Audit 372563

2024-003 Uniform Grant Guidance Implementation Federal Assistance Listing Number – All Federal Agency: All Federal Program Title: All State Identification Number: All State Agency: All State Program Title: All Pass-Through Agency: All Pass-Through Numbers(s): All Award Period: All Compliance Requirement: Allowable costs/cost principles, cash management, procurement, suspension and debarment, and reporting Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Uniform Guidance and the State Single Audit Guidelines requires the County to maintain certain policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal and state awards to safeguard federal and state funds. Condition: The County has various policies and procedures in place to safeguard its assets and establish related controls over receipts, disbursements, payroll transactions and general ledger maintenance. Federal awards received and disbursed by the County are managed through these county-wide policies and procedures; however, the policies and procedures have not been evaluated to ensure compliance with requirements of Uniform Guidance. As an example, the County is required to have an allowable cost policy which establishes the responsible officials who are able to determine if a cost is allowable. While expenditures tested had documentation of approval, some lacked proper documentation to determine allowability. Implementing a formal policy in accordance with Uniform Guidance and the State Single Audit Guidelines would improve transparency and effectiveness of the County’s documentation. Questioned Costs: None Context: While performing audit procedures, it was noted that the County does not have policies in place that conform to Uniform Grant Guidance and the State Single Audit Guidelines requirements. Cause: The County has not completed an assessment of its financial management system and related internal controls over federal and state awards, along with an evaluation of existing policies for compliance with Uniform Guidance and the State Single Audit Guidelines by year-end. Effect: The County could become noncompliant with requirements of Uniform Guidance and the State Single Audit Guidelines, resulting in future findings and questioned costs related to federal and state awards administered by the County. The County’s 2023 audit in accordance with the requirements of Uniform Guidance identified several instances where proper documentation was not available to determine appropriateness with respect to direct and material compliance requirements of its major federal awards programs. Repeat Finding: This is a repeat of finding 2023-005. Recommendation: We recommend the County complete an assessment of its financial management system and related internal controls over federal awards during the 2024 fiscal year. This assessment should include an evaluation of existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to County employees, and procedures to periodically review and update, as considered necessary. Views of Responsible Officials: There is no disagreement with the finding.

2024-004 Review of Performance and Expenditure Report Federal Assistance Listing Number – 21.027 Federal Agency: Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Pass-Through Agency: Department of Administration Pass-Through Numbers(s): N/A Award Period: 3/1/2021 – 12/31/2024 Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Uniform Guidance requires the reporting of costs or activities in an annual Performance and Expenditure Report. Review of the report is an important control over compliance to ensure reports are properly prepared and agree with the County’s actual activity. Condition: The County did not perform review procedures over the Performance and Expenditure Report prior to submission. Questioned Costs: None Context: During reporting testing, it was noted the County does not have review process in place for reporting. Effect: Unallowed costs could be claimed, or costs could be double claimed. Repeat Finding: No Recommendation: We recommend that there is an appropriate reviewer of the Performance and Expenditure Report. Views of Responsible Officials: There is no disagreement with the finding.