Audit 372262

2024SA-003 Insufficient Subrecipient Monitoring Federal Agency/Passthrough Agency: US Department of Health and Human Services Program: SAMHSA Grant Depression Screening in School based Health Centers Federal Award Number: 43382006L Assistance Listing Number: 93.243 Material Weakness Material Noncompliance – Financial Management Criteria: 2 CFR 200.332 states the recipient should monitor the activities of the subrecipient as necessary to ensure that the subawards are used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR section 200.332 (d) through (f)), in addition to procedures identified as necessary based upon the evaluation of the subrecipient risk or specifically required by the terms and conditions of the award. Condition: The Health Department gave $100,000 to the Community Foundation of East Central IL to help fund new TASK programs at 4 local school districts. Our inquiry regarding subrecipient monitoring determined that no subrecipient monitoring was taking place. Context: From reviews of the County and Health Department’s internal control and accounting procedures along with inquiries made, it was indicated that the Health Department has not gained an adequate understanding of all of the compliance requirements related to federal awards and has not developed necessary internal controls to ensure compliance, including but not limited to subrecipient monitoring. Effect: Potential for misappropriation of funds by the subrecipient due to lack of monitoring. Questioned Costs: None. Cause: There is a systematic problem throughout the County regarding a lack of adequate knowledge of compliance requirements related to federal awards, a lack of documentation of risk assessments being completed, and a continued disregard for establishing and documenting effective internal controls, in particular there is an absence of secondary reviews and monitoring. Repeated Finding: No Recommendation: Review the federal guidelines and requirements related to management of federal awards. Establish and document a plan to ensure compliance with each requirement. In this instance, establish necessary procedures to monitor the subrecipient’s compliance with the federal guidelines. Management’s Response: The Health Department will establish procedurs for subrecipient monitoring.

2024SA-004 Insufficient Understanding of Federal Compliance Requirements Federal Agency/Passthrough Agency: US Department of Health and Human Services Program: SAMHSA Grant Depression Screening in School based Health Centers Federal Award Number: 43382006L Assistance Listing Number: 93.243 Material Weakness Material Noncompliance – Financial Management Criteria: 2 CFR section 200 and the OMB Compliance Supplement states the Grantee is required to gain an understanding of the federal compliance requirements for all federal grants received whether that be directly or passed through another agency. Grantees are then expected to design internal controls that will ensure compliance with those requirements. Additionally, management is required to evaluate the potential for fraud to occur in the administration of the grants to implement policies and procedures that will reduce the risk of fraud from occurring without detection to a low-level of risk. Condition: The Health Department Administrator lacks a clear understanding of federal compliance requirements and is not adhering to the County’s established grant policies. According to County policy, only the County Board Chairman, County Treasurer, and County Clerk are authorized signatories. Despite this, Amanda Minor, Health Department, Administrator has been independently signing the Health Department grant agreements. Context: From reviews of the County and Health Department’s grant policies, internal control and accounting procedures along with inquiries made, it was indicated that the Amanda is signing the grant agreements and does not have a sufficient understanding of federal compliance requirements and has not developed necessary internal controls to ensure compliance. Effect: 1) Increased risk of noncompliance with federal grant requirements. 2)Potential for unallowable costs and questioned costs that could require repayment. 3) Weakening of internal control structure, which may rise to a significant deficiency or material weakness in the audit. 4) Diminished accountability and oversight over federally funded programs. Questioned Costs: None. Cause: There is a systematic problem throughout the County regarding a lack of understanding of federal compliance requirements and following grant policies for each grant award. The County should enforce its grant policies by requiring only authorized officials to execute grant agreements and department heads should be trained on complying with grant agreements. Repeated Finding: No Recommendation: Review the federal guidelines and compliance requirements related to management of federal awards. Establish and document a plan to ensure compliance with each requirement. Management’s Response: The County will work to improve evaluation of compliance requirements and documentation of procedures implemented to ensure compliance.

2023SA-003 Insufficient Grant Monitoring Condition: From reviews of the County’s internal control and accounting procedures along with inquiries made, it was indicated that there was a high probability that transactions were not reported correctly. There is no review process in place. There is a systematic problem with lack of adequate documentation and monitoring of expenses paid for with grant funds throughout the County. The County needs to be able to compile a complete list of grants for the entire County and monitor that the grant activity is property reported. The County needs to have a better understanding of grant reporting requirements, grant restrictions, and compliance requirements. Current Status: Currently a finding

2011-004 Lack of Appropriate Personnel Condition: The County has not implemented procedures that would allow them to properly prepare the financial statements and related notes without the assistance of the auditors. Current Status: Currently a finding.

2018-005 Inadequate Grant Recordkeeping Condition: The County receives numerous grants that require detail reporting of income and expenses. The controls and procedures relative to accumulating information, allocating expenses, and preparing reports and financial statements is insufficient to accurately comply with reporting requirements, specifically the Schedule of Expenditures of Federal Awards and reconciling financial records to the Consolidated Year End Financial Report. The County needs to be continually monitoring grant spending and have a better understanding of their reporting requirements and also needs to implement a process of accounting for grants that produces accurate information that can be used to complete the required reports without a significant amount of effort. This includes having a complete list of grants for the entire County as a whole and monitoring that the grants have been spent correctly. Current Status: Currently a finding.