FAC Explorer

Audit 345806

FY End
2021-12-31
Total Expended
$773,943
Findings
16
Programs
16
Organization: Kittson County (MN)
Year: 2021 Accepted: 2025-03-12
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
526769 2021-005 Significant Deficiency Yes ABH
526770 2021-006 Material Weakness - I
526771 2021-007 Significant Deficiency - L
526772 2021-009 Significant Deficiency - L
526773 2021-009 Significant Deficiency - L
526774 2021-008 Significant Deficiency Yes ABH
526775 2021-009 Significant Deficiency - L
526776 2021-008 Significant Deficiency Yes ABH
1103211 2021-005 Significant Deficiency Yes ABH
1103212 2021-006 Material Weakness - I
1103213 2021-007 Significant Deficiency - L
1103214 2021-009 Significant Deficiency - L
1103215 2021-009 Significant Deficiency - L
1103216 2021-008 Significant Deficiency Yes ABH
1103217 2021-009 Significant Deficiency - L
1103218 2021-008 Significant Deficiency Yes ABH

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $109,597 Yes 4
97.067 Homeland Security Grant Program $89,775 Yes 2
93.667 Social Services Block Grant $48,182 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $45,305 - 0
93.558 Temporary Assistance for Needy Families $38,879 - 0
93.658 Foster Care Title IV-E $31,604 - 0
93.563 Child Support Services $16,351 - 0
97.042 Emergency Management Performance Grants $14,964 - 0
21.019 Coronavirus Relief Fund $4,428 - 0
93.590 Community-Based Child Abuse Prevention Grants $2,294 - 0
93.778 Medical Assistance Program $1,558 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $930 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $384 - 0
93.767 Children's Health Insurance Program $218 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $209 - 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $95 - 0

Contacts

Name Title Type
PAZ6Y457VL78 Aimee Sugden Auditee
2188532805 Tracee Bruggeman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are 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 includes the federal award activity of Kittson County, Minnesota under programs of the federal government for the year ended December 31, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Kittson County, Minnesota, it is not intended to and does not present the financial position, changes in net position or cash flows of Kittson County, Minnesota.
Title: PASS-THROUGH ENTITIES Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are 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. Pass-through entities listed above without a pass-through number use the same CFDA numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are 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 2021, the County did not pass any federal money to subrecipients.

Finding Details

Finding 2021-005
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition The County was unable to provide evidence that certain grant expenditures had department head approval. Questioned Costs None Context Six disbursements were selected for testing. Two disbursements did not have documentation of required department head approval. Cause The County does not have sufficient procedures in place to ensure all expenditures have proper approval. Effect There is an increased risk of unallowable costs being charged to grants. Repeat Finding Yes. Prior audit finding 2020-004 Recommendation The County should review their policies and procedures for grant expenditures. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
Finding 2021-006
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Procurement, Suspension, and Debarment Criteria 2 CFR sections 200.320(a) (1) and (2) states “If small purchase [$10,000] procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Also, vendors for whom the county enters into a covered transaction ($25,000 or higher) with needs to be ensured that they are not suspended or debarred from federal funds per 2 CFR section 180.220. Furthermore, an entity should have a procurement policy that follows Uniform Guidance. Condition Two transactions were selected for testing. One transaction did not have quotes obtained. For both transactions, we noted the County did not review for suspension and debarment. We also noted the County’s procurement policy did not follow Uniform Guidance. Questioned Costs None Context In a population of 3, 2 transactions were tested and one of these transactions was not done through the proper procurement process. Also, our suspension and debarment population was two and we noted during testing of each transaction that the county did not ensure the vendor was not suspended or debarred from federal funds before entering into the covered transaction. Finally, we noted during review of the county’s procurement policy, it did not follow Uniform Guidance. Cause The County does not have sufficient procedures in place to ensure all expenditures comply with Uniform Guidance. Effect The County is not in compliance with Uniform Guidance. Repeat Finding No Recommendation The county should follow their procurement policy for procurement and should updated their procurement policy for suspension and debarment. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
Finding 2021-007
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Reporting Criteria A system of internal controls requires all reports to be review before being submitted. Also, federal requirements require reports be submitted accurately. Condition Two grant reports were required to be submitted during the period under audit. We noted both reports were not reviewed before submitting and one report did not agree with supporting documentation. Questioned Costs None Context The County was unable to provide evidence that grant reports were reviewed prior to submission. Cause The County does not have sufficient procedures in place to ensure all grant reporting is reviewed. Effect There is an increased risk of incorrect reporting. Repeat Finding No Recommendation The County should review their policies and procedures for grant repoting. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
Finding 2021-009
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Homeland Security Grant Program (CFDA 97.067) Reporting Criteria The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition Kittson County did not submit the data collection form to the Federal Audit Clearinghouse within the required time frame. Questioned Costs None Context The County is in violation of the reporting requirements when their audit was not completed withing the required timeframe. Cause The County’s general ledger accounts were not reconciled and the County was not ready for audit. Effect The County was not in compliance with federal reporting requirements. Repeat Finding No Recommendation The annual County audit should be completed within the timeframe allowed by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions The County Administrator will monitor the progress of the annual audit in the future so that the annual audit will be completed on a timely basis as described in our corrective action plan.
Finding 2021-009
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Homeland Security Grant Program (CFDA 97.067) Reporting Criteria The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition Kittson County did not submit the data collection form to the Federal Audit Clearinghouse within the required time frame. Questioned Costs None Context The County is in violation of the reporting requirements when their audit was not completed withing the required timeframe. Cause The County’s general ledger accounts were not reconciled and the County was not ready for audit. Effect The County was not in compliance with federal reporting requirements. Repeat Finding No Recommendation The annual County audit should be completed within the timeframe allowed by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions The County Administrator will monitor the progress of the annual audit in the future so that the annual audit will be completed on a timely basis as described in our corrective action plan.
Finding 2021-008
Federal Program Homeland Security Gran Program (CFDA 97.067) Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition Forty disbursements were selected for testing. One disbursement did not have documentation of required department head approval. Questioned Costs None Context The County was unable to provide evidence that certain grant expenditures had department head approval. Cause The County does not have sufficient procedures in place to ensure all expenditures have proper approval. Effect There is an increased risk of unallowable costs being charged to grants. Repeat Finding Yes. Prior audit finding 2020-004 Recommendation The County should review their policies and procedures for grant expenditures. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
Finding 2021-009
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Homeland Security Grant Program (CFDA 97.067) Reporting Criteria The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition Kittson County did not submit the data collection form to the Federal Audit Clearinghouse within the required time frame. Questioned Costs None Context The County is in violation of the reporting requirements when their audit was not completed withing the required timeframe. Cause The County’s general ledger accounts were not reconciled and the County was not ready for audit. Effect The County was not in compliance with federal reporting requirements. Repeat Finding No Recommendation The annual County audit should be completed within the timeframe allowed by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions The County Administrator will monitor the progress of the annual audit in the future so that the annual audit will be completed on a timely basis as described in our corrective action plan.
Finding 2021-008
Federal Program Homeland Security Gran Program (CFDA 97.067) Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition Forty disbursements were selected for testing. One disbursement did not have documentation of required department head approval. Questioned Costs None Context The County was unable to provide evidence that certain grant expenditures had department head approval. Cause The County does not have sufficient procedures in place to ensure all expenditures have proper approval. Effect There is an increased risk of unallowable costs being charged to grants. Repeat Finding Yes. Prior audit finding 2020-004 Recommendation The County should review their policies and procedures for grant expenditures. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
Finding 2021-005
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition The County was unable to provide evidence that certain grant expenditures had department head approval. Questioned Costs None Context Six disbursements were selected for testing. Two disbursements did not have documentation of required department head approval. Cause The County does not have sufficient procedures in place to ensure all expenditures have proper approval. Effect There is an increased risk of unallowable costs being charged to grants. Repeat Finding Yes. Prior audit finding 2020-004 Recommendation The County should review their policies and procedures for grant expenditures. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
Finding 2021-006
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Procurement, Suspension, and Debarment Criteria 2 CFR sections 200.320(a) (1) and (2) states “If small purchase [$10,000] procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Also, vendors for whom the county enters into a covered transaction ($25,000 or higher) with needs to be ensured that they are not suspended or debarred from federal funds per 2 CFR section 180.220. Furthermore, an entity should have a procurement policy that follows Uniform Guidance. Condition Two transactions were selected for testing. One transaction did not have quotes obtained. For both transactions, we noted the County did not review for suspension and debarment. We also noted the County’s procurement policy did not follow Uniform Guidance. Questioned Costs None Context In a population of 3, 2 transactions were tested and one of these transactions was not done through the proper procurement process. Also, our suspension and debarment population was two and we noted during testing of each transaction that the county did not ensure the vendor was not suspended or debarred from federal funds before entering into the covered transaction. Finally, we noted during review of the county’s procurement policy, it did not follow Uniform Guidance. Cause The County does not have sufficient procedures in place to ensure all expenditures comply with Uniform Guidance. Effect The County is not in compliance with Uniform Guidance. Repeat Finding No Recommendation The county should follow their procurement policy for procurement and should updated their procurement policy for suspension and debarment. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
Finding 2021-007
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Reporting Criteria A system of internal controls requires all reports to be review before being submitted. Also, federal requirements require reports be submitted accurately. Condition Two grant reports were required to be submitted during the period under audit. We noted both reports were not reviewed before submitting and one report did not agree with supporting documentation. Questioned Costs None Context The County was unable to provide evidence that grant reports were reviewed prior to submission. Cause The County does not have sufficient procedures in place to ensure all grant reporting is reviewed. Effect There is an increased risk of incorrect reporting. Repeat Finding No Recommendation The County should review their policies and procedures for grant repoting. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
Finding 2021-009
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Homeland Security Grant Program (CFDA 97.067) Reporting Criteria The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition Kittson County did not submit the data collection form to the Federal Audit Clearinghouse within the required time frame. Questioned Costs None Context The County is in violation of the reporting requirements when their audit was not completed withing the required timeframe. Cause The County’s general ledger accounts were not reconciled and the County was not ready for audit. Effect The County was not in compliance with federal reporting requirements. Repeat Finding No Recommendation The annual County audit should be completed within the timeframe allowed by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions The County Administrator will monitor the progress of the annual audit in the future so that the annual audit will be completed on a timely basis as described in our corrective action plan.
Finding 2021-009
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Homeland Security Grant Program (CFDA 97.067) Reporting Criteria The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition Kittson County did not submit the data collection form to the Federal Audit Clearinghouse within the required time frame. Questioned Costs None Context The County is in violation of the reporting requirements when their audit was not completed withing the required timeframe. Cause The County’s general ledger accounts were not reconciled and the County was not ready for audit. Effect The County was not in compliance with federal reporting requirements. Repeat Finding No Recommendation The annual County audit should be completed within the timeframe allowed by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions The County Administrator will monitor the progress of the annual audit in the future so that the annual audit will be completed on a timely basis as described in our corrective action plan.
Finding 2021-008
Federal Program Homeland Security Gran Program (CFDA 97.067) Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition Forty disbursements were selected for testing. One disbursement did not have documentation of required department head approval. Questioned Costs None Context The County was unable to provide evidence that certain grant expenditures had department head approval. Cause The County does not have sufficient procedures in place to ensure all expenditures have proper approval. Effect There is an increased risk of unallowable costs being charged to grants. Repeat Finding Yes. Prior audit finding 2020-004 Recommendation The County should review their policies and procedures for grant expenditures. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.
Finding 2021-009
Federal Program Coronavirus State and Local Fiscal Recovery Funds (CFDA 21.027) Homeland Security Grant Program (CFDA 97.067) Reporting Criteria The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition Kittson County did not submit the data collection form to the Federal Audit Clearinghouse within the required time frame. Questioned Costs None Context The County is in violation of the reporting requirements when their audit was not completed withing the required timeframe. Cause The County’s general ledger accounts were not reconciled and the County was not ready for audit. Effect The County was not in compliance with federal reporting requirements. Repeat Finding No Recommendation The annual County audit should be completed within the timeframe allowed by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions The County Administrator will monitor the progress of the annual audit in the future so that the annual audit will be completed on a timely basis as described in our corrective action plan.
Finding 2021-008
Federal Program Homeland Security Gran Program (CFDA 97.067) Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition Forty disbursements were selected for testing. One disbursement did not have documentation of required department head approval. Questioned Costs None Context The County was unable to provide evidence that certain grant expenditures had department head approval. Cause The County does not have sufficient procedures in place to ensure all expenditures have proper approval. Effect There is an increased risk of unallowable costs being charged to grants. Repeat Finding Yes. Prior audit finding 2020-004 Recommendation The County should review their policies and procedures for grant expenditures. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its policies and procedures.