Audit 377392

Criteria: Internal Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Compliance: Per 2 CFR 200.213, Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The County did not have an internal control process and did not maintain documentation of a vendor’s suspension and debarment status. Cause: The County had not developed internal control policies and procedures to prevent entering into a contract with an organization that was debarred or suspended. The County’s Procurement office indicated they were unaware of the suspension and debarment verification requirement for all federally funded procurements and subawards $25,000 or more. Questioned Costs: None noted. Effect: Federal funds may be paid to parties that are ineligible to participate in a federal program. Recommendation: We recommend the County evaluate its policies procedures to ensure that suspension and debarment requirements are being met prior to entering into transactions with vendors. Identification of Repeat Finding: This is a repeat finding. Views of Responsible Officials: Management agrees with the finding.

Criteria: Internal Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Compliance: Monitoring the activities of the subrecipients is necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f)). Condition: The County did not have a process for monitoring subrecipients and did not provide documentation to support subrecipient monitoring for all subawards issued during fiscal year 2023. Cause: The County’s Finance Office was unaware of subrecipient monitoring requirements for all federally funded subawards. Internal controls were not properly designed and the County was not in compliance with requirements. Questioned Costs: None noted. Effect: Federal funds may be used for purposes that are not in accordance with the terms of the grant agreement. Recommendation: We recommend the County review and enhance internal controls and procedures to ensure that all subrecipients are monitored and reviewed. Identification of Repeat Finding: This is a repeat finding. Views of Responsible Officials: Management agrees with the finding.

Criteria: Internal Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County was unable to provide documentation to support review and approval of the eligibility determination and disbursement of benefits. Cause: The County’s procedures and controls were not sufficient to ensure that eligibility determination and benefit disbursements were properly reviewed and approved. Questioned Costs: None noted. Effect: Failure to review and approve eligibility of program participants may result in benefits being disbursed to ineligible participants. Recommendation: We recommend the County review and enhance internal controls and procedures to ensure that the review and approval of the eligibility of program participants is documented and disbursements are allowable. Identification of Repeat Finding: This is a repeat finding. Views of Responsible Officials: Management agrees with the finding.

Criteria: Internal Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County was unable to provide documentation to support review and approval of the monthly report required by the grantor. Cause: The County’s procedures and controls were not sufficient to ensure that reports were properly reviewed and approved before submission to the grantor. Questioned Costs: None noted. Effect: Failure to review and approve reports required by the grantor may result in erroneous reports being submitted to the grantor. Recommendation: We recommend the County review and enhance internal controls and procedures to ensure that the review and approval of the monthly report is documented. Identification of Repeat Finding: This is a repeat finding. Views of Responsible Officials: Management agrees with the finding.