Audit 336226

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement: Suspension and Debarment and Significant Deficiency In accordance with 2 CFR 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR Section 180.215. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Suspension and debarment checks were not completed for the subrecipients that received federal funds. Questioned Costs: None noted. Context: Only one subreceipient received pass-through funding from the Unified Government. The single subrecipient under both ALN 93.044 and 93.045, receiving approximately $180,000, was not evaluated for suspension and debarment. It was noted after subsequent check, that the subrecipient was not suspended or debarred. Identification of Prior Year Finding: 2022-007 Effect: Federal funds could be paid to entities that are suspended or debarred. Cause: For the Unified Government, this is typically included in the contracts, but was not included in the subrecipient contracts for this program and the Unified Government did not have another means of validating suspension and debarment. Recommendation: Policies and procedures should be modified to ensure that suspension and debarment checks are performed on vendors and subrecipients alike prior to making purchases with federal funds. When newly established programs include subrecipients, we also recommend the contracts include suspension and debarment language. View of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Procurement has begun the process of checking SAM.gov for debarment for potential suppliers. Also, departments have been informed of this required step for both suppliers and subrecipients. Downstream, need to evaluate if this language can be added to the contract templates.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement: Suspension and Debarment and Significant Deficiency In accordance with 2 CFR 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR Section 180.215. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Suspension and debarment checks were not completed for the subrecipients that received federal funds. Questioned Costs: None noted. Context: Only one subreceipient received pass-through funding from the Unified Government. The single subrecipient under both ALN 93.044 and 93.045, receiving approximately $180,000, was not evaluated for suspension and debarment. It was noted after subsequent check, that the subrecipient was not suspended or debarred. Identification of Prior Year Finding: 2022-007 Effect: Federal funds could be paid to entities that are suspended or debarred. Cause: For the Unified Government, this is typically included in the contracts, but was not included in the subrecipient contracts for this program and the Unified Government did not have another means of validating suspension and debarment. Recommendation: Policies and procedures should be modified to ensure that suspension and debarment checks are performed on vendors and subrecipients alike prior to making purchases with federal funds. When newly established programs include subrecipients, we also recommend the contracts include suspension and debarment language. View of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Procurement has begun the process of checking SAM.gov for debarment for potential suppliers. Also, departments have been informed of this required step for both suppliers and subrecipients. Downstream, need to evaluate if this language can be added to the contract templates.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement: Subrecipient Monitoring and Material Weakness Per 2 CFR 200.332, a pass-through entity is required to evaluate each subrecipient’s risk of noncompliance with federal statutes, regulations, and terms and conditions of the subaward as well as monitor the activities of the subrecipient which include reviewing financial and performance reports, obtaining and reviewing subrecipient single audit reports, etc. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: No risk assessment or ongoing formal monitoring of the subrecipient was performed. Questioned Costs: None noted. Context: There is only one subrecipient associated with this program. During 2023, the subrecipient received $180,658 ($31,619 - ALN 93.044, $149,039- ALN 93.045) from the Unified Government. The subrecipient for this program is a long-time subrecipient that is familiar with federal compliance requirements, but the risk assessment was not done in writing. Additionally, ongoing monitoring including reviewing for single audit filings were not completed. Identification of Prior Year Finding: 2022-008 Effect: Federal funds could be improperly utilized by a subrecipient which does not have an adequate understanding of the requirements or tools to support the program. Cause: The Unified Government has a long-time relationship with this subrecipient and did not formalize the risk assessment process. Further, formalized processes for monitoring subrecipients were not operating effectively. Recommendation: We recommend that the Unified Government develop procedures to perform a risk assessment on all potential subrecipients before entering into an agreement to provide federal funds to that entity and revisit annually thereafter. Additionally, formal policies and procedures should be put in place over the various levels of monitoring that may occur as a result of the risk assessment and should also include a trigger to ensure single audit reports of subrecipients are reviewed. View of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Aging department is now completing these assessments annually.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement: Subrecipient Monitoring and Material Weakness Per 2 CFR 200.332, a pass-through entity is required to evaluate each subrecipient’s risk of noncompliance with federal statutes, regulations, and terms and conditions of the subaward as well as monitor the activities of the subrecipient which include reviewing financial and performance reports, obtaining and reviewing subrecipient single audit reports, etc. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: No risk assessment or ongoing formal monitoring of the subrecipient was performed. Questioned Costs: None noted. Context: There is only one subrecipient associated with this program. During 2023, the subrecipient received $180,658 ($31,619 - ALN 93.044, $149,039- ALN 93.045) from the Unified Government. The subrecipient for this program is a long-time subrecipient that is familiar with federal compliance requirements, but the risk assessment was not done in writing. Additionally, ongoing monitoring including reviewing for single audit filings were not completed. Identification of Prior Year Finding: 2022-008 Effect: Federal funds could be improperly utilized by a subrecipient which does not have an adequate understanding of the requirements or tools to support the program. Cause: The Unified Government has a long-time relationship with this subrecipient and did not formalize the risk assessment process. Further, formalized processes for monitoring subrecipients were not operating effectively. Recommendation: We recommend that the Unified Government develop procedures to perform a risk assessment on all potential subrecipients before entering into an agreement to provide federal funds to that entity and revisit annually thereafter. Additionally, formal policies and procedures should be put in place over the various levels of monitoring that may occur as a result of the risk assessment and should also include a trigger to ensure single audit reports of subrecipients are reviewed. View of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Aging department is now completing these assessments annually.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement – Earmarking and Material Weakness As described in the Older American Acts (OAA) Field Manual, Section 8.1.6.A.5 of the Kansas Department for Aging and Disability Services, the Unified Government is required to perform earmarking to ensure that no more than 120% of the budgeted amount of each category is spent and reimbursed. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: While performing procedures over the Aging Cluster, the Unified Government did not comply with the earmarking requirements as set forth by the grant. Questioned Costs – $4,149 (Legal services expenses which exceeded budgeted amounts by more than 20% for ALN 93.044 - 2301KSOASS). $106,409 (Congregate meals expenses which exceeded budgeted amounts by more than 20% of ALN 93.045 - 2301KSOAHD). $450,762 (Meals and delivery expenses which exceeded budgeted amounts by more than 20% of ALN 93.045 - 2301KSOACT and 2301KSOAHD). Context: We reviewed the budget to actual comparison for the grant period ended September 30, 2023, which is associated with the awards year end. We noted expenses exceeded the budgeted threshold of 120% by $561,320. Identification of Prior Year Finding: 2022-009 Effect: Compliance with earmarking is not being met. Cause: The Unified Government's controls to follow the earmarking requirement did not operate effectively. Recommendation: We recommend that the Unified Government put in place processes/controls to monitor earmarking requirement for compliance. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Management will put controls and processes in place to ensure earmarking is being monitored for compliance.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement – Earmarking and Material Weakness As described in the Older American Acts (OAA) Field Manual, Section 8.1.6.A.5 of the Kansas Department for Aging and Disability Services, the Unified Government is required to perform earmarking to ensure that no more than 120% of the budgeted amount of each category is spent and reimbursed. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: While performing procedures over the Aging Cluster, the Unified Government did not comply with the earmarking requirements as set forth by the grant. Questioned Costs – $4,149 (Legal services expenses which exceeded budgeted amounts by more than 20% for ALN 93.044 - 2301KSOASS). $106,409 (Congregate meals expenses which exceeded budgeted amounts by more than 20% of ALN 93.045 - 2301KSOAHD). $450,762 (Meals and delivery expenses which exceeded budgeted amounts by more than 20% of ALN 93.045 - 2301KSOACT and 2301KSOAHD). Context: We reviewed the budget to actual comparison for the grant period ended September 30, 2023, which is associated with the awards year end. We noted expenses exceeded the budgeted threshold of 120% by $561,320. Identification of Prior Year Finding: 2022-009 Effect: Compliance with earmarking is not being met. Cause: The Unified Government's controls to follow the earmarking requirement did not operate effectively. Recommendation: We recommend that the Unified Government put in place processes/controls to monitor earmarking requirement for compliance. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Management will put controls and processes in place to ensure earmarking is being monitored for compliance.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement – Allowable Costs/Cost Principles and Material Weakness Federal regulations state that “charges to federal awards for salaries and wages, must be based on records that accurately reflect the work performed.” The regulations also state that “the records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and property allocated” and “budget estimates alone do not qualify as support for charges to federal awards” (2 CFR 200.430(i)). Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our test work over the ALN 93.045 grant, we noted the Unified Government did not have time and activity records with sufficient detail per federal regulations document to support its compensation and fringe benefit expenses. Questioned Costs: Total questioned costs of $200,949 were identified as a result of lack of proper documentation to support the charge and allocation to the grant. Context: We selected a sample of 60 charges totaling $16,075 to the Aging Cluster grants related to salaries and benefits expenditures. Within our sample, none of the 60 selections had proper documentation to support allocation to the grant. Per discussions with management and further review, the amounts charged to the grant were based on the approved budget for the position and the internal allocation performed each payroll period. Salaries and benefits charged to the entire cluster in the audit period totaled $200,949 and represented 14% of the total grant expenditures for the period. The sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: 2022-019 Effect: Based on testing completed, the Unified Government did not have sufficient procedures to allocate salaries and fringe benefits activity related to Aging Cluster throughout fiscal year 2023. Cause: Management indicated that this was attributed to a misunderstanding of the requirements and the inability to rely on budgeted estimates alone. Recommendation: We recommend that management utilize a time and activity method which meets the requirements of federal regulations. We also recommend employees and their supervisors are provided training on the requirements. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Management agrees with the stated finding and has implemented a corrective action plan.

U.S. Department of Treasury COVID 19 - Coronavirus State and Local Fiscal Recovery Funds - 21.027 Criteria or Specific Requirement – Significant Deficiency Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Guidance on Recipient Compliance and Reporting Responsibilities, metropolitan cities and counties with a population below 250,000 residents that are allocated more than $10,000,000 in SLFRF are required to submit quarterly project and expenditure reports. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our test work over the Coronavirus State and Local Fiscal Recovery grant, we noted the Unified Government did not timely file one of the required reports. Questioned Costs – None noted. Context: One out of the two quarterly reports selected for testing was submitted on May 31, 2023 rather than the Department of Treasury's due date of April 30, 2023. The sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: 2022-012 Effect: Required reports are not being submitted timely. Cause: The Unified Government's controls to ensure reports are filed timely were not operating effectively. Recommendation: We recommend that the Unified Government implement a process that includes tracking the timely submission of reports. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year. In concert with our ARPA consultant, we were able to combine the City & County on the portal and report timely quarterly since this initial issue in the reporting portal.

U.S. Department of Treasury COVID 19 - Coronavirus State and Local Fiscal Recovery Funds - 21.027 Criteria or Specific Requirement: Procurement and Significant Deficiency In accordance with 2 CFR 200.318, recipients and subrecipients must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including acquisition of property and services. These documented procurement procedures must be consistent with State, local and tribal laws and regulations and the standards identified in 2 CFR 200.317 through 2 CFR 200.327. Condition: During our test work over the Coronavirus State and Local Fiscal Recovery grant, we noted the Unified Government did not perform procurement procedures on one of its vendor contracts. Questioned Costs - None noted. Context: For 21.027, there were 29 vendors receiving a total of $1,789,214 subject to procurement requirements. Of those 29, a sample of eight vendors receiving a total of $470,106 were selected for testing. One of the eight vendors selected for testing did not undergo the Unified Government's formal procurement procedures. However, the vendor did undergo proper suspension and debarment checks and no issues were identified during this check. The sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: N/A Effect: Federal funds could be paid to entities outside of the Unified Government's procurement policy. Cause: The vendor identified was granted a non-competitive procurement under national emergency conditions due to the effects of COVID-19. However, the vendor was utilized again after the national emergency period and the Unified Government's procurement policy should have been followed at this time, but was not. Recommendation: We recommend that the Unified Government communicate to all departments that purchases using federal funds follow the procurement policy procedures prior to purchase and the procurement department provide training on the requirements to properly document that the procedures are completed. View of Responsible Official and Planned Corrective Actions: Departments have been informed of the procurement requirements and the procurement policy will be adhered to on a go forward basis.

U.S. Department of Homeland Security Staffing for Adequate Fire and Emergency Response (SAFER) - 97.083 Criteria or Specific Requirement – Material Weakness Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: It is the Unified Government's policy that no funding received through the Staffing for Adequate Fire and Emergency Response (SAFER) grant is to be utilized for overtime pay even when it is allowed under the grant. During testing of allowable costs, we identified instances in which funding was used for overtime pay. Questioned Costs: None noted. Context: We selected a sample of 40 charges to the SAFER grant of which, all were salaries and benefits expenditures. Within our sample, we noted three of the selections were overtime and were charged and allocated to the grant. These were determined to be allowable under the grant as it was for overtime that the fire department routinely pays as a part of the firefighter’s regularly scheduled and contracted shift hours to comply with the Fair Labor Standards Act (FLSA). This sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: 2022-013 Effect: The Unified Government's control surrounding overtime pay was not operating effectively and overtime was applied against the grant despite their internal policies and controls. Cause: The Unified Government's controls to not charge overtime did not operate effectively. Recommendation: We recommend that the Unified Government review its control structure surrounding the SAFER award document and ensure they are designed around compliance requirements and that they are operating effectively. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year. Management will work with stakeholders so that only the allowed costs are used as the basis of the reimbursement packet. We have also created fencing around allowed costs and period of performance in our new ERP system.

U.S. Department of Housing and Urban Development Community Block Development Grants/Entitlement Cluster - 14.218 Criteria or Specific Requirement – Special Tests and Provisions and Significant Deficiency Projects must have an environmental review unless they meet criteria in the regulations that would exempt or exclude them from RROF and environment certification requirements (24 CFR sections 58.1, 58.22, 58.34, 58.35 and 570.604). If it is determined that an environment review is not required, the entity should document the determination consistent with the criteria contained in 24 CFR sections 58.34 and 58.35(b). Condition: During our test work over the Community Block Development Grants/Entitlement Cluster, we noted no environment reviews were performed on projects. The Unified Government did maintain documentation surrounding the determination that no environmental reviews were required for projects. Questioned Costs – None noted. Context: None of the projects funded by the Community Block Development Grants/Entitlement Cluster had documentation regarding consideration of environmental reviews. Identification of Prior Year Finding: N/A Effect: There was not sufficient documentation to substantiate management's decision to forgo environmental reviews on projects. Cause: The Unified Government's controls to ensure documentation of environmental review considerations were not operating effectively. Recommendation: We recommend that the Unified Government implement a process to document environmental review considerations for each project. Views of Responsible Official and Planned Corrective Actions: Departments have been informed of the requirement and management will work with staff to ensure and environmental assessment is conducted for each project with documentation maintained in the files.

U.S. Department of Housing and Urban Development Community Block Development Grants/Entitlement Cluster - 14.218 Criteria or Specific Requirement – Reporting and Significant Deficiency Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: During our test work over the Community Block Development Grants/Entitlement Cluster, we noted the Unified Government did not report to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Questioned Costs – None noted. Context: Two of the Unified Government's first-tier subrecipients of the Community Block Development Grants/Entitlement Cluster exceeded $30,000 in funding. Neither of these subawards were submitted to the FSRS. Identification of Prior Year Finding: N/A Effect: The Unified Government did not submit required reports to the FSRS. Cause: The Unified Government's controls to ensure required report submissions occur were not operating effectively. Recommendation: We recommend that the Unified Government implement a process to ensure required report submissions to the FSRS occur. Views of Responsible Official and Planned Corrective Actions: Departments have been informed of the requirement and management will work with staff to ensure and reports are submitted to FSRS as required.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement: Suspension and Debarment and Significant Deficiency In accordance with 2 CFR 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR Section 180.215. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Suspension and debarment checks were not completed for the subrecipients that received federal funds. Questioned Costs: None noted. Context: Only one subreceipient received pass-through funding from the Unified Government. The single subrecipient under both ALN 93.044 and 93.045, receiving approximately $180,000, was not evaluated for suspension and debarment. It was noted after subsequent check, that the subrecipient was not suspended or debarred. Identification of Prior Year Finding: 2022-007 Effect: Federal funds could be paid to entities that are suspended or debarred. Cause: For the Unified Government, this is typically included in the contracts, but was not included in the subrecipient contracts for this program and the Unified Government did not have another means of validating suspension and debarment. Recommendation: Policies and procedures should be modified to ensure that suspension and debarment checks are performed on vendors and subrecipients alike prior to making purchases with federal funds. When newly established programs include subrecipients, we also recommend the contracts include suspension and debarment language. View of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Procurement has begun the process of checking SAM.gov for debarment for potential suppliers. Also, departments have been informed of this required step for both suppliers and subrecipients. Downstream, need to evaluate if this language can be added to the contract templates.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement: Suspension and Debarment and Significant Deficiency In accordance with 2 CFR 200.214, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR Section 180.215. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Suspension and debarment checks were not completed for the subrecipients that received federal funds. Questioned Costs: None noted. Context: Only one subreceipient received pass-through funding from the Unified Government. The single subrecipient under both ALN 93.044 and 93.045, receiving approximately $180,000, was not evaluated for suspension and debarment. It was noted after subsequent check, that the subrecipient was not suspended or debarred. Identification of Prior Year Finding: 2022-007 Effect: Federal funds could be paid to entities that are suspended or debarred. Cause: For the Unified Government, this is typically included in the contracts, but was not included in the subrecipient contracts for this program and the Unified Government did not have another means of validating suspension and debarment. Recommendation: Policies and procedures should be modified to ensure that suspension and debarment checks are performed on vendors and subrecipients alike prior to making purchases with federal funds. When newly established programs include subrecipients, we also recommend the contracts include suspension and debarment language. View of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Procurement has begun the process of checking SAM.gov for debarment for potential suppliers. Also, departments have been informed of this required step for both suppliers and subrecipients. Downstream, need to evaluate if this language can be added to the contract templates.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement: Subrecipient Monitoring and Material Weakness Per 2 CFR 200.332, a pass-through entity is required to evaluate each subrecipient’s risk of noncompliance with federal statutes, regulations, and terms and conditions of the subaward as well as monitor the activities of the subrecipient which include reviewing financial and performance reports, obtaining and reviewing subrecipient single audit reports, etc. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: No risk assessment or ongoing formal monitoring of the subrecipient was performed. Questioned Costs: None noted. Context: There is only one subrecipient associated with this program. During 2023, the subrecipient received $180,658 ($31,619 - ALN 93.044, $149,039- ALN 93.045) from the Unified Government. The subrecipient for this program is a long-time subrecipient that is familiar with federal compliance requirements, but the risk assessment was not done in writing. Additionally, ongoing monitoring including reviewing for single audit filings were not completed. Identification of Prior Year Finding: 2022-008 Effect: Federal funds could be improperly utilized by a subrecipient which does not have an adequate understanding of the requirements or tools to support the program. Cause: The Unified Government has a long-time relationship with this subrecipient and did not formalize the risk assessment process. Further, formalized processes for monitoring subrecipients were not operating effectively. Recommendation: We recommend that the Unified Government develop procedures to perform a risk assessment on all potential subrecipients before entering into an agreement to provide federal funds to that entity and revisit annually thereafter. Additionally, formal policies and procedures should be put in place over the various levels of monitoring that may occur as a result of the risk assessment and should also include a trigger to ensure single audit reports of subrecipients are reviewed. View of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Aging department is now completing these assessments annually.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement: Subrecipient Monitoring and Material Weakness Per 2 CFR 200.332, a pass-through entity is required to evaluate each subrecipient’s risk of noncompliance with federal statutes, regulations, and terms and conditions of the subaward as well as monitor the activities of the subrecipient which include reviewing financial and performance reports, obtaining and reviewing subrecipient single audit reports, etc. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: No risk assessment or ongoing formal monitoring of the subrecipient was performed. Questioned Costs: None noted. Context: There is only one subrecipient associated with this program. During 2023, the subrecipient received $180,658 ($31,619 - ALN 93.044, $149,039- ALN 93.045) from the Unified Government. The subrecipient for this program is a long-time subrecipient that is familiar with federal compliance requirements, but the risk assessment was not done in writing. Additionally, ongoing monitoring including reviewing for single audit filings were not completed. Identification of Prior Year Finding: 2022-008 Effect: Federal funds could be improperly utilized by a subrecipient which does not have an adequate understanding of the requirements or tools to support the program. Cause: The Unified Government has a long-time relationship with this subrecipient and did not formalize the risk assessment process. Further, formalized processes for monitoring subrecipients were not operating effectively. Recommendation: We recommend that the Unified Government develop procedures to perform a risk assessment on all potential subrecipients before entering into an agreement to provide federal funds to that entity and revisit annually thereafter. Additionally, formal policies and procedures should be put in place over the various levels of monitoring that may occur as a result of the risk assessment and should also include a trigger to ensure single audit reports of subrecipients are reviewed. View of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Aging department is now completing these assessments annually.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement – Earmarking and Material Weakness As described in the Older American Acts (OAA) Field Manual, Section 8.1.6.A.5 of the Kansas Department for Aging and Disability Services, the Unified Government is required to perform earmarking to ensure that no more than 120% of the budgeted amount of each category is spent and reimbursed. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: While performing procedures over the Aging Cluster, the Unified Government did not comply with the earmarking requirements as set forth by the grant. Questioned Costs – $4,149 (Legal services expenses which exceeded budgeted amounts by more than 20% for ALN 93.044 - 2301KSOASS). $106,409 (Congregate meals expenses which exceeded budgeted amounts by more than 20% of ALN 93.045 - 2301KSOAHD). $450,762 (Meals and delivery expenses which exceeded budgeted amounts by more than 20% of ALN 93.045 - 2301KSOACT and 2301KSOAHD). Context: We reviewed the budget to actual comparison for the grant period ended September 30, 2023, which is associated with the awards year end. We noted expenses exceeded the budgeted threshold of 120% by $561,320. Identification of Prior Year Finding: 2022-009 Effect: Compliance with earmarking is not being met. Cause: The Unified Government's controls to follow the earmarking requirement did not operate effectively. Recommendation: We recommend that the Unified Government put in place processes/controls to monitor earmarking requirement for compliance. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Management will put controls and processes in place to ensure earmarking is being monitored for compliance.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.044 - Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers - 2301KSOASS ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement – Earmarking and Material Weakness As described in the Older American Acts (OAA) Field Manual, Section 8.1.6.A.5 of the Kansas Department for Aging and Disability Services, the Unified Government is required to perform earmarking to ensure that no more than 120% of the budgeted amount of each category is spent and reimbursed. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: While performing procedures over the Aging Cluster, the Unified Government did not comply with the earmarking requirements as set forth by the grant. Questioned Costs – $4,149 (Legal services expenses which exceeded budgeted amounts by more than 20% for ALN 93.044 - 2301KSOASS). $106,409 (Congregate meals expenses which exceeded budgeted amounts by more than 20% of ALN 93.045 - 2301KSOAHD). $450,762 (Meals and delivery expenses which exceeded budgeted amounts by more than 20% of ALN 93.045 - 2301KSOACT and 2301KSOAHD). Context: We reviewed the budget to actual comparison for the grant period ended September 30, 2023, which is associated with the awards year end. We noted expenses exceeded the budgeted threshold of 120% by $561,320. Identification of Prior Year Finding: 2022-009 Effect: Compliance with earmarking is not being met. Cause: The Unified Government's controls to follow the earmarking requirement did not operate effectively. Recommendation: We recommend that the Unified Government put in place processes/controls to monitor earmarking requirement for compliance. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Management will put controls and processes in place to ensure earmarking is being monitored for compliance.

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster - ALN 93.045 - Special Programs for the Aging _Title III, Part C_Nutrition Services - 2301KSOAHD Criteria or Specific Requirement – Allowable Costs/Cost Principles and Material Weakness Federal regulations state that “charges to federal awards for salaries and wages, must be based on records that accurately reflect the work performed.” The regulations also state that “the records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and property allocated” and “budget estimates alone do not qualify as support for charges to federal awards” (2 CFR 200.430(i)). Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our test work over the ALN 93.045 grant, we noted the Unified Government did not have time and activity records with sufficient detail per federal regulations document to support its compensation and fringe benefit expenses. Questioned Costs: Total questioned costs of $200,949 were identified as a result of lack of proper documentation to support the charge and allocation to the grant. Context: We selected a sample of 60 charges totaling $16,075 to the Aging Cluster grants related to salaries and benefits expenditures. Within our sample, none of the 60 selections had proper documentation to support allocation to the grant. Per discussions with management and further review, the amounts charged to the grant were based on the approved budget for the position and the internal allocation performed each payroll period. Salaries and benefits charged to the entire cluster in the audit period totaled $200,949 and represented 14% of the total grant expenditures for the period. The sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: 2022-019 Effect: Based on testing completed, the Unified Government did not have sufficient procedures to allocate salaries and fringe benefits activity related to Aging Cluster throughout fiscal year 2023. Cause: Management indicated that this was attributed to a misunderstanding of the requirements and the inability to rely on budgeted estimates alone. Recommendation: We recommend that management utilize a time and activity method which meets the requirements of federal regulations. We also recommend employees and their supervisors are provided training on the requirements. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Management agrees with the stated finding and has implemented a corrective action plan.

U.S. Department of Treasury COVID 19 - Coronavirus State and Local Fiscal Recovery Funds - 21.027 Criteria or Specific Requirement – Significant Deficiency Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Guidance on Recipient Compliance and Reporting Responsibilities, metropolitan cities and counties with a population below 250,000 residents that are allocated more than $10,000,000 in SLFRF are required to submit quarterly project and expenditure reports. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our test work over the Coronavirus State and Local Fiscal Recovery grant, we noted the Unified Government did not timely file one of the required reports. Questioned Costs – None noted. Context: One out of the two quarterly reports selected for testing was submitted on May 31, 2023 rather than the Department of Treasury's due date of April 30, 2023. The sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: 2022-012 Effect: Required reports are not being submitted timely. Cause: The Unified Government's controls to ensure reports are filed timely were not operating effectively. Recommendation: We recommend that the Unified Government implement a process that includes tracking the timely submission of reports. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year. In concert with our ARPA consultant, we were able to combine the City & County on the portal and report timely quarterly since this initial issue in the reporting portal.

U.S. Department of Treasury COVID 19 - Coronavirus State and Local Fiscal Recovery Funds - 21.027 Criteria or Specific Requirement: Procurement and Significant Deficiency In accordance with 2 CFR 200.318, recipients and subrecipients must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including acquisition of property and services. These documented procurement procedures must be consistent with State, local and tribal laws and regulations and the standards identified in 2 CFR 200.317 through 2 CFR 200.327. Condition: During our test work over the Coronavirus State and Local Fiscal Recovery grant, we noted the Unified Government did not perform procurement procedures on one of its vendor contracts. Questioned Costs - None noted. Context: For 21.027, there were 29 vendors receiving a total of $1,789,214 subject to procurement requirements. Of those 29, a sample of eight vendors receiving a total of $470,106 were selected for testing. One of the eight vendors selected for testing did not undergo the Unified Government's formal procurement procedures. However, the vendor did undergo proper suspension and debarment checks and no issues were identified during this check. The sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: N/A Effect: Federal funds could be paid to entities outside of the Unified Government's procurement policy. Cause: The vendor identified was granted a non-competitive procurement under national emergency conditions due to the effects of COVID-19. However, the vendor was utilized again after the national emergency period and the Unified Government's procurement policy should have been followed at this time, but was not. Recommendation: We recommend that the Unified Government communicate to all departments that purchases using federal funds follow the procurement policy procedures prior to purchase and the procurement department provide training on the requirements to properly document that the procedures are completed. View of Responsible Official and Planned Corrective Actions: Departments have been informed of the procurement requirements and the procurement policy will be adhered to on a go forward basis.

U.S. Department of Homeland Security Staffing for Adequate Fire and Emergency Response (SAFER) - 97.083 Criteria or Specific Requirement – Material Weakness Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: It is the Unified Government's policy that no funding received through the Staffing for Adequate Fire and Emergency Response (SAFER) grant is to be utilized for overtime pay even when it is allowed under the grant. During testing of allowable costs, we identified instances in which funding was used for overtime pay. Questioned Costs: None noted. Context: We selected a sample of 40 charges to the SAFER grant of which, all were salaries and benefits expenditures. Within our sample, we noted three of the selections were overtime and were charged and allocated to the grant. These were determined to be allowable under the grant as it was for overtime that the fire department routinely pays as a part of the firefighter’s regularly scheduled and contracted shift hours to comply with the Fair Labor Standards Act (FLSA). This sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: 2022-013 Effect: The Unified Government's control surrounding overtime pay was not operating effectively and overtime was applied against the grant despite their internal policies and controls. Cause: The Unified Government's controls to not charge overtime did not operate effectively. Recommendation: We recommend that the Unified Government review its control structure surrounding the SAFER award document and ensure they are designed around compliance requirements and that they are operating effectively. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year. Management will work with stakeholders so that only the allowed costs are used as the basis of the reimbursement packet. We have also created fencing around allowed costs and period of performance in our new ERP system.

U.S. Department of Housing and Urban Development Community Block Development Grants/Entitlement Cluster - 14.218 Criteria or Specific Requirement – Special Tests and Provisions and Significant Deficiency Projects must have an environmental review unless they meet criteria in the regulations that would exempt or exclude them from RROF and environment certification requirements (24 CFR sections 58.1, 58.22, 58.34, 58.35 and 570.604). If it is determined that an environment review is not required, the entity should document the determination consistent with the criteria contained in 24 CFR sections 58.34 and 58.35(b). Condition: During our test work over the Community Block Development Grants/Entitlement Cluster, we noted no environment reviews were performed on projects. The Unified Government did maintain documentation surrounding the determination that no environmental reviews were required for projects. Questioned Costs – None noted. Context: None of the projects funded by the Community Block Development Grants/Entitlement Cluster had documentation regarding consideration of environmental reviews. Identification of Prior Year Finding: N/A Effect: There was not sufficient documentation to substantiate management's decision to forgo environmental reviews on projects. Cause: The Unified Government's controls to ensure documentation of environmental review considerations were not operating effectively. Recommendation: We recommend that the Unified Government implement a process to document environmental review considerations for each project. Views of Responsible Official and Planned Corrective Actions: Departments have been informed of the requirement and management will work with staff to ensure and environmental assessment is conducted for each project with documentation maintained in the files.

U.S. Department of Housing and Urban Development Community Block Development Grants/Entitlement Cluster - 14.218 Criteria or Specific Requirement – Reporting and Significant Deficiency Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: During our test work over the Community Block Development Grants/Entitlement Cluster, we noted the Unified Government did not report to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Questioned Costs – None noted. Context: Two of the Unified Government's first-tier subrecipients of the Community Block Development Grants/Entitlement Cluster exceeded $30,000 in funding. Neither of these subawards were submitted to the FSRS. Identification of Prior Year Finding: N/A Effect: The Unified Government did not submit required reports to the FSRS. Cause: The Unified Government's controls to ensure required report submissions occur were not operating effectively. Recommendation: We recommend that the Unified Government implement a process to ensure required report submissions to the FSRS occur. Views of Responsible Official and Planned Corrective Actions: Departments have been informed of the requirement and management will work with staff to ensure and reports are submitted to FSRS as required.