failing to implement appropriate controls may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the County should verify the vendor is not suspended or debarred by checking the EPLS, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
45 C.F.R. § 75.305(b) states for non-Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Ohio Admin. Code 5101:9-7-03(B)(1) states the County Departments of Job and Family Services shall have cash management procedures in place to ensure the time elapsing between the receipt of funds and the disbursement of funds does not exceed a ten-day average for all federal funding. The days equivalent cash-on-hand for Tuscarawas County Job and Family Services averaged to 50 days per review of the CR 502 reports in 2023. Therefore, the cash on hand exceeded the allowable number of days by 40 for the year. The Tuscarawas County Job and Family Services should implement internal control procedures that would limit cash draws to amounts only immediately needed. Procedures should include, but are not limited to, a review of expenditures and requesting limited drawdowns that would ensure that cash on hand is expended within the ten-day requirement.
45 C.F.R. § 75.405(a) states, in part, that a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. In order to be allocable, it must benefit both the Federal award and other work of the non-Federal entity and be distributed in proportions that may be approximated using reasonable methods. The Ohio Department of Job and Family Services (ODJFS) has implemented a cost allocation plan approved by the US Department of Health and Human services and has communicated time sampling requirements for said plan to county agencies. This is provided for within 45 C.F.R. § 75.430, which states, in part, that random moment sampling (RMS) may be utilized for allocating salaries and wages to Federal awards. Ohio Admin. Code 5101:9-7-20 outlines the procedures to be utilized for random moment sampling time studies designed to measure activity regarding various Federal programs passed through the Ohio Department of Job and Family Services. Ohio Admin. Code 5101:9-7-20(E)(3) states the employee receiving an observation moment will have forty-eight hours to respond, not including weekends or holidays. In addition, Ohio Admin. Code 5101:9-7-20(E)(2)(b) requires the employee completing the RMS observation moment to complete the comment section. Comments shall demonstrate that the selected program and activity codes support the work being performed by the assigned position at the time of the observation. 1. An employee working on a case shall include a case number or other unique identifier establishing case/client identity. 2. An employee not working on a case enters comments. The employee shall ensure that adequate backup documentation is available to verify the activity being performed. 3. An employee attending a meeting or training at the time of the observation moment shall enter the title/subject, location, and facilitator. 4. An employee on break, at lunch, on leave or on personal business at the time of the observation shall indicate the position was idle. Additionally, Ohio Admin. Code 5101:9-7-20(F) requires the RMS coordinator to review and approved by accepting all observation moment responses within seventy-two hours. The Tuscarawas County Job and Family Service’s (TCJFS) had the following RMS exceptions occur in the 60 hits tested from the quarter selected for 2023: • Two instances (3.3%) where the employee did not timely complete the observation in the forty-eight-hour period. • Two instances (3.3%) where the RMS coordinator did not timely approve the observation in the seventy-two-hour period. • One instance (1.6%) where the employee did not complete the observation properly as the observation stated that the employee was on leave even though she was not. • Three instances (5%) where the employee failed to properly maintain adequate backup documentation to verify the activity being performed. Failure to accurately record the RMS activity and in a timely manner can result in inaccurate allocation of charges to federal programs in the cost pool. The TCJFS should review RMS requirements and establish procedures to ensure that observations are completed and approved timely within the guidelines of Ohio Admin. Code 5101:9-7-20. Additionally, procedures should be implemented to ensure that adequate documentation is maintained to support the activity code charged. This will help to minimize the risk of observations being completed inaccurately and be unaccepted by ODJFS.
31 C.F.R. § 19.200 identifies “covered transactions” as nonprocurement or procurement transactions at the primary tier, between a Federal agency and a person; or at the lower tier, between a participant in a covered transaction and another person. 31 C.F.R. § 19.210 provides that all nonprocurement transactions, as defined in § 19.970 are covered transactions unless listed in § 19.215. 31 C.F.R. § 19.220(b) provides, in part, that a contract for goods or services is a covered transaction if the contract is awarded by a participant in a nonprocurement transaction that is covered under § 19.210, and the amount of the contract is expected to equal or exceed $25,000. 31 C.F.R. § 19.300 provides that when you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified. You do this by: (a) checking the EPLS; or (b) collecting a certification from that person if allowed by this rule; or (c) adding a clause or condition to the covered transaction with that person. The County did not have the proper internal controls in place to verify that all entities, with whom the County had entered into covered transactions, had not been suspended or debarred. During testing of procurement for the State and Local Fiscal Recovery Fund, Assistance Listing #21.027, we noted one instance where the County had a payment to a vendor of more than $25,000 and there was no evidence the County checked the EPLS, collected a certification from the entity, or added a clause or condition to the covered transaction with the vendor. Due to the deficient internal control structure, the required verification was not completed for one of the three contracts tested with covered transaction in the State and Local Fiscal Recovery Fund during Fiscal Year 2023. Failing to implement appropriate controls may result in vendors receiving federal funds that are suspended or debarred. Prior to contracting with vendors that will be paid with federal funds, the County should verify the vendor is not suspended or debarred by checking the EPLS, collecting a certification from the vendor, or adding a clause or condition to the covered transaction with the vendor.
45 C.F.R. § 75.405(a) states, in part, that a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. In order to be allocable, it must benefit both the Federal award and other work of the non-Federal entity and be distributed in proportions that may be approximated using reasonable methods. The Ohio Department of Job and Family Services (ODJFS) has implemented a cost allocation plan approved by the US Department of Health and Human services and has communicated time sampling requirements for said plan to county agencies. This is provided for within 45 C.F.R. § 75.430, which states, in part, that random moment sampling (RMS) may be utilized for allocating salaries and wages to Federal awards. Ohio Admin. Code 5101:9-7-20 outlines the procedures to be utilized for random moment sampling time studies designed to measure activity regarding various Federal programs passed through the Ohio Department of Job and Family Services. Ohio Admin. Code 5101:9-7-20(E)(3) states the employee receiving an observation moment will have forty-eight hours to respond, not including weekends or holidays. In addition, Ohio Admin. Code 5101:9-7-20(E)(2)(b) requires the employee completing the RMS observation moment to complete the comment section. Comments shall demonstrate that the selected program and activity codes support the work being performed by the assigned position at the time of the observation. 1. An employee working on a case shall include a case number or other unique identifier establishing case/client identity. 2. An employee not working on a case enters comments. The employee shall ensure that adequate backup documentation is available to verify the activity being performed. 3. An employee attending a meeting or training at the time of the observation moment shall enter the title/subject, location, and facilitator. 4. An employee on break, at lunch, on leave or on personal business at the time of the observation shall indicate the position was idle. Additionally, Ohio Admin. Code 5101:9-7-20(F) requires the RMS coordinator to review and approved by accepting all observation moment responses within seventy-two hours. The Tuscarawas County Job and Family Service’s (TCJFS) had the following RMS exceptions occur in the 60 hits tested from the quarter selected for 2023: • Two instances (3.3%) where the employee did not timely complete the observation in the forty-eight-hour period. • Two instances (3.3%) where the RMS coordinator did not timely approve the observation in the seventy-two-hour period. • One instance (1.6%) where the employee did not complete the observation properly as the observation stated that the employee was on leave even though she was not. • Three instances (5%) where the employee failed to properly maintain adequate backup documentation to verify the activity being performed. Failure to accurately record the RMS activity and in a timely manner can result in inaccurate allocation of charges to federal programs in the cost pool. The TCJFS should review RMS requirements and establish procedures to ensure that observations are completed and approved timely within the guidelines of Ohio Admin. Code 5101:9-7-20. Additionally, procedures should be implemented to ensure that adequate documentation is maintained to support the activity code charged. This will help to minimize the risk of observations being completed inaccurately and be unaccepted by ODJFS.
45 C.F.R. § 75.305(b) states for non-Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Ohio Admin. Code 5101:9-7-03(B)(1) states the County Departments of Job and Family Services shall have cash management procedures in place to ensure the time elapsing between the receipt of funds and the disbursement of funds does not exceed a ten-day average for all federal funding. The days equivalent cash-on-hand for Tuscarawas County Job and Family Services averaged to 50 days per review of the CR 502 reports in 2023. Therefore, the cash on hand exceeded the allowable number of days by 40 for the year. The Tuscarawas County Job and Family Services should implement internal control procedures that would limit cash draws to amounts only immediately needed. Procedures should include, but are not limited to, a review of expenditures and requesting limited drawdowns that would ensure that cash on hand is expended within the ten-day requirement.