Audit 372243

Finding 2024-003 – Reporting Repeat Finding – See Finding 2023-002 US Department of the Treasury – COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ARPA) (ALN 21.027) Condition: The County’s submitted reports for ARPA do not materially agree to the expenditures reported in the trial balance. Criteria: In accordance with the federal compliance requirements for ARPA, current reporting period expenditures and cumulative expenditures must be entered for each project. Cause: There was not a review and a reconciliation of the amounts being submitted on the reports to the amounts recorded in the trial balance. Effect: The County is not in compliance with reporting requirements, and failure to comply with grant award requirements could jeopardize future funding and does not allow the funder to adequately oversee the use of their funding. Repeat Finding: Yes Questioned Costs: Unknown Recommendation: We recommend that the County continue its efforts in evaluating its procedures to ensure that all required reports are accurately submitted. Management Response: See corrective action plan.

Finding 2024-002 – Subrecipient Monitoring US Department of Health and Human Services - Passed through the Pennsylvania Department of Human Services – Foster Care Title IV-E (ALN 93.658) US Department of Health and Human Services - Passed through the Pennsylvania Department of Aging – Aging Cluster (ALNs 93.044, 93.045, and 93.053) Grant Number 4100089721 Condition: The County has internal controls in place to monitor subrecipients of Foster Care Title IV-E and aging funding, however, the policies do not incorporate all required federal compliance requirements. For Aging, the County did not conduct the annual risk assessment prior to the disbursement of funds. The County did not ensure that all Foster Care Title IV-E and aging subrecipients were notified via contract or letter of the subaward ALN and amount that was paid during the year. Additionally, the County only request audits from subrecipients if the county passes over $150,000 federal dollars to the subrecipient. As part of the monitoring process, the County obtained and reviewed annual audit reports for a portion of, but not all of, the subrecipients in a timely manner in order to ensure the subrecipients complied with the Foster Care Title IV-E and Aging requirements. Criteria: In accordance with the federal compliance requirements all pass through entities must ensure that every subaward is clearly identified to the subrecipient and includes specific information as discussed at 2 CFR 200.332(b). Additionally, 2 CFR 200.332(e) and 200.332(g) requires the pass through entity to resolve audit finding specifically related to the subaward and to verify that a subrecipient is audited as required by subpart f of this requirement. Finally, 2 CFR 200.332 (c) requires that the County evaluate all subrecipient’s fraud risk and risk of noncompliance with a subaward to determine the appropriate monitoring. Cause: Procedures are in place over subrecipient monitoring, however the procedures to ensure that subrecipients are notified of the requirements listed in 2 CFR 200.332(b) are not adequate. The County also only requires audits and follows up on any deficiencies for subrecipients that they pass through more than $150,000 in federal funding, which is not adequate in accordance with 2 CFR 200.332(e) and 200.332(g). Finally, the county did not perform a timely annual risk assessment for Aging subrecipients in accordance with 2 CFR 200.332 (c). Effect: Subrecipients may have been unaware of the federal nature of their funding, relevant compliance requirements, and the need to prepare for single audit submission as required under federal regulations. Additionally, incomplete monitoring of subrecipient audits may result in noncompliance with federal program requirements and increase the risk of misuse or mismanagement of federal funds. Repeat Finding: This is not a repeat finding Questioned Costs: Unknown Recommendation: We recommend that procedures be implemented to ensure all subrecipients are notified of subaward requirements as outlined in 2 CFR 200.332(b) and the County implement a process to ensure all subrecipients audits are reviewed and deficiencies be followed up on. We also recommend that the County perform annual risk assessments for all subrecipients. Management Response: See corrective action plan.