Audit 371223

Criteria: OMB's Uniform Guidance 2 CFR 200.512 requires timely reconciliation and approval of grant expenditures prior to requesting reimbursement of grant expenditures from federal agencies. Condition: It appears The County of Newton, Texas does not reconcile grant expenditures and seek management review and approval prior to requesting reimbursement for grant expenditures prior to submitting requests for reimbursement. Cause:, It appears the County of Newton, Texas management and staff relies heavily on outside resources to provide the necessary monitoring of grant activities and expenditures including compliance matters. In addition, it appears the County of Newton, Texas management and staff relies on outside resources to reconcile and prepare grant expenditure reimbursement requests for reimbursement. Effect: The overreliance and the absence of reconciliation of grant expenditures prior to requests for reimbursement coupled with an understanding of required compliance attributes associated with each individual grant may lead to incomplete and inaccurate requests for reimbursement of grant expenditures. Recommendation: The County of Newton, Texas's Commissioner's should adopt, and management should implement internal controls to ensure proper reconciliations be performed and management approval prior to requesting reimbursement for grant expenditures. In addition, the County of Newton, Texas’s Commissioners should provide resources and support for the continued education and training of both management and staff regarding compliance attributes associated with requirements as per the Uniform Guidance 2 CFR 200.

Criteria: OMB's Uniform Guidance 2 CFR 200.512 requires a Data Collection form to be filed the earlier of 30 days after receipt of the Single Audit Report of nine months after year-end for those entities expending more than $750,000 of federal funds. Condition: The County of Newton, Texas did not file the required Data Collection form within the required time period. Cause: Due to a change in staffing of management level positions, including the County Treasurer and County Judge, the County of Newton, Texas was unable to compile its internal reports and prepare its financial statements in a timely manner for audit. Due to the timing of the preparation of the financial statements, the County of Newton, Texas was unable to submit the Data Collection form timely and was not in compliance with reporting requirements. Effect: The noncompliance with compliance attributes required under the Uniform Guidance 2 CFR 200 may affect the County of Newton, Texas's current grant contracts and the opportunity to qualify for future grants.Recommendation: The County of Newton, Texas's Commissioner's should adopt and management should implement internal controls over oversight, monitoring and reporting to ensure compliance requirements as per the Uniform Guidance 2 CFR 200.