FAC Explorer

Audit 338418

FY End
2023-12-31
Total Expended
$4.69M
Findings
2
Programs
33
Organization: McLeod County (MN)
Year: 2023 Accepted: 2025-01-16
Auditor: Office of the State Auditor

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
519465 2023-005 Significant Deficiency Yes I
1095907 2023-005 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $1.53M Yes 1
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $295,212 - 0
93.667 Social Services Block Grant $213,864 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $175,380 - 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $134,375 - 0
93.658 Foster Care Title IV-E $122,202 - 0
93.563 Child Support Services $116,025 Yes 0
21.032 Covid-19 - Local Assistance and Tribal Consistency Fund $100,000 - 0
93.994 Maternal and Child Health Services Block Grant to the States $39,153 - 0
16.835 Body Worn Camera Policy and Implementation $36,058 - 0
93.558 Temporary Assistance for Needy Families $34,617 - 0
97.042 Emergency Management Performance Grants $29,208 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $26,219 - 0
93.778 Medical Assistance Program $18,336 - 0
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $10,492 - 0
20.600 State and Community Highway Safety $10,347 - 0
93.575 Child Care and Development Block Grant $9,231 - 0
93.590 Community-Based Child Abuse Prevention Grants $9,066 - 0
16.607 Bulletproof Vest Partnership Program $8,856 - 0
16.606 State Criminal Alien Assistance Program $7,664 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $6,957 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $6,591 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $5,889 - 0
93.747 Covid-19 - Elder Abuse Prevention Interventions Program $4,464 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $4,387 - 0
20.616 National Priority Safety Programs $3,200 - 0
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $2,113 - 0
93.251 Universal Newborn Hearing and Screening $2,100 - 0
97.012 Boating Safety Financial Assistance $1,628 - 0
84.181 Special Education-Grants for Infants and Families $1,392 - 0
93.767 Children's Health Insurance Program $1,232 - 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $979 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $869 - 0

Contacts

Name Title Type
LDADUDX2KWM5 Sheila Murphy Auditee
3208641320 Julie Blaha Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation to Schedule of Intergovernmental Revenue Accounting Policies: Summary of Significant Accounting Policies Reporting Entity The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by McLeod County. The County’s reporting entity is defined in Note 1 to the financial statements. The schedule does not include $648,554 in federal awards expended by the McLeod County Housing and Redevelopment Authority component unit. The component unit is legally separate from the primary government, and, because it expended less than $750,000 of federal awards for the year ended June 30, 2023, it was not subject to the audit 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). Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of McLeod County under programs of the federal government for the year ended December 31, 2023. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule of Expenditures of Federal Awards presents only a selected portion of the operations of McLeod County, it is not intended to and does not present the financial position, changes in net position, or cash flows of McLeod County. Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: De Minimis Cost Rate McLeod County has elected not to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. See Notes to the SEFA for Charts/Table
Title: Disaster Grants – Public Assistance (Presidentially Declared Disasters) Accounting Policies: Summary of Significant Accounting Policies Reporting Entity The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by McLeod County. The County’s reporting entity is defined in Note 1 to the financial statements. The schedule does not include $648,554 in federal awards expended by the McLeod County Housing and Redevelopment Authority component unit. The component unit is legally separate from the primary government, and, because it expended less than $750,000 of federal awards for the year ended June 30, 2023, it was not subject to the audit 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). Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of McLeod County under programs of the federal government for the year ended December 31, 2023. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule of Expenditures of Federal Awards presents only a selected portion of the operations of McLeod County, it is not intended to and does not present the financial position, changes in net position, or cash flows of McLeod County. Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: De Minimis Cost Rate McLeod County has elected not to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. During the current year, McLeod County has identified $272,284 of 2022 expenditures to be applied to the Disaster Grants – Public Assistance (Presidentially Declared Disasters), Assistance Listing No. 97.036. These expenditures were not identified in the 2022 Schedule of Expenditures of Federal Awards in error. Because they are not current year expenditures, they are not included in the 2023 Schedule of Expenditures of Federal Awards.

Finding Details

Finding 2023-005
2023-005 Procurement and Suspension and Debarment Prior Year Finding Number: 2022-006 Year of Finding Origination: 2020 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLFRP3474; 2021 Pass-Through Agency: N/A – Federal Direct Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Federal requirements prohibit non-federal entities from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Title 2 U.S. Code of Federal Regulations § 180.300 describes a required verification process. Prior to entering into the transaction, one of the following must be performed: (1) checking SAM.gov exclusions, (2) collecting a certification, or (3) adding a clause or condition to the covered transaction. Condition: The County did not verify that vendors were not debarred, suspended, or otherwise excluded from participation in federal assistance programs or activities before entering into the covered transactions. Questioned Costs: None. Context: The County has revised its procurement policies to include components of federal procurement requirements related to suspension and debarment; these are pending review and approval by the Board of County Commissioners. Effect: Failure to verify vendors are not suspended, debarred, or otherwise excluded may result in the County entering into a transaction with a vendor that is not authorized to provide goods and services. Cause: The County’s written procurement policy does not include requirements specific to suspension and debarment. Recommendation: We recommend the County include the specific components of federal procurement requirements in its written procurement policies and procedures. View of Responsible Official: Acknowledge
Finding 2023-005
2023-005 Procurement and Suspension and Debarment Prior Year Finding Number: 2022-006 Year of Finding Origination: 2020 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLFRP3474; 2021 Pass-Through Agency: N/A – Federal Direct Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Federal requirements prohibit non-federal entities from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Title 2 U.S. Code of Federal Regulations § 180.300 describes a required verification process. Prior to entering into the transaction, one of the following must be performed: (1) checking SAM.gov exclusions, (2) collecting a certification, or (3) adding a clause or condition to the covered transaction. Condition: The County did not verify that vendors were not debarred, suspended, or otherwise excluded from participation in federal assistance programs or activities before entering into the covered transactions. Questioned Costs: None. Context: The County has revised its procurement policies to include components of federal procurement requirements related to suspension and debarment; these are pending review and approval by the Board of County Commissioners. Effect: Failure to verify vendors are not suspended, debarred, or otherwise excluded may result in the County entering into a transaction with a vendor that is not authorized to provide goods and services. Cause: The County’s written procurement policy does not include requirements specific to suspension and debarment. Recommendation: We recommend the County include the specific components of federal procurement requirements in its written procurement policies and procedures. View of Responsible Official: Acknowledge