Audit 373506

Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matter Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Determination of allowable costs • Employee travel • Cash management • Procurement • Conflicts of interest • Subrecipient monitoring and management Condition and Context The County has not developed written formal documentation of internal controls to encompass all required areas per the Uniform Guidance. Cause The County has not developed written formal documentation of internal controls to encompass all required areas per the Uniform Guidance. Effect or Potential Effect Due to the weaknesses in internal controls noted above, the County did not comply with the requirements of the Uniform Guidance over documented policies and procedures. No questioned costs are reported as this requirement is procedural in nature. Recommendation The County should address the weakness noted above and create policies and procedures related to federal awards in order to comply with the Uniform Guidance. Views of Responsible Official Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

Improve Internal Controls Over Reporting Federal Program(s) Information Federal Agency: U.S. Department of the Treasury Award Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Year: 2022 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance – Material Weakness Criteria or Specific Requirement 2 CFR 200.303 requires the County to establish and maintain effective internal controls over federal awards to ensure compliance with federal statutes, regulations, and the terms and conditions of the award. Per U.S. Department of the Treasury’s Coronavirus State and Local Fiscal Recovery Funds: Compliance and Reporting Guidance, recipients are required to accurately report project-level information, including the breakdown of expenditures by individual project, and to avoid duplicative or misclassified reporting of expenditures across reporting periods. Condition and Context During our audit, it was determined that the County prepared and submitted its quarterly performance and evaluation reports to Treasury within the required timeline. However, there is no documented review of the project and expenditure reports by an individual that is not involved with preparing the reports. Additionally, key line items, specifically current period expenditures and total cumulative expenditures, included on the project and expenditure reports for quarters 2 and 4 of 2022 (April-June and October-December) did not agree to the general ledger, as required by the terms of the grant agreement. Cause The County’s internal controls over federal award reporting did not ensure expenditures were accurately reported. Effect or Potential Effect Inaccurate reporting of project-level and current period expenditure information increases the risk of noncompliance with federal reporting requirements and impairs the transparency and oversight expected by the Treasury. No questioned costs are reported as the requirement is procedural in nature and costs reported were ultimately deemed allowable. Recommendation The County should address the weakness in internal controls noted above by requiring tow individuals to be involved in preparing and reviewing reports submitted to federal agencies to ensure the reports are complete and accurate. Views of Responsible Official Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

Timely Filing of Single Audit Report Type of Finding Compliance - Other Matter Criteria or Specific Requirement According to 2 CFR 200.512(a) of the Uniform Guidance, auditees are required to submit the audit report and Data Collection Form (DCF) to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after the reports are received from the auditor or nine months after the end of the audit period. Condition and Context The DCF has not been submitted by its due date of September 30, 2023. Cause Delays in the federal single audit process led to the delay in the federal single audit being completed. Effect or Potential Effect Delays in the single audit resulted in the FAC deadline being missed. Failure to submit the single audit report timely constitutes noncompliance with federal audit requirements. No questioned costs are reported as this requirement is administrative in nature. Recommendation The County should implement formal internal control policies and procedures to rectify the conditions noted above. Views of Responsible Official Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.