FAC Explorer

Audit 39433

FY End
2022-12-31
Total Expended
$4.00M
Findings
2
Programs
5
Organization: Martin County (MN)
Year: 2022 Accepted: 2023-09-20
Auditor: Minnesota Office of the State Auditor

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42184 2022-002 Material Weakness - L
618626 2022-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $3.82M Yes 1
16.575 Crime Victim Assistance $96,040 - 0
97.042 Emergency Management Performance Grants $47,387 - 0
90.404 2018 Hava Election Security Grants $28,785 - 0
20.615 E-911 Grant Program $3,064 - 0

Contacts

Name Title Type
MC8CWEH6FPF8 Michael Forstner Auditee
5072383272 Julie Blaha Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation to Schedule of Intergovernmental Revenue Accounting Policies: Reporting EntityThe Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by Martin County. The Countys reporting entity is defined in Note 1 to the financial statements.Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Martin County under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Martin County, it is not intended to and does not present the financial position or changes in net position of Martin County.Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Reconciliation to Schedule of Intergovernmental RevenueFederal grant revenue per Schedule of Intergovernmental Revenue$ 5,568,664Grants received more than 60 days after year-end, unavailable in 2022Emergency Management Performance Grants (AL No. 97.042)25,804Unavailable in 2021, recognized as revenue in 2022Highway Planning and Construction (AL No. 20.205)(1,596,000)Expenditures per Schedule of Expenditures of Federal Awards$ 3,998,468

Finding Details

Finding 2022-002
2022-002 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLFRP3710; 2021 Pass-Through Agency: N/A Criteria: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. In addition, U.S. Treasury requires an annual Project and Expenditure Report submitted for Coronavirus State and Local Fiscal Recovery Funds that includes current period obligations and expenditures. Condition: The County overstated current period obligations and expenditures reported on the annual Project and Expenditures Report by $979,872. Questioned Costs: None. Context: The annual Project and Expenditure Report was required to be prepared for the year ending March 31, 2023. The cumulative project obligations and expenditures were accurately reported; however, current period obligations and expenditures were overstated by including amounts from the prior reporting period. Effect: Noncompliance with federal requirements. Cause: The County indicated that they had trouble entering the obligations and expenditures into the online reporting system. Amounts were entered as necessary to arrive at the correct cumulative balances recognizing that the current period amounts were inaccurate. Recommendation: We recommend that the County implement procedures to ensure federal program reports are completed accurately. Procedures should include consulting reporting instructions provided by grantor agencies and contacting the grantor agencies for assistance when necessary. View of Responsible Official: Acknowledge
Finding 2022-002
2022-002 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLFRP3710; 2021 Pass-Through Agency: N/A Criteria: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. In addition, U.S. Treasury requires an annual Project and Expenditure Report submitted for Coronavirus State and Local Fiscal Recovery Funds that includes current period obligations and expenditures. Condition: The County overstated current period obligations and expenditures reported on the annual Project and Expenditures Report by $979,872. Questioned Costs: None. Context: The annual Project and Expenditure Report was required to be prepared for the year ending March 31, 2023. The cumulative project obligations and expenditures were accurately reported; however, current period obligations and expenditures were overstated by including amounts from the prior reporting period. Effect: Noncompliance with federal requirements. Cause: The County indicated that they had trouble entering the obligations and expenditures into the online reporting system. Amounts were entered as necessary to arrive at the correct cumulative balances recognizing that the current period amounts were inaccurate. Recommendation: We recommend that the County implement procedures to ensure federal program reports are completed accurately. Procedures should include consulting reporting instructions provided by grantor agencies and contacting the grantor agencies for assistance when necessary. View of Responsible Official: Acknowledge