FAC Explorer

Audit 359921

FY End
2024-12-31
Total Expended
$15.60M
Findings
8
Programs
29
Organization: Crow Wing County (MN)
Year: 2024 Accepted: 2025-06-25
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
567010 2024-003 Significant Deficiency Yes I
567011 2024-004 Significant Deficiency Yes L
567012 2024-002 Significant Deficiency - AB
567013 2024-002 Significant Deficiency - AB
1143452 2024-003 Significant Deficiency Yes I
1143453 2024-004 Significant Deficiency Yes L
1143454 2024-002 Significant Deficiency - AB
1143455 2024-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.02M Yes 2
20.205 Highway Planning and Construction $1.51M Yes 0
93.558 Temporary Assistance for Needy Families $642,053 Yes 1
93.658 Foster Care Title IV-E $572,567 - 0
97.067 Homeland Security Grant Program $377,477 - 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $375,167 - 0
93.667 Social Services Block Grant $349,536 - 0
93.563 Child Support Services $297,925 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $162,098 - 0
93.268 Immunization Cooperative Agreements $94,164 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $80,800 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $74,474 - 0
16.575 Crime Victim Assistance $68,722 - 0
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $67,217 - 0
93.994 Maternal and Child Health Services Block Grant to the States $66,203 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $59,730 - 0
93.069 Public Health Emergency Preparedness $48,051 - 0
93.590 Community-Based Child Abuse Prevention Grants $39,379 - 0
93.575 Child Care and Development Block Grant $38,951 - 0
93.778 Medical Assistance Program $33,698 - 0
97.012 Boating Safety Financial Assistance $21,127 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $18,298 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $16,817 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $9,209 - 0
16.607 Bulletproof Vest Partnership Program $8,526 - 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $6,289 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $3,939 - 0
93.767 Children's Health Insurance Program $1,356 - 0
16.710 Public Safety Partnership and Community Policing Grants $1,164 - 0

Contacts

Name Title Type
FM9SDDFC6KP6 Nancy Malecha Auditee
2188241048 Kristen Houle Auditor
No contacts on file

Notes to SEFA

Title: REPORTING ENTITY Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting for governmental funds. There are no federal expenditures related to the Landfill Enterprise fund. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The schedule of expenditures of federal awards (the schedule) presents the activities of federal award programs expended by Crow Wing County (the County). The County’s reporting entity is defined in Note I.A. to the financial statements.
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting for governmental funds. There are no federal expenditures related to the Landfill Enterprise fund. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of the County under programs of the federal government for the year ended December 31, 2024. 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) from the Office of Management and Budget (OMB). 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: RECONCILIATION TO SCHEDULE OF INTERGOVERNMENTAL REVENUE Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting for governmental funds. There are no federal expenditures related to the Landfill Enterprise fund. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Federal Grant Revenue per Schedule of Intergovernmental Revenue: $16,330,909 Expenditures above, not included as revenues on the Schedule of Intergovernmental Revenues $29,732 Revenues included on the Schedule of Intergovernmental Revenue that are not considered Federal Grant Expenditures $(761,277) Expenditures per Schedule of Expenditures of Federal Awards $15,599,364

Finding Details

Finding 2024-003
Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2024 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering a covered transaction. Condition: The County did not retain documentation for the date that the verification was completed. Questioned Costs: Unknown. Context: For one of five transactions tested for suspension and debarment, the County did not retain documentation that the verification was completed. Cause: Lack of oversight by management. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Prior year finding identified as Finding 2023-007. Recommendation: We recommend the County ensure all departments follow their county-wide policies regarding suspension and debarment requirements. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-004
Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2024 Compliance Requirement Affected: Reporting Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Treasury, the County is required to submit a quarterly project and expense report containing the expenditures incurred during each quarter. Condition: The County did not submit accurate expenditures on a quarterly report. Questioned Costs: None noted. Context: The fourth quarter Project and Expenditure report filed reported an inaccurate expenditure amount. This has since been corrected in the first quarter 2025 Project and Expenditure report. Cause: Lack of oversight by management. Effect: Ineligible costs could be reported. Repeat Finding: Prior year finding identified as Finding 2023-008. Recommendation: We recommend that the County review their policies and federal requirements to ensure all costs incurred are reported accurately. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2401MNTANF, 2024 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2401MNTANF Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to only report employees included on the Random Moment Study (RMS) on the RMS line of the 2550 Income Maintenance report. Condition: There was one employee who was not on the Random Moment Study listing but whose wages were included on the RMS line of the 2550 Income Maintenance report. Questioned Costs: Unknown. Context: For one of two quarters tested, there was one instance of an inaccurate payroll expense reporting. Cause: Lack of oversight by management. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County has a supervisor review all wages coded to ensure they are reported on the proper line of the 2550 Income Maintenance Report. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2401MNTANF, 2024 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2401MNTANF Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to only report employees included on the Random Moment Study (RMS) on the RMS line of the 2550 Income Maintenance report. Condition: There was one employee who was not on the Random Moment Study listing but whose wages were included on the RMS line of the 2550 Income Maintenance report. Questioned Costs: Unknown. Context: For one of two quarters tested, there was one instance of an inaccurate payroll expense reporting. Cause: Lack of oversight by management. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County has a supervisor review all wages coded to ensure they are reported on the proper line of the 2550 Income Maintenance Report. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2024 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering a covered transaction. Condition: The County did not retain documentation for the date that the verification was completed. Questioned Costs: Unknown. Context: For one of five transactions tested for suspension and debarment, the County did not retain documentation that the verification was completed. Cause: Lack of oversight by management. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Prior year finding identified as Finding 2023-007. Recommendation: We recommend the County ensure all departments follow their county-wide policies regarding suspension and debarment requirements. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-004
Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2024 Compliance Requirement Affected: Reporting Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Treasury, the County is required to submit a quarterly project and expense report containing the expenditures incurred during each quarter. Condition: The County did not submit accurate expenditures on a quarterly report. Questioned Costs: None noted. Context: The fourth quarter Project and Expenditure report filed reported an inaccurate expenditure amount. This has since been corrected in the first quarter 2025 Project and Expenditure report. Cause: Lack of oversight by management. Effect: Ineligible costs could be reported. Repeat Finding: Prior year finding identified as Finding 2023-008. Recommendation: We recommend that the County review their policies and federal requirements to ensure all costs incurred are reported accurately. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2401MNTANF, 2024 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2401MNTANF Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to only report employees included on the Random Moment Study (RMS) on the RMS line of the 2550 Income Maintenance report. Condition: There was one employee who was not on the Random Moment Study listing but whose wages were included on the RMS line of the 2550 Income Maintenance report. Questioned Costs: Unknown. Context: For one of two quarters tested, there was one instance of an inaccurate payroll expense reporting. Cause: Lack of oversight by management. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County has a supervisor review all wages coded to ensure they are reported on the proper line of the 2550 Income Maintenance Report. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2401MNTANF, 2024 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2401MNTANF Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to only report employees included on the Random Moment Study (RMS) on the RMS line of the 2550 Income Maintenance report. Condition: There was one employee who was not on the Random Moment Study listing but whose wages were included on the RMS line of the 2550 Income Maintenance report. Questioned Costs: Unknown. Context: For one of two quarters tested, there was one instance of an inaccurate payroll expense reporting. Cause: Lack of oversight by management. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County has a supervisor review all wages coded to ensure they are reported on the proper line of the 2550 Income Maintenance Report. Views of responsible officials: There is no disagreement with the audit finding.