FAC Explorer

Audit 363775

FY End
2024-12-31
Total Expended
$1.13M
Findings
2
Programs
11
Organization: Rush County (IN)
Year: 2024 Accepted: 2025-08-06
Auditor: Indiana State Board of Accounts

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
572934 2024-001 Material Weakness - I
1149376 2024-001 Material Weakness - I

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $365,617 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $195,145 Yes 0
93.563 Child Support Services $172,993 - 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $170,003 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $110,000 - 0
16.588 Violence Against Women Formula Grants $41,021 - 0
93.788 Opioid Str $27,618 - 0
97.042 Emergency Management Performance Grants $21,645 - 0
93.069 Public Health Emergency Preparedness $17,828 - 0
93.268 Immunization Cooperative Agreements $4,603 - 0
93.658 Foster Care Title IV-E $3,856 - 0

Contacts

Name Title Type
LXYCJJWERTF5 Tammy Justice Auditee
7659322077 Beth Kelley, Cpa, Cfe Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1. Summary of Significant Accounting Policies A. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal award activity of the County under programs of the federal government for the year ended December 31, 2024. The information in the SEFA 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 SEFA presents only a select portion of the operations of the County, it is not intended to and does not present the financial position of the County. B. Other Significant Accounting Policies Expenditures reported on the SEFA are reported on the cash 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. When federal grants are received on a reimbursement basis, the federal awards are considered expended when the reimbursement is received. De Minimis Rate Used: N Rate Explanation: Note 2. Indirect Cost Rate The County has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance for awards prior to October 1, 2024, nor the de minimis indirect cost rate of up to 15 percent allowed under the Uniform Guidance for awards on or after October 1, 2024.

Finding Details

Finding 2024-001
FINDING 2024-001 Subject: Highway Planning and Construction - Procurement Federal Agency: Department of Transportation Federal Program: Highway Planning and Construction Assistance Listings Number: 20.205 Federal Award Numbers and Years (or Other Identifying Numbers): DES. Nos. 1600968, 1702753, 1802927, 1802929, 1902066, 2301613 Pass-Through Entity: Indiana Department of Transportation Compliance Requirement: Procurement and Suspension and Debarment Audit Findings: Material Weakness, Other Matters Condition and Context Recipients may use award funds to procure engineering and design-related services from consultants necessary to implement one or more eligible purposes outlined for the Highway Planning and Construction award funds. Subrecipients may adopt written policies and procedures prescribed by the awarding state DOT or prepare their own written policies and procedures approved by the Indiana Department of Transportation. The County did not have documented procurement procedures or policies used to procure engineering and design services. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 23 CFR 175 states in part: ". . . (b) Subrecipient responsibilities. Subrecipients shall develop and sustain organizational capacity and provide the resources necessary for the procurement, management, and administration of engineering and design related consultant services, reimbursed in whole or in part with FAHP funding as specified in 23 U.S.C. 106(g)(4)(A). Responsibilities shall include the following: (1) Adopting written policies and procedures prescribed by the awarding STA or other recipient for the procurement, management, and administration of engineering and design related consultant services in accordance with applicable Federal and State laws and regulations; or when not prescribed, shall include: (i) Preparing and maintaining its own written policies and procedures in accordance with paragraph (c) of this section; or (ii) Submitting documentation associated with each procurement and subsequent contract to the awarding STA or other grantee for review to assess compliance with applicable Federal and State laws, regulations, and the requirements of this part; (2) Procuring, managing, and administering engineering and design related consultant services in accordance with applicable Federal and State laws, regulations, and approved policies and procedures, as specified in 23 CFR 1.9(a). INDIANA STATE BOARD OF ACCOUNTS 14 RUSH COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (c) Written policies and procedures. The contracting agency shall prepare and maintain written policies and procedures for the procurement, management, and administration of engineering and design related consultant services. The FHWA shall approve the written policies and procedures, including all revisions to such policies and procedures, of the STA or recipient to assess compliance with applicable requirements. The STA or other recipient shall approve the written policies and procedures, including all revisions to such policies and procedures, of a subrecipient to assess compliance with applicable requirements. These policies and procedures shall address, as appropriate for each method of procurement a contracting agency proposes to use, the following items to ensure compliance with Federal and State laws, regulations, and the requirements of this part: (1) Preparing a scope of work and evaluation factors for the ranking/selection of a consultant; (2) Soliciting interests, qualifications, or proposals from prospective consultants; (3) Preventing, identifying, and mitigating conflicts of interest for employees of both the contracting agency and consultants and promptly disclosing in writing any potential conflict to the STA and FHWA, as specified in 2 CFR 200.112 and 23 CFR 1.33, and the requirements of this part. (4) Verifying suspension and debarment actions and eligibility of consultants, as specified in 2 CFR part 1200 and 2 CFR part 180; (5) Evaluating interests, qualifications, or proposals and the ranking/selection of a consultant; (6) Determining, based upon State procedures and the size and complexity of a project, the need for additional discussions following RFP submission and evaluation; (7) Preparing an independent agency estimate for use in negotiation with the selected consultant; (8) Selecting appropriate contract type, payment method, and terms and incorporating required contract provisions, assurances, and certifications in accordance with § 172.9; (9) Negotiating a contract with the selected consultant including instructions for proper disposal of concealed cost proposals of unsuccessful bidders; (10) Establishing elements of contract costs, accepting indirect cost rate(s) for application to contracts, and assuring consultant compliance with the Federal cost principles in accordance with § 172.11; (11) Ensuring consultant costs billed are allowable in accordance with the Federal cost principles and consistent with the contract terms as well as the acceptability and progress of the consultant's work; (12) Monitoring the consultant's work and compliance with the terms, conditions, and specifications of the contract; (13) Preparing a consultant's performance evaluation when services are completed and using such performance data in future evaluation and ranking of consultant to provide similar services; INDIANA STATE BOARD OF ACCOUNTS 15 RUSH COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (14) Closing-out a contract; (15) Retaining supporting programmatic and contract records, as specified in 2 CFR 200.333 and the requirements of this part; (16) Determining the extent to which the consultant, which is responsible for the professional quality, technical accuracy, and coordination of services, may be reasonably liable for costs resulting from errors and omissions in the work furnished under its contract; (17) Assessing administrative, contractual, or legal remedies in instances where consultants violate or breach contract terms and conditions, and providing for such sanctions and penalties as may be appropriate; and (18) Resolving disputes in the procurement, management, and administration of engineering and design related consultant services. (d) A contracting agency may formally adopt, by statute or within approved written policies and procedures as specified in paragraph (c) of this section, any direct Federal Government or other contracting regulation, standard, or procedure provided its application does not conflict with the provisions of 23 U.S.C. 112, the requirements of this part, and other laws and regulations applicable to the FAHP. (e) Notwithstanding paragraph (d) of this section, a contracting agency shall have a reasonable period of time, not to exceed 12 months from the effective date of this rule unless an extension is granted for unique or extenuating circumstances, to issue or update current written policies and procedures for review and approval in accordance with paragraph (c) of this section and consistent with the requirements of this part." 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Cause The County's management was not aware of the compliance requirement relating to the written procurement policy. Effect The failure to establish a written policy for Federal Procurement placed the County in noncompliance with the grant agreement and the Procurement and Suspension and Debarment compliance requirement. Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. INDIANA STATE BOARD OF ACCOUNTS 16 RUSH COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County's management establish written policies and procedures for the procurement of engineering and design services. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that part of this report.
Finding 2024-001
FINDING 2024-001 Subject: Highway Planning and Construction - Procurement Federal Agency: Department of Transportation Federal Program: Highway Planning and Construction Assistance Listings Number: 20.205 Federal Award Numbers and Years (or Other Identifying Numbers): DES. Nos. 1600968, 1702753, 1802927, 1802929, 1902066, 2301613 Pass-Through Entity: Indiana Department of Transportation Compliance Requirement: Procurement and Suspension and Debarment Audit Findings: Material Weakness, Other Matters Condition and Context Recipients may use award funds to procure engineering and design-related services from consultants necessary to implement one or more eligible purposes outlined for the Highway Planning and Construction award funds. Subrecipients may adopt written policies and procedures prescribed by the awarding state DOT or prepare their own written policies and procedures approved by the Indiana Department of Transportation. The County did not have documented procurement procedures or policies used to procure engineering and design services. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 23 CFR 175 states in part: ". . . (b) Subrecipient responsibilities. Subrecipients shall develop and sustain organizational capacity and provide the resources necessary for the procurement, management, and administration of engineering and design related consultant services, reimbursed in whole or in part with FAHP funding as specified in 23 U.S.C. 106(g)(4)(A). Responsibilities shall include the following: (1) Adopting written policies and procedures prescribed by the awarding STA or other recipient for the procurement, management, and administration of engineering and design related consultant services in accordance with applicable Federal and State laws and regulations; or when not prescribed, shall include: (i) Preparing and maintaining its own written policies and procedures in accordance with paragraph (c) of this section; or (ii) Submitting documentation associated with each procurement and subsequent contract to the awarding STA or other grantee for review to assess compliance with applicable Federal and State laws, regulations, and the requirements of this part; (2) Procuring, managing, and administering engineering and design related consultant services in accordance with applicable Federal and State laws, regulations, and approved policies and procedures, as specified in 23 CFR 1.9(a). INDIANA STATE BOARD OF ACCOUNTS 14 RUSH COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (c) Written policies and procedures. The contracting agency shall prepare and maintain written policies and procedures for the procurement, management, and administration of engineering and design related consultant services. The FHWA shall approve the written policies and procedures, including all revisions to such policies and procedures, of the STA or recipient to assess compliance with applicable requirements. The STA or other recipient shall approve the written policies and procedures, including all revisions to such policies and procedures, of a subrecipient to assess compliance with applicable requirements. These policies and procedures shall address, as appropriate for each method of procurement a contracting agency proposes to use, the following items to ensure compliance with Federal and State laws, regulations, and the requirements of this part: (1) Preparing a scope of work and evaluation factors for the ranking/selection of a consultant; (2) Soliciting interests, qualifications, or proposals from prospective consultants; (3) Preventing, identifying, and mitigating conflicts of interest for employees of both the contracting agency and consultants and promptly disclosing in writing any potential conflict to the STA and FHWA, as specified in 2 CFR 200.112 and 23 CFR 1.33, and the requirements of this part. (4) Verifying suspension and debarment actions and eligibility of consultants, as specified in 2 CFR part 1200 and 2 CFR part 180; (5) Evaluating interests, qualifications, or proposals and the ranking/selection of a consultant; (6) Determining, based upon State procedures and the size and complexity of a project, the need for additional discussions following RFP submission and evaluation; (7) Preparing an independent agency estimate for use in negotiation with the selected consultant; (8) Selecting appropriate contract type, payment method, and terms and incorporating required contract provisions, assurances, and certifications in accordance with § 172.9; (9) Negotiating a contract with the selected consultant including instructions for proper disposal of concealed cost proposals of unsuccessful bidders; (10) Establishing elements of contract costs, accepting indirect cost rate(s) for application to contracts, and assuring consultant compliance with the Federal cost principles in accordance with § 172.11; (11) Ensuring consultant costs billed are allowable in accordance with the Federal cost principles and consistent with the contract terms as well as the acceptability and progress of the consultant's work; (12) Monitoring the consultant's work and compliance with the terms, conditions, and specifications of the contract; (13) Preparing a consultant's performance evaluation when services are completed and using such performance data in future evaluation and ranking of consultant to provide similar services; INDIANA STATE BOARD OF ACCOUNTS 15 RUSH COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (14) Closing-out a contract; (15) Retaining supporting programmatic and contract records, as specified in 2 CFR 200.333 and the requirements of this part; (16) Determining the extent to which the consultant, which is responsible for the professional quality, technical accuracy, and coordination of services, may be reasonably liable for costs resulting from errors and omissions in the work furnished under its contract; (17) Assessing administrative, contractual, or legal remedies in instances where consultants violate or breach contract terms and conditions, and providing for such sanctions and penalties as may be appropriate; and (18) Resolving disputes in the procurement, management, and administration of engineering and design related consultant services. (d) A contracting agency may formally adopt, by statute or within approved written policies and procedures as specified in paragraph (c) of this section, any direct Federal Government or other contracting regulation, standard, or procedure provided its application does not conflict with the provisions of 23 U.S.C. 112, the requirements of this part, and other laws and regulations applicable to the FAHP. (e) Notwithstanding paragraph (d) of this section, a contracting agency shall have a reasonable period of time, not to exceed 12 months from the effective date of this rule unless an extension is granted for unique or extenuating circumstances, to issue or update current written policies and procedures for review and approval in accordance with paragraph (c) of this section and consistent with the requirements of this part." 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Cause The County's management was not aware of the compliance requirement relating to the written procurement policy. Effect The failure to establish a written policy for Federal Procurement placed the County in noncompliance with the grant agreement and the Procurement and Suspension and Debarment compliance requirement. Noncompliance with the grant agreement and the compliance requirement could result in the repayment of federal funds. INDIANA STATE BOARD OF ACCOUNTS 16 RUSH COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County's management establish written policies and procedures for the procurement of engineering and design services. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that part of this report.