Criteria: The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: Red Lake County did not submit the data collection form to the Federal Audit Clearinghouse within the required time frame. Context: Red Lake County was in violation of the reporting requirements when their audit was not completed until 11 months after the end of the fiscal year. Effect: This instance of later reporting is not expected to reoccur. Cause: Delays in completeness of information resulted in late reporting. Recommendation: The annual County audit should be completed within nine months of the fiscal year end to allow for timely submission of the data collection form and reporting package. County’s Response: The late audit report was beyond the control of the County. The County Auditor will monitor the progress of the annual audit in the future so that the annual audit will be completed on a timely basis as described in our Corrective Action Plan.
Criteria: Federal requirements for the 20.205 Highway Planning and Construction awards include subrecipient monitoring for the award. Condition: The County was not in compliance with the requirements: - Obtain an understanding of internal control, assess risk, and test internal controls. - Identify the requirements of the pass thru money and convey the terms and conditions to the subrecipient. - Monitor the subrecipient to verify that the award was spent in accordance with the terms and conditions set forth by the award. Context: The Highway Department passed $728,000 from the federal government through to the City of Red Lake Falls for the trail project. Various documentation was required to comply with the subrecipient monitoring portion of the award. Effect: Noncompliance with federal award requirements. Cause: The monitoring of pass-thru awards was missing in the documentation of the subrecipient project. Recommendation: We recommend the County abide by their policy for subrecipient monitoring. County’s Response: The County acknowledges the finding and will take corrective action to ensure compliance with federal subrecipient monitoring requirements. The County will review its procedures to ensure that all future subrecipient agreements include proper documentation of monitoring activities, including communication of award terms, risk assessments, and verification that funds are expended in accordance with federal requirements. The County Highway Department and Auditor’s Office will work together to document all subrecipient monitoring steps for future federally funded projects.