Audit 372246

Condition and Context: During our audit of the Public Safety Partnership and Community Policing Grant (CFDA 16.710), we were unable to obtain a copy of the required SF-425 (Federal Financial Report) submitted by the County. Criteria: Per 2 CFR 200.334, Non-Federal entities other than States, including those operating Federal programs as subrecipients of States, must retain financial records, supporting documents, and reports pertinent to federal awards for a period of three years from the date of submission of the final expenditure report. In addition, 2 CFR 200.327 and 200.328 require recipients to submit required financial reports, including the SF-425, to demonstrate accountability for grant expenditures. Cause: The County does not have adequate recordkeeping procedures in place to ensure that copies of all submitted federal reports, including the SF-425, are retained and available for audit. Effect: The inability to provide the SF-425 limited our ability to verify compliance with federal reporting requirements. Lack of adequate documentation may result in questioned costs, affect the granting agency’s ability to monitor the use of federal funds, and may place the County at risk of administrative findings in future audits. Recommendation: We recommend that the County implement procedures to ensure that copies of all required federal reports are retained in accordance with federal record retention requirements and made available for audit purposes. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will establish procedures to ensure that all required federal reports are retained and readily available for future monitoring and audits.

Condition and Context: The County does not have a complete set of written cash management policies and procedures required by the Uniform Guidance. The lack of written procedures did not result in any material noncompliance, fraud or abuse with respect to the major program. Criteria: The Uniform Guidance requires Non-Federal entities other than States, including those operating Federal programs as subrecipients of States, must follow the cash management standards set out at 2 CFR section 200.305. They must have a complete set of written cash management policies, which conform to applicable Federal statutes and the cash management requirements identified in 2 CFR part 200. Cause: The County was unaware of the written cash management policy requirements required by the Uniform Guidance. Effect: An important component of internal controls is the existence of operating policies and procedures and that they are clearly understood and communicated. Without clear written policies and procedures, there is a higher risk of noncompliance with program requirements. Recommendation: Management should determine the scope of written policies needed for compliance with all federal programs and develop policies and procedures to comply with the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. The County’s existing policies are currently under review by management and staff to determine what updates/changes are necessary in order to meet the Uniform Guidance requirements. Once any updates/changes are drafted, the policy will be presented to the Governing Body for review and approval.