Audit 355039

Criteria: 2 CFR Part 200 requires that nonfederal entities must establish and maintain effective internal control over federal awards to provide reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the specific award. The financial management system of each nonfederal entity must provide accurate, current, and complete disclosure of the financial results of each federal award in accordance with grant requirements. Condition: During our testing of the County’s compliance with the reporting requirements for the Assistance to Firefighters Grant, we noted that the Performance Progress Report (PPR) for the six-month period ended March 31, 2023 was not submitted by the due date of April 30, 2023. Cause: The County’s internal controls over compliance were not sufficient to prevent noncompliance with the terms of the grant. Effect: The County did not meet the timely reporting requirements of the grant. Questioned Costs: None. Recommendation: We recommend evaluate its internal controls over compliance and consider what changes can be made to ensure required reports for federal awards are submitted by their due dates. Management's Response: We concur that the Fire Department did not submit the Performance Progress Report by the due date. When the County Grants Manager realized the report was not filed, it was corrected immediately and filed on June 22, 2023. A dedicated Grants Division was established within the Finance Department during the second quarter of 2023 and has started the proper management of federal grants and reporting. In 2024, the Grants Division commenced full oversight of the entire grant lifecycle, which includes grant closeout. The Grants Division will closely monitor grant spending, compliance, record-keeping, budgeting, and financial oversight.

Criteria: 2 CFR Part 200 requires that nonfederal entities must establish and maintain effective internal control over federal awards to provide reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the specific award. The financial management system of each nonfederal entity must provide accurate, current, and complete disclosure of the financial results of each federal award in accordance with grant requirements. Condition: During our testing of the County’s compliance with the reporting requirements for the Assistance to Firefighters Grant, we noted that the Performance Progress Report (PPR) for the six-month period ended March 31, 2023 was not submitted by the due date of April 30, 2023. Cause: The County’s internal controls over compliance were not sufficient to prevent noncompliance with the terms of the grant. Effect: The County did not meet the timely reporting requirements of the grant. Questioned Costs: None. Recommendation: We recommend evaluate its internal controls over compliance and consider what changes can be made to ensure required reports for federal awards are submitted by their due dates. Management's Response: We concur that the Fire Department did not submit the Performance Progress Report by the due date. When the County Grants Manager realized the report was not filed, it was corrected immediately and filed on June 22, 2023. A dedicated Grants Division was established within the Finance Department during the second quarter of 2023 and has started the proper management of federal grants and reporting. In 2024, the Grants Division commenced full oversight of the entire grant lifecycle, which includes grant closeout. The Grants Division will closely monitor grant spending, compliance, record-keeping, budgeting, and financial oversight.