FAC Explorer

Audit 355905

FY End
2024-06-30
Total Expended
$133.18M
Findings
6
Programs
66
Organization: Shelby County, Tn (TN)
Year: 2024 Accepted: 2025-05-08
Auditor: Watkins Uiberall PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
559993 2024-004 Significant Deficiency - L
559994 2024-005 Significant Deficiency - I
559995 2024-006 Significant Deficiency - P
1136435 2024-004 Significant Deficiency - L
1136436 2024-005 Significant Deficiency - I
1136437 2024-006 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $29.61M Yes 1
93.568 Low-Income Home Energy Assistance $25.24M Yes 1
14.272 National Disaster Resilience Competition $9.19M - 0
93.914 Hiv Emergency Relief Project Grants $7.92M - 0
93.268 Immunization Cooperative Agreements $5.98M Yes 1
21.023 Emergency Rental Assistance Program $5.90M Yes 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $5.63M - 0
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $5.05M - 0
20.205 Highway Planning and Construction $4.53M Yes 0
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $3.22M - 0
93.569 Community Services Block Grant $2.35M - 0
93.940 Hiv Prevention Activities Health Department Based $2.23M - 0
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B $2.09M - 0
93.563 Child Support Services $1.39M - 0
14.218 Community Development Block Grants/entitlement Grants $1.32M - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $1.31M - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $1.27M - 0
16.575 Crime Victim Assistance $1.26M - 0
93.052 National Family Caregiver Support, Title Iii, Part E $1.23M - 0
14.900 Lead Hazard Reduction Grant Program $1.20M - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1.19M - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $1.05M - 0
93.817 Hospital Preparedness Program (hpp) Ebola Preparedness and Response Activities $917,800 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $897,159 - 0
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $865,069 - 0
97.067 Homeland Security Grant Program $826,092 - 0
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $789,470 - 0
93.994 Preventive Health and Health Services Block Grant $663,561 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $630,741 - 0
20.607 Alcohol Open Container Requirements $582,628 - 0
97.042 Emergency Management Performance Grants $497,387 - 0
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $482,293 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $465,000 - 0
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $412,891 - 0
16.582 Crime Victim Assistance/discretionary Grants $389,941 - 0
66.001 Air Pollution Control Program Support $372,867 - 0
14.239 Home Investment Partnerships Program $349,526 - 0
97.056 Port Security Grant Program $330,882 - 0
93.917 Hiv Care Formula Grants $319,868 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $310,728 - 0
95.001 High Intensity Drug Trafficking Areas Program $289,857 - 0
93.053 Nutrition Services Incentive Program $287,509 - 0
93.575 Child Care and Development Block Grant $250,381 - 0
16.833 National Sexual Assault Kit Initiative $213,213 - 0
16.017 Sexual Assault Services Formula Program $208,726 - 0
93.283 Centers for Disease Control and Prevention Investigations and Technical Assistance $194,577 - 0
81.086 Conservation Research and Development $173,266 - 0
16.585 Treatment Court Discretionary Grant Program $147,761 - 0
16.812 Second Chance Act Reentry Initiative $118,568 - 0
93.991 Sexually Transmitted Diseases (std) Prevention and Control Grants $116,091 - 0
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $111,727 - 0
93.977 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $111,653 - 0
16.609 Project Safe Neighborhoods $96,516 - 0
93.324 State Health Insurance Assistance Program $84,744 - 0
66.046 Climate Pollution Reduction Grants $83,745 - 0
93.747 Elder Abuse Prevention Interventions Program $80,438 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $71,475 - 0
93.071 Medicare Enrollment Assistance Program $63,171 - 0
16.588 Violence Against Women Formula Grants $54,662 - 0
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $50,181 - 0
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $40,565 - 0
20.616 National Priority Safety Programs $34,978 - 0
20.600 State and Community Highway Safety $19,570 - 0
14.231 Emergency Solutions Grant Program $18,774 - 0
93.247 Advanced Nursing Education Workforce Grant Program $15,000 - 0
93.946 Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative Programs $3,500 - 0

Contacts

Name Title Type
F663H7K72GR4 Gregory Cobbige Auditee
9012222204 Karen Gondan Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: The Schedule is presented on the modified accrual basis of accounting, consistent with accounting for governmental type funds. Under this basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”), which is generally when the allowable program expenditures are incurred. Expenditures and transfers out are recorded when the related program liability is incurred, except for certain compensated absences. Such expenditures are recognized following the cost principles contained in the OMB Circular A-87, Cost Principles for State, Local, and Tribal Governments, or the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts reflected in the schedule represent adjustments or credits resulting from the normal course of business to amounts reported as expenditures in prior years. 2) Pass-through entity identifying numbers are presented where available. 3) The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards and state financial assistance (the “Schedule”) includes the federal and state grant activity of Shelby County, Tennessee (the “County”) under programs of the federal and state government for the year ended June 30, 2024 (the Shelby County Health Care Corporation and the Shelby County Board of Education, component units of the County, issue separate financial reports and are not included in the Schedule). 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 the County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The Schedule is presented on the modified accrual basis of accounting, consistent with accounting for governmental type funds. Under this basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”), which is generally when the allowable program expenditures are incurred. Expenditures and transfers out are recorded when the related program liability is incurred, except for certain compensated absences. Such expenditures are recognized following the cost principles contained in the OMB Circular A-87, Cost Principles for State, Local, and Tribal Governments, or the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts reflected in the schedule represent adjustments or credits resulting from the normal course of business to amounts reported as expenditures in prior years. 2) Pass-through entity identifying numbers are presented where available. 3) The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 1) The Schedule is presented on the modified accrual basis of accounting, consistent with accounting for governmental type funds. Under this basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”), which is generally when the allowable program expenditures are incurred. Expenditures and transfers out are recorded when the related program liability is incurred, except for certain compensated absences. Such expenditures are recognized following the cost principles contained in the OMB Circular A-87, Cost Principles for State, Local, and Tribal Governments, or the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts reflected in the schedule represent adjustments or credits resulting from the normal course of business to amounts reported as expenditures in prior years. 2) Pass-through entity identifying numbers are presented where available. 3) The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 3 – RECONCILIATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE TO THE FINANCIAL STATEMENTS Accounting Policies: The Schedule is presented on the modified accrual basis of accounting, consistent with accounting for governmental type funds. Under this basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”), which is generally when the allowable program expenditures are incurred. Expenditures and transfers out are recorded when the related program liability is incurred, except for certain compensated absences. Such expenditures are recognized following the cost principles contained in the OMB Circular A-87, Cost Principles for State, Local, and Tribal Governments, or the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts reflected in the schedule represent adjustments or credits resulting from the normal course of business to amounts reported as expenditures in prior years. 2) Pass-through entity identifying numbers are presented where available. 3) The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The following is a reconciliation of expenditures per the schedule of expenditures of federal awards and state financial assistance to the revenues in the grant fund, per the County’s financial statements: Totals per schedule of expenditures $ 150,254,472 Less: Grant revenues in non-grant funds (15,000) Add: Local grants not shown on this schedule 6,520,162 Add: Other revenues in grant fund 1,529,469 Total grant fund revenues $ 158,289,103

Finding Details

Finding 2024-004
Federal Expenditures Were Not Billed for Reimbursement Timely Tennessee Department of Human Services Low-Income Home Energy Assistance Assistance Listing No. – 93.568 Compliance Requirement – Reporting Criteria: In accordance with the State of Tennessee Housing Development Agency, reimbursable grant expenditures should be billed on a monthly basis. Condition: Federal expenditures were not billed for reimbursement timely. Cause: Significant turnover within the Community Services Agency disrupted routine processes and contributed to inadequate oversight of reimbursement submission deadlines. Transition periods lacked sufficient raining and continuity of operations to ensure compliance. Effect: Grant revenues were recognized in the incorrect period. Continued untimely submissions could lead to potential decreases in funds received. Recommendation: The monthly accounting close procedures should include a reconciliation of all federal expenditures incurred and include invoicing for those expenditures to ensure timely billing. View of Responsible Officials: See management’s corrective action plan.
Finding 2024-005
Lack of Adherence to Procurement Policy Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No. – 21.027 Compliance Requirement – Procurement Criteria: Per Uniform Guidance 2 CFR 200.319, procurement methods are required to promote full and open competition, with appropriate records maintained to justify procurement decisions. Condition: The County failed to adhere to established procurement policies in place during the acquisition of goods and services under federally funded programs. Multiple transactions lacked required documentation, such as documentation of three quotes obtained or requests for bids. Cause: Expenditures were not routed through the procurement department due to insufficient coordination between departments. Decentralized processes allowed individual departments to make purchases independently, bypassing established procedures. Effect: Non-compliance with procurement policies increases the risk of improper expenditures and may result in repayment obligations to the grantor agency. Recommendation: Properly follow existing procurement policies in place, including mandatory documentation of quotes and requests for bids. Provide staff training on federal procurement requirements and establish periodic internal audits to ensure compliance. View of Responsible Officials: See management’s corrective action plan.
Finding 2024-006
Lack of Review and Approval for Monthly Reimbursement Requests Tennessee Department of Health Immunization Cooperative Agreements Assistance Listing No. – 93.268 Criteria: Per Uniform Guidance 2 CFR 200.3303, governments expending federal funds must establish internal controls that ensure accurate financial reporting and compliance with federal statues, regulations, and grant terms. Financial reports, including reimbursement requests, should be subject to review and approval to prevent errors and ensure accountability. Condition: Requests for reimbursements were prepared and submitted by a single program personnel and lacked a level of review and approval by other program personnel prior to submission. Cause: The County lacked established internal controls requiring an independent review and approval process for reimbursement requests before submission. This gap resulted from a reliance on a single individual to manage the reimbursement process without appropriate oversight. Effect: The absence of a formal review and approval process increases the risk of errors or inaccuracies in reimbursement requests. This deficiency could result in non-compliance with grant requirements, overstatement or understatement of reimbursable amounts, and potential loss of federal funds. Recommendation: Implement a formalized process requiring review and approval of all reimbursement requests prior to submission. This process should include clearly documented roles and responsibilities for preparers and approvers to strengthen internal controls and ensure compliance with federal program requirements. View of Responsible Officials: See management’s corrective action plan.
Finding 2024-004
Federal Expenditures Were Not Billed for Reimbursement Timely Tennessee Department of Human Services Low-Income Home Energy Assistance Assistance Listing No. – 93.568 Compliance Requirement – Reporting Criteria: In accordance with the State of Tennessee Housing Development Agency, reimbursable grant expenditures should be billed on a monthly basis. Condition: Federal expenditures were not billed for reimbursement timely. Cause: Significant turnover within the Community Services Agency disrupted routine processes and contributed to inadequate oversight of reimbursement submission deadlines. Transition periods lacked sufficient raining and continuity of operations to ensure compliance. Effect: Grant revenues were recognized in the incorrect period. Continued untimely submissions could lead to potential decreases in funds received. Recommendation: The monthly accounting close procedures should include a reconciliation of all federal expenditures incurred and include invoicing for those expenditures to ensure timely billing. View of Responsible Officials: See management’s corrective action plan.
Finding 2024-005
Lack of Adherence to Procurement Policy Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No. – 21.027 Compliance Requirement – Procurement Criteria: Per Uniform Guidance 2 CFR 200.319, procurement methods are required to promote full and open competition, with appropriate records maintained to justify procurement decisions. Condition: The County failed to adhere to established procurement policies in place during the acquisition of goods and services under federally funded programs. Multiple transactions lacked required documentation, such as documentation of three quotes obtained or requests for bids. Cause: Expenditures were not routed through the procurement department due to insufficient coordination between departments. Decentralized processes allowed individual departments to make purchases independently, bypassing established procedures. Effect: Non-compliance with procurement policies increases the risk of improper expenditures and may result in repayment obligations to the grantor agency. Recommendation: Properly follow existing procurement policies in place, including mandatory documentation of quotes and requests for bids. Provide staff training on federal procurement requirements and establish periodic internal audits to ensure compliance. View of Responsible Officials: See management’s corrective action plan.
Finding 2024-006
Lack of Review and Approval for Monthly Reimbursement Requests Tennessee Department of Health Immunization Cooperative Agreements Assistance Listing No. – 93.268 Criteria: Per Uniform Guidance 2 CFR 200.3303, governments expending federal funds must establish internal controls that ensure accurate financial reporting and compliance with federal statues, regulations, and grant terms. Financial reports, including reimbursement requests, should be subject to review and approval to prevent errors and ensure accountability. Condition: Requests for reimbursements were prepared and submitted by a single program personnel and lacked a level of review and approval by other program personnel prior to submission. Cause: The County lacked established internal controls requiring an independent review and approval process for reimbursement requests before submission. This gap resulted from a reliance on a single individual to manage the reimbursement process without appropriate oversight. Effect: The absence of a formal review and approval process increases the risk of errors or inaccuracies in reimbursement requests. This deficiency could result in non-compliance with grant requirements, overstatement or understatement of reimbursable amounts, and potential loss of federal funds. Recommendation: Implement a formalized process requiring review and approval of all reimbursement requests prior to submission. This process should include clearly documented roles and responsibilities for preparers and approvers to strengthen internal controls and ensure compliance with federal program requirements. View of Responsible Officials: See management’s corrective action plan.