FAC Explorer

Audit 35000

FY End
2022-12-31
Total Expended
$5.97M
Findings
4
Programs
11
Organization: Redwood County (MN)
Year: 2022 Accepted: 2023-07-27
Auditor: Office of the State Auditor

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38200 2022-001 Material Weakness Yes L
38201 2022-001 Material Weakness Yes L
614642 2022-001 Material Weakness Yes L
614643 2022-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $3.42M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.52M Yes 1
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $267,604 - 0
90.404 Covid-19 2018 Hava Election Security Grants $27,593 - 0
97.042 Emergency Management Performance Grants $20,029 - 0
16.575 Crime Victim Assistance $19,662 - 0
16.607 Bulletproof Vest Partnership Program $4,368 - 0
97.012 Boating Safety Financial Assistance $2,072 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $1,466 - 0
20.616 National Priority Safety Programs $1,340 - 0
20.600 State and Community Highway Safety $1,118 - 0

Contacts

Name Title Type
YUXUVCV87FQ5 Jean Price Auditee
5076374013 Julie Blaha Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation to Schedule of Intergovernmental Revenue Accounting Policies: Report EntityThe Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by Redwood County. The Countys reporting entity is defined in Note 1 to the financial statements.Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Redwood County under programs of the federal government for the year ended December 31, 2022. 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 Redwood County, it is not intended to and does not present the financial position, changes in net position, or cash flows of Redwood 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: The auditee did not use the de minimis cost rate. Reconciliation to Schedule of Intergovernmental RevenueFederal grant revenue per Schedule of Intergovernmental Revenue$ 4,434,756Grants received more than 60 days after year-end, considered unavailable revenue in 2022Highway Planning and Construction (AL No. 20.205)365,035Disaster Grants Public Assistance (Presidentially Declared Disasters (AL No. 97.036))1,170,120Expenditures per Schedule of Expenditures of Federal Awards$ 5,969,911

Finding Details

Finding 2022-001
2022-001 Performance Reporting Prior Year Finding Number: 2021-002 Repeat Finding Since: 2021 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Homeland Security Program: 97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Award Number and Year: ID 127-UJNE1-00 FEMA-4390-DR-MN GM PROJECT 75390-PW 615, PA-05-MN-4442-PW-01317(0); 2021, 2022 Pass-Through Agency: Minnesota Department of Public Safety 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. Quarterly performance reports (QPR) are due to the Minnesota Department of Public Safety-Homeland Security and Emergency Management (DPS-HSEM) no later than 15 days following the end of a quarter. Condition: Two of the four quarterly performance reports tested did not have supporting documentation on file, therefore, auditor was unable to trace the reports to supporting data. In addition, two of the four reports tested were not submitted by the due date of 15 days following the end of the quarter. Finally, the County has not implemented control procedures over the reporting process, including review. Questioned Costs: None. Context: Quarterly performance reports are required for large projects. A project is considered large if the total cost is above a threshold that is annually reviewed and adjusted by FEMA. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Redwood County is not in compliance with performance reporting requirements. Cause: County staff noted the individual responsible for preparing and submitting the reports resigned before the County was able to implement controls over the reporting process. Recommendation: We recommend Redwood County maintain supporting documentation for and prepare and submit quarterly performance reports as scheduled. We also recommend the County implement a procedure to review the reports for accuracy by someone other than the preparer prior to submission. View of Responsible Official: Acknowledge
Finding 2022-001
2022-001 Performance Reporting Prior Year Finding Number: 2021-002 Repeat Finding Since: 2021 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Homeland Security Program: 97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Award Number and Year: ID 127-UJNE1-00 FEMA-4390-DR-MN GM PROJECT 75390-PW 615, PA-05-MN-4442-PW-01317(0); 2021, 2022 Pass-Through Agency: Minnesota Department of Public Safety 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. Quarterly performance reports (QPR) are due to the Minnesota Department of Public Safety-Homeland Security and Emergency Management (DPS-HSEM) no later than 15 days following the end of a quarter. Condition: Two of the four quarterly performance reports tested did not have supporting documentation on file, therefore, auditor was unable to trace the reports to supporting data. In addition, two of the four reports tested were not submitted by the due date of 15 days following the end of the quarter. Finally, the County has not implemented control procedures over the reporting process, including review. Questioned Costs: None. Context: Quarterly performance reports are required for large projects. A project is considered large if the total cost is above a threshold that is annually reviewed and adjusted by FEMA. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Redwood County is not in compliance with performance reporting requirements. Cause: County staff noted the individual responsible for preparing and submitting the reports resigned before the County was able to implement controls over the reporting process. Recommendation: We recommend Redwood County maintain supporting documentation for and prepare and submit quarterly performance reports as scheduled. We also recommend the County implement a procedure to review the reports for accuracy by someone other than the preparer prior to submission. View of Responsible Official: Acknowledge
Finding 2022-001
2022-001 Performance Reporting Prior Year Finding Number: 2021-002 Repeat Finding Since: 2021 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Homeland Security Program: 97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Award Number and Year: ID 127-UJNE1-00 FEMA-4390-DR-MN GM PROJECT 75390-PW 615, PA-05-MN-4442-PW-01317(0); 2021, 2022 Pass-Through Agency: Minnesota Department of Public Safety 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. Quarterly performance reports (QPR) are due to the Minnesota Department of Public Safety-Homeland Security and Emergency Management (DPS-HSEM) no later than 15 days following the end of a quarter. Condition: Two of the four quarterly performance reports tested did not have supporting documentation on file, therefore, auditor was unable to trace the reports to supporting data. In addition, two of the four reports tested were not submitted by the due date of 15 days following the end of the quarter. Finally, the County has not implemented control procedures over the reporting process, including review. Questioned Costs: None. Context: Quarterly performance reports are required for large projects. A project is considered large if the total cost is above a threshold that is annually reviewed and adjusted by FEMA. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Redwood County is not in compliance with performance reporting requirements. Cause: County staff noted the individual responsible for preparing and submitting the reports resigned before the County was able to implement controls over the reporting process. Recommendation: We recommend Redwood County maintain supporting documentation for and prepare and submit quarterly performance reports as scheduled. We also recommend the County implement a procedure to review the reports for accuracy by someone other than the preparer prior to submission. View of Responsible Official: Acknowledge
Finding 2022-001
2022-001 Performance Reporting Prior Year Finding Number: 2021-002 Repeat Finding Since: 2021 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Homeland Security Program: 97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Award Number and Year: ID 127-UJNE1-00 FEMA-4390-DR-MN GM PROJECT 75390-PW 615, PA-05-MN-4442-PW-01317(0); 2021, 2022 Pass-Through Agency: Minnesota Department of Public Safety 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. Quarterly performance reports (QPR) are due to the Minnesota Department of Public Safety-Homeland Security and Emergency Management (DPS-HSEM) no later than 15 days following the end of a quarter. Condition: Two of the four quarterly performance reports tested did not have supporting documentation on file, therefore, auditor was unable to trace the reports to supporting data. In addition, two of the four reports tested were not submitted by the due date of 15 days following the end of the quarter. Finally, the County has not implemented control procedures over the reporting process, including review. Questioned Costs: None. Context: Quarterly performance reports are required for large projects. A project is considered large if the total cost is above a threshold that is annually reviewed and adjusted by FEMA. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Redwood County is not in compliance with performance reporting requirements. Cause: County staff noted the individual responsible for preparing and submitting the reports resigned before the County was able to implement controls over the reporting process. Recommendation: We recommend Redwood County maintain supporting documentation for and prepare and submit quarterly performance reports as scheduled. We also recommend the County implement a procedure to review the reports for accuracy by someone other than the preparer prior to submission. View of Responsible Official: Acknowledge