Audit 359630

Finding 2024-001: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The County’s reports submitted to the Department of Treasury were not reviewed and approved by a separate individual outside of the preparer. Cause: Originally, the County did not have an internal control process in place to ensure a secondary review and approval of the reports submitted to the Department of Treasury were performed by someone other than the preparer of the report. An updated secondary review process was put in place in early 2024. Effect: Without a secondary review and approval, there is a possibility that the report may not be accurately completed. Questioned Costs: None. Context / Sampling: For the Coronavirus State and Local Fiscal Recovery Funds, a nonstatistical sample of 2 out of 4 reports were tested. Repeat Finding from Prior Year: Yes, prior year finding 2023-001 Recommendation: We recommend the County implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.

Finding 2024-003: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement Suspension and Debarment Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Per 31 CFR 19.300, prior to enter in subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR § 19.300. Condition: The County did not retain documentation of verifying that 6 vendors were not suspended, debarred, or otherwise excluded prior to entering into a transaction with them. Cause: The County performed the verification, but did not retain documentation and we were unable to verify that it was performed prior to the transaction. Effect: Vendors could be suspended, debarred, or otherwise excluded, and the county would not be aware. Questioned Costs: None Context / Sampling: We tested 32 of 158 transactions subject to suspension and debarment in the SLFRF program. Repeat Finding from Prior Year: Yes, prior year finding 2023-003 Recommendation: The County should retain documentation of the review of all vendors. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.

Finding 2024-001: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The County’s reports submitted to the Department of Treasury were not reviewed and approved by a separate individual outside of the preparer. Cause: Originally, the County did not have an internal control process in place to ensure a secondary review and approval of the reports submitted to the Department of Treasury were performed by someone other than the preparer of the report. An updated secondary review process was put in place in early 2024. Effect: Without a secondary review and approval, there is a possibility that the report may not be accurately completed. Questioned Costs: None. Context / Sampling: For the Coronavirus State and Local Fiscal Recovery Funds, a nonstatistical sample of 2 out of 4 reports were tested. Repeat Finding from Prior Year: Yes, prior year finding 2023-001 Recommendation: We recommend the County implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.

Finding 2024-003: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement Suspension and Debarment Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Per 31 CFR 19.300, prior to enter in subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR § 19.300. Condition: The County did not retain documentation of verifying that 6 vendors were not suspended, debarred, or otherwise excluded prior to entering into a transaction with them. Cause: The County performed the verification, but did not retain documentation and we were unable to verify that it was performed prior to the transaction. Effect: Vendors could be suspended, debarred, or otherwise excluded, and the county would not be aware. Questioned Costs: None Context / Sampling: We tested 32 of 158 transactions subject to suspension and debarment in the SLFRF program. Repeat Finding from Prior Year: Yes, prior year finding 2023-003 Recommendation: The County should retain documentation of the review of all vendors. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.