FAC Explorer

Audit 359145

FY End
2022-06-30
Total Expended
$6.76M
Findings
6
Programs
20
Organization: Apache County, Arizona (AZ)
Year: 2022 Accepted: 2025-06-18
Auditor: Snyder & Brown CPAS PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565319 2022-101 Material Weakness Yes L
565320 2022-102 Material Weakness - L
565321 2022-103 Material Weakness Yes N
1141761 2022-101 Material Weakness Yes L
1141762 2022-102 Material Weakness - L
1141763 2022-103 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.60M Yes 2
10.665 Schools and Roads - Grants to States $644,597 - 1
93.069 Public Health Emergency Preparedness $262,827 - 0
97.042 Emergency Management Performance Grants $211,643 - 0
93.539 Pphf Capacity Building Assistance to Strengthen Public Health Immunization Infrastructure and Performance Financed in Part by Prevention and Public Health Funds $210,147 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $196,178 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $185,050 - 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $82,130 - 0
16.575 Crime Victim Assistance $57,448 - 0
93.268 Immunization Cooperative Agreements $52,404 - 0
93.994 Maternal and Child Health Services Block Grant to the States $46,025 - 0
45.310 Grants to States $42,588 - 0
10.664 Cooperative Forestry Assistance $41,993 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $39,378 - 0
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $32,151 - 0
20.600 State and Community Highway Safety $20,637 - 0
10.704 Law Enforcement Agreements $14,879 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $12,529 - 0
16.607 Bulletproof Vest Partnership Program $7,180 - 0
90.404 Hava Election Security Grants $803 - 0

Contacts

Name Title Type
DJ1FMTLJL4V6 Ryan Patterson Auditee
9283377634 Dylan Brown Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Accounting Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The County did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The accompanying Schedule of Expenditures of Federal Awards includes Apache County's federal grant activity for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Title: Note 3 – Assistance listing number Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The County did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The program titles and Assistance Listing numbers were obtained from the federal or pass-through grantor or the 2022 Federal Assistance Listings.
Title: Note 4 - Indirect cost rate Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The County did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The County did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414.

Finding Details

Finding 2022-101
Finding 2022-101 Single Audit Reporting Package Not Filed Timely (Repeat Finding) (Material Weakness, Compliance Finding) Assistance Listing Number: 21.027 Cluster Title: N/A Program Titles: Coronavirus State and Local Fiscal Recovery Fund Federal Agency: U.S. Department of the Treasury Award Year: 2021 Award Number: None Compliance Requirement: Reporting Question Costs: None Criteria: The terms of the County’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year-end. Condition and context: The County’s single audit reporting package for the fiscal year ended June 30, 2022, was not submitted to the Federal Audit Clearinghouse within nine months after the County’s year-end. This finding is similar to prior year finding 2021-101. Cause: The cause was a continued lack of resources devoted to the accounting and year-end closing. Effect: The effect is the untimely submission of the single audit reporting package resulting in noncompliance with federal requirements. Recommendation: We recommend that the County evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the County’s submittal to the Federal Audit Clearinghouse. County’s Response: The County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Finding 2022-102
Finding 2021-102 Reporting (Material Weakness, Compliance Finding) Assistance Listing Number: 21.027 Cluster Title: N/A Program Titles: Coronavirus State and Local Fiscal Recovery Fund Federal Agency: U.S. Department of Treasury Award Year: 2021 Award Number: None Compliance Requirement: Reporting Question Costs: None Criteria: The Coronavirus State and Local Fiscal Recovery Fund requires the submission of quarterly expenditure reports. The amount should agree to the underlying accounting records. Condition and context: The cumulative expenditure amount reported on the quarterly reports did not agree to the underlying accounting records for the grant. The County reported that $12,363,513 was spent as of yearend. However, the accounting records showed expenditures totaling $4,597,076. Cause: The County does not have adequate policies and procedures in place to ensure that expenditures are reported properly. Effect: The County’s reports were overreported. Recommendation: The County should establish policies and procedures to ensure that the amounts reported are accurate and agree to the underlying accounting records. County’s Response: The County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Finding 2022-103
Finding 2022-103 Allocation of Forest Reserve Funds (Repeat Finding) (Material Weakness, Compliance Finding) Assistance Listing Number: 10.665 Cluster Title: Forest Service Schools and Roads Cluster Program Title: Schools and Roads – Grants to States Federal Agency: U.S. Department of Agriculture Award Year: 2021 Award Number: None Compliance Requirements: Special Tests and Provisions Question Costs: None Criteria: Arizona Revised Statutes (A.R.S.) 11-497 requires that the counties’ share of pass-through forest reserve monies from the United States be disbursed for the benefit of public schools and public roads at the direction of the board of supervisors. Further, a county may allocate a disproportionate amount of forest reserve monies between public schools and public roads as long as both categories receive a real benefit. Condition and context: Forest reserve monies for Apache County were not properly disbursed for the benefit of public schools and public roads in accordance with A.R.S. 11-497. The County instead disbursed the entire annual allocation of $644,597 to public school districts. This finding is similar to prior year finding 2021-103. Cause: The cause is that the Apache County Board of Supervisors decided that the County public schools had a greater need for funding than roads projects. Effect: The effect is that the County did not expend a portion of the grant monies on public roads and therefore knowingly continued to violate state statute. Recommendation: We recommend that the County stop violating state statute and distribute forest reserve monies in a manner that benefits both public schools and public roads as required by A.R.S. 11-497. County’s Response: The County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Finding 2022-101
Finding 2022-101 Single Audit Reporting Package Not Filed Timely (Repeat Finding) (Material Weakness, Compliance Finding) Assistance Listing Number: 21.027 Cluster Title: N/A Program Titles: Coronavirus State and Local Fiscal Recovery Fund Federal Agency: U.S. Department of the Treasury Award Year: 2021 Award Number: None Compliance Requirement: Reporting Question Costs: None Criteria: The terms of the County’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year-end. Condition and context: The County’s single audit reporting package for the fiscal year ended June 30, 2022, was not submitted to the Federal Audit Clearinghouse within nine months after the County’s year-end. This finding is similar to prior year finding 2021-101. Cause: The cause was a continued lack of resources devoted to the accounting and year-end closing. Effect: The effect is the untimely submission of the single audit reporting package resulting in noncompliance with federal requirements. Recommendation: We recommend that the County evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the County’s submittal to the Federal Audit Clearinghouse. County’s Response: The County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Finding 2022-102
Finding 2021-102 Reporting (Material Weakness, Compliance Finding) Assistance Listing Number: 21.027 Cluster Title: N/A Program Titles: Coronavirus State and Local Fiscal Recovery Fund Federal Agency: U.S. Department of Treasury Award Year: 2021 Award Number: None Compliance Requirement: Reporting Question Costs: None Criteria: The Coronavirus State and Local Fiscal Recovery Fund requires the submission of quarterly expenditure reports. The amount should agree to the underlying accounting records. Condition and context: The cumulative expenditure amount reported on the quarterly reports did not agree to the underlying accounting records for the grant. The County reported that $12,363,513 was spent as of yearend. However, the accounting records showed expenditures totaling $4,597,076. Cause: The County does not have adequate policies and procedures in place to ensure that expenditures are reported properly. Effect: The County’s reports were overreported. Recommendation: The County should establish policies and procedures to ensure that the amounts reported are accurate and agree to the underlying accounting records. County’s Response: The County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Finding 2022-103
Finding 2022-103 Allocation of Forest Reserve Funds (Repeat Finding) (Material Weakness, Compliance Finding) Assistance Listing Number: 10.665 Cluster Title: Forest Service Schools and Roads Cluster Program Title: Schools and Roads – Grants to States Federal Agency: U.S. Department of Agriculture Award Year: 2021 Award Number: None Compliance Requirements: Special Tests and Provisions Question Costs: None Criteria: Arizona Revised Statutes (A.R.S.) 11-497 requires that the counties’ share of pass-through forest reserve monies from the United States be disbursed for the benefit of public schools and public roads at the direction of the board of supervisors. Further, a county may allocate a disproportionate amount of forest reserve monies between public schools and public roads as long as both categories receive a real benefit. Condition and context: Forest reserve monies for Apache County were not properly disbursed for the benefit of public schools and public roads in accordance with A.R.S. 11-497. The County instead disbursed the entire annual allocation of $644,597 to public school districts. This finding is similar to prior year finding 2021-103. Cause: The cause is that the Apache County Board of Supervisors decided that the County public schools had a greater need for funding than roads projects. Effect: The effect is that the County did not expend a portion of the grant monies on public roads and therefore knowingly continued to violate state statute. Recommendation: We recommend that the County stop violating state statute and distribute forest reserve monies in a manner that benefits both public schools and public roads as required by A.R.S. 11-497. County’s Response: The County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.